• Sunday, May 19, 2024
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BusinessDay

Kaduna Disco raises employee salaries amid financial struggles

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Despite grappling with a staggering debt of N110 billion and other operational hurdles, the Kaduna Electricity Distribution Company has opted to implement a significant move by raising the salaries of its workforce by 10 per cent.

The decision follows the recent dissolution of the company’s board of directors by the Nigerian Electricity Regulatory Commission (NERC) due to its failure to settle the substantial debt owed within the Nigeria Electricity Supply Industry framework.

Consequently, Umar Hashidu has been appointed by NERC as the administrator of Kaduna DisCo under the provisions outlined in Section 75 of the Electricity Act.

In a statement issued on Wednesday, Hashidu announced the forthcoming salary increase during a meeting with the management team, emphasizing its strategic importance in bolstering employee morale and enhancing overall company performance in the face of formidable challenges.

“The salary adjustment is a proactive measure aimed at motivating our staff amidst the prevailing economic uncertainties in the country,” stated Hashidu, highlighting the pressing need to address the escalating cost of living crisis.

Hashidu further underscored the board and management’s confidence in the salary increment as a catalyst for inspiring staff to redouble their efforts in steering the company through its current adversities.

Acknowledging the precarious state of the Nigerian Electricity Supply Industry, Hashidu characterized it as being on life support, with Kaduna Electric facing challenges in meeting market obligations and exhibiting lackluster compliance with NERC performance indices. Nevertheless, he expressed optimism in overcoming these obstacles through concerted efforts.

Hashidu urged all staff members to approach their responsibilities diligently, citing positive growth trends observed in energy sales during January as an encouraging sign amidst the company’s recent leadership transition.

The announcement comes following the resignation of the former Managing Director, Yusuf Yahaya, prior to the dissolution of the company’s board, signaling a period of transition and reform within Kaduna Electric.