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PHCN: Generate Revenue for 50pc Salary Increase – Nnaji

By on September 28, 2011

Chief Executive Officers of the power generation and distribution companies, are to generate revenue to pay the 50 per cent hike that the government approved for workers of the Power Holding Company of Nigeria ( PHCN ), the Minister of Power, Prof Barth Nnaji has said.

In a statement, yesterday, the Head, Media Relations of the Ministry, Greyne Anosike, said the minister described the increase as miserable, stressing  that the government would no longer earmark funds to accommodate  salary increment in future.

Nnaji reminded them that the hike in salary would be funded from the revenue generated by the workers, ” as the government would not commit a dime in this wise,” adding that the government has improved and stabilised generation, cut down losses and paid three months’ arrears of the 50 per cent basic salary increase.

He said: “We have improved and stabilised generation, curtailed losses, paid 50 per cent basic salary increase with arrears to be undertaken by the Federal Government from June to August 2011. The onus is on you to prove that you are qualified and capable to drive the nation’s economic engine.”

“You are no more representing the government.  These are your companies, run them as private enterprises. It is not possible to owe a private enterprise billions of naira on electricity consumed without being disconnected, and asked the companies to embark on mass revenue drive and spare no debtor who owes the company,”  he said, adding, that would be the only way to shoulder their wage obligation and still make profits.

Nnaji urged the chief executives to device appropriate management strategy of the consumer metres and warned that it is a criminal offence for any person to bye-pass metres.

Responding, the CEOs pledged to work harder to generate, not only more electricity, but revenue to justify the enormous funds injected into the power sector.

The minister praised the determination of the CEOs of the generation and distribution companies, who have pushed generation beyond 4005 megawatts, excluding the 268MW spilling reserves, saying the President is appreciative of their efforts.

He urged them to do their best not to fail the nation, and called on the CEOs to forward their monthly requirement of gas to him. He said they are in business and as such, must work hard to pay their way.

On manpower, Nnaji called on the CEOs to juggle what they have for maximum benefit as a short term remedy, while appropriate long term steps are being considered to find a lasting solution to the manpower requirement of the sector, he stated.