BROKEN PROMISES: The Untold Story Of PHCN Privatization, Betrayed Workers & The Jettisoned Labour Agreement

By Damilola Omosebi

A Privatization Built on False Promises

The privatization of the Power Holding Company of Nigeria (PHCN) in 2013 was supposed to mark a new dawn for Nigeria’s electricity sector. Instead, it became one of the most controversial, chaotic, and unjust reforms in Nigeria’s history.

At the heart of the scandal were thousands of PHCN workers who were promised fair severance packages, job security, and proper labour transition only to be abandoned, shortchanged, and betrayed by the government, the Bureau of Public Enterprises (BPE), and the new private owners.

This investigative report uncovers:

• The original agreements between labour unions and the government
• How the BPE manipulated the process
• Why thousands of workers were denied their full severance benefits
• How the Tinubu government can still correct this injustice

The Labour Agreement: What Was Promised?

Before privatization, PHCN workers, under the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC), engaged in protests, strikes, and negotiationswith the federal government.

Key Agreements Reached:

1. Full Severance Payments: Workers were to receive 100% of their entitlements before privatization.
2. Pension Rights: PHCN staff were to be transferred to the new Pension Commission (PENCOM) scheme without losses.
3. Job Protection: At least 50% of workers were to be retained by the new private owners.
4. Hazard Allowances & Arrears: All outstanding salaries and allowances were to be paid in full.

The unions suspended their strikes based on these promises; only for the government to renege on nearly every agreement.

The BPE’s Role: How Workers Were Shortchanged

The Bureau of Public Enterprises (BPE), which managed the privatization, deliberately underfunded worker entitlements** while rushing to sell PHCN assets.

How the BPE Cheated Workers:

1. Ghost Worker Scam: The BPE claimed over 10,000 “ghost workers” were on PHCN’s payroll; slashing legitimate workers’ severance.
2. Underpaid Severance: Many workers received only 40-60% of what they were owed.
3. Pension Fraud: Some retirees were delisted from PENCOM, leaving them without pensions.
4. Arrears Not Paid**: Unpaid salaries and hazard allowances disappeared after privatization.

The Big Lie: “No Money for Workers, But Billions for Buyers”

• The government claimed it lacked funds to pay PHCN workers.
• Yet, it wrote off DISCO debts worth ₦100 billion for private investors.
• The same government later bailed out DISCOs with ₦1.3 trillion —while ex-PHCN workers suffered.

The Union Betrayal: Did NUEE & SSAEAC Sell Out?

Many workers believe their unions compromised under pressure from the government.

Suspicious Union Actions:

1. Sudden Strike Suspension: After initial resistance, NUEE called off strikes without full worker benefits.
2. Secret Deals with BPE: Some union leaders allegedly accepted payments to silence protests.
3. Failed Legal Battles: Lawsuits filed by unions dragged for years with no results.

Workers’ Testimonies: “We Were Abandoned”

• “I worked for 25 years, but my severance was slashed by 50%.” – Ex-PHCN engineer, Lagos.
• They removed my name from PENCOM. I have no pension now.” – Retired staff, Enugu.
• The unions collected money and left us to suffer.” – Former technician, Kaduna.

The Tinubu Government’s Chance for Redemption

A decade after privatization, thousands of ex-PHCN workers remain unpaid, stranded, and angry. The Tinubu administration can still correct this injustice as part of its labour reform agenda.

Urgent Steps Needed:

1. Audit All Severance Payments: Recalculate and pay missing entitlements with interest.
2. Restore Stolen Pensions: PENCOM must reinstate delisted retirees.
3. Prosecute BPE Officials: Those who manipulated worker payments** must face trial.
4. Compensate Families of Deceased Workers: Many died waiting for their benefits.

Will Justice Ever Come?

The PHCN privatization was not just an economic reform; it was a mass betrayal of Nigerian workers. The BPE, the government, and even union leaders colluded to cheat ordinary employees while billionaires took over the power sector.

President Tinubu has a choice: Will he fix this historic injustice, or will he continue the cycle of impunity?