The Federal Government has set aside about N20 billion to offset the total pension payment to be accumulated by retiring and retired workers of the Power Holding Company of Nigeria (PHCN) in 2012, THISDAY has learnt.

An authoritative source in the power sector hinted that the money is a part of a lump sum earmarked for disbursement to the workers in settlement of their severance package following their imminent transfer to the 18 PHCN successor companies.

This development is coming on the heels of resumption of negotiation between the government and representatives of electricity workers union in their quest to reconcile all labour related issues on the privatisation of the utility.

Ahead of resumption of negotiation with labour at the weekend in Abuja, the Minister of Power, Prof. Barth Nnaji, had invited the Federal Government negotiating team to a meeting in his office where reminded them of government’s intentions to move the sector forward.

He also confirmed that the N20 billion pension fund was available for disbursement amongst other funds for severance settlements, which he would not expantiate.

Nnaji was said to have allayed the workers’ fears regarding their alleged planned retrenchment or sack without payment of their severance package and assured them that of government’s commitment to a transparent process that would lead to the eventual reform of the power sector.

The source said, “Government from my understanding is desirous of opening up the power sector with its reforms agenda and has in this regards initiated measures that will lead to its success, notable amongst this is the N20 billion it has set aside to pay for the pension of PHCN pensioners in 2012.

“The N20 billion has been set aside to offset the pension of PHCN pensioners for 2012 and that is just part of funds available to take care of the severance package of the workers that will be transferred to the 18 successor companies.

“Now, following the directive from the Nigerian Electricity Regulatory Commission (NERC) that PHCN is no longer a market participant and payments to its workers at the headquarters should stop, the ministry as a responsible employer initiated to transfer the workers to the 18 successor companies.”

He added: “But the workers are scared that if they accept transfers, there won’t be anybody to pay them severance benefits. That is actually untrue, because the government has initiated measures to offset whatever severance payment that will be made.

“There is money to pay them their benefits as they are transferred and that is what the minister told the government negotiating team to tell them at the meeting, government is determined to play its part faithfully in the ongoing negotiation that will lead to reforms in the power sector.”

THISDAY also learnt that government was likely to accept sensible agreements reached with the union to ensure that the reform process is not further delayed; hence, putting the whole process in jeopardy.

Hope those @ the top won't loot from that purse this time around