Mounting Tensions Stall Staff Conversion at NDPHC Amid Employment Crisis

Sunday Aborisade in Abuja 

The Niger Delta Power Holding Company (NDPHC) is facing escalating employment crisis with mounting tensions over the fate of long-serving contract staff, regional balance in hiring, and financial constraints threatening to stall ongoing reforms.

At the heart of the controversy is the delayed conversion of third-party technical contract workers, many of whom have served for over a decade, into permanent or direct contract staff. 

While the current management had initiated a phased conversion process, resistance from interest groups, concerns over federal character compliance, and cost implications have disrupted the programme.

Engr. Abdullahi Kassim, the Executive Director of Generation at NDPHC, whose portfolio covers over 4,000MW of power generation assets, offered insight into the long-standing issue. 

In an interview with Thisday yesterday, he explained that many of the affected workers were initially engaged during the plant construction stage, with the expectation that they would transition to private ownership upon the planned sale of the plants. 

When privatisation efforts failed, he said, NDPHC was forced to retain control of operations and those workers were reassigned to third-party contractors.

“They were not directly hired by NDPHC,” Kassim clarified. 

“They were hired through contractors who are now responsible for their salaries and welfare,” he added.

Kassim admitted that on assuming office as the Executive Director, he pushed for the conversion of the technical personnel, many of whom have been instrumental in running NDPHC’s seven operational power plants.

In response, he said the new management under the Managing Director, Engr. Jennifer Adighijie initiated the first phase of conversion, absorbing 70 staff. Ten from each of the seven plants, into the company.

Kassim however noted that a petition filed by a northern advocacy group raised objections over the regional composition of the newly absorbed staff, alleging a breach of federal character principles. 

He said, “This prompted Vice President Kashim Shettima to order a review of the process.”

Kassim said the company provided an explanation to the Vice President, clarifying that the selected individuals were the longest-serving and most experienced among the workforce, with representation across multiple regions.

He said, “The petition stalled everything but the same group later submitted a counter-petition acknowledging the situation and expressing their understanding of the phased approach.”

Despite that, further progress has been delayed, Kassim added, revealing that plans were underway for a second phase of conversion, but acknowledged the company’s precarious financial state as a major obstacle. 

He noted that NDPHC is owed nearly ₦700 billion by distribution companies and other customers, which forms part of a broader ₦4 trillion debt owed to Nigeria’s generation companies.

He said, “We are barely able to pay salaries. When you convert a worker, new costs come in. Pension, gratuity, leave allowance.

“We have to absorb these costs gradually. That’s why we proposed a phased approach.”

The employment crisis had attracted scrutiny from pressure groups. 

The Concerned Citizens of Nigeria, in a recent statement by Comrade Bankole Ojo (President) and Comrade Steve Aighedo (Secretary) yesterday, alleged nepotism and favouritism in the employment of staff in the organisation.

The group called for a total overhaul of the company’s employment structure. 

The group also accused previous management of favouring politically connected individuals over experienced contract staff and criticised the working conditions of third-party workers, alleging lack of benefits, irregular pay, and poor job security.

Part of the statement read, “Why do NDPHC prefer to continue staff casualisation under generation directorate thereby sacrificing staff welfare for the benefits of contractors. 

“Why is the contributing pension scheme introduced just last year be run only by contract staff instead of both staff and employer? 

“Regrettably, some staff who were dedicated in their duties died at Alaoji Power Plant, Olorunsogo Power Plant and Sapele Power Plant, respectively, due to poor condition of service.

“Their welfare and emoluments were not adequate to cater for their needs, no regular salary payment as many contractors still owe staff for more than eight months as we speak.”

While Kassim did not directly address all of the group’s claims, he acknowledged the deep-rooted challenges.

He said, “I feel their pain. I spent years in the power plants. I understand the risks and the sacrifices. But we must balance empathy with compliance and financial realities.”

According to Kassim, the total number of contract staff due for conversion may exceed 200, and he reaffirmed that the management remains committed to continuing the process. 

“We’ve started discussions again with the MD. Phase two is in view, and hopefully we can proceed before the end of the year.”

He also called for broader support, urging electricity consumers to pay for services to improve the company’s cash flow and ability to meet staff obligations.

Kassim said, “Our only business is to generate and sell electricity. If customers don’t pay, we cannot survive. 

“Everyone, including staff, management, government and consumers, needs to come together to keep this company afloat.”

As internal petitions, financial strain, and regulatory hurdles persist, the conversion of NDPHC’s contract staff remains uncertain. 

For hundreds of skilled workers who have given over a decade of service under precarious conditions, the hope for job security now hinges on whether the company can overcome the political and economic headwinds threatening its future.