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FG Declines Lagos’ Request for Power Distribution Companies

By on April 24, 2013

State threatens legal action on National Theatre Dagogo-Jack accuses Labour of crisis in PHCN

Gboyega Akinsanmi
Lagos State Government has disclosed that the federal government has declined its offer to acquire power distribution companies namely Eko and Ikeja Power Distribution Companies situated in the state.

The state government also rejected the plans of the federal government to sell the National Theatre without offering it the right of first refusal in line with the extant legal provision.
The state government noted that if the federal government decides to sell the edifice, it would challenge the action in court.

The state Attorney-General and Commissioner for Justice, Mr. Adeola Ipaye, expressed the state’s disproval of the federal government’s decision on the power stations in an exclusive chat with THISDAY.

On the power distribution stations, the attorney-general explained that the state government had expressed interest out of anxiety and concern “to solve what we think was an eminently solvable problem.”

He added that lack of electricity “damages the Lagos economy more than any other state in Nigeria. However, we were not allowed to do so. Private companies were preferred. We are doing what we can by way of isolated power plants.”

Fielding questions on the planned sale of National Theatre, Ipaye said that the state government “is really not sure of the intentions of the federal government in this regard. However, we reiterate our readiness to take over, refurbish and use these heritage assets for their intended purposes.”

The attorney-general added that that the state government eminently “deserves of this opportunity. In a very real sense, we do have a stake in these monuments, having hosted the federal government as capital territory for so long and created the enabling environment for their establishment.”

“Apart from their being on Lagos soil, these monuments are an intimate part of the Lagos history and social scene. If anyone can be trusted to value and treasure them, it is the Lagos State Government.”

But he added that the state government “will no doubt consider the legal option if we are denied right of first refusal again. We feel very strongly about these monuments – for all the good reasons. In the meantime, we are focused on persuasion, hoping that the federal government will appreciate the obvious merit of our position.”

The comissioner clarified public debate that the proposal to extend tenure of the elected officials of the 57 local councils in the state had generated, noting that the proposal became necessary in order to put an end to public consternation and complaint over poor records of governance at the grassroots.

He explained that the elected official at the grassroots “spend the first year settling down, appreciating the demands of the office and generally orientating themselves. Let us assume that by the second year they have a fair grip and increasing efficiency, this is virtually lost by the third year.

“With elections approaching, they are heavily distracted. A lot of people have canvassed the harminisation of terms of office across the board, i.e., federal, state and local governments, so that we do not have what appears to be an unending political or electioneering season. In this light, we believe that the proposed amendment will make governments more efficient at the local level.

“If the amendment worthy of passage finally sails through as proposed, he said the serving political office holders at the local government level “will be at par with their colleagues at the state and federal levels.”

He stated that the councils’ elected officials would get a four-year term which, he said, was renewable once provided they “are reelected. After two terms, they will not be able to contest for the same position again.”

Meanwhile, the Chairman of the Presidential Task Force on Power (PTFP), Beks Dagogo-Jack, has attributed the reasons why the federal government has failed to so far to reach an agreement with members of the unions in the Power Holding Company of Nigeria (PHCN) to selfishness.

Speaking Tuesday at the signing ceremony of the various transaction documents in the ongoing power sector reform exercise and privatisation of successor companies, Dagogo-Jack said government’s prolonged negotiations with PHCN labour unions as regards payment of severance benefits to the workers were not unconnected with influence from people who have over time benefited from the lack of reforms in the sector.

He told journalists at the side-lines of the ceremony which was conducted by President Goodluck Jonathan alongside Vice-President Namadi Sambo at the State House that the alleged interests have got potentials to upstage negotiations in the settlement process.

“First and foremost, the labour settlement process is captured in an understanding and in that there are core elements, whatever is not represented in that understanding and brought out today is a renegotiation and you don’t renegotiate in a signed contract; I don’t think it will survive in the public arena and not to talk about the law courts because there are so many adjudication points that could be kicked in if any party to a contract discovers a renegotiation.”

( This Day)

One Comment

  1. Idowu mki

    April 24, 2013 at 9:29 pm

    What business does Lagos state have with buying electrical distribution company. Doesn’t the state have enough on it’s plates. World wide goverments are divesting from such business, Lagos state wants to do the opposite. At times our political leaders amaze my. The basic things like housing, roads, health care and security is still lacking they want to take on a very capital intensive venture like electricity generation. Misguided piorities, what a shame