NLC Rejects FG’s N6 trillion bailout for power generation

…Demands total reform

The Nigeria Labour Congress (NLC) has rejected the proposed ₦6 trillion bailout for power generation companies, emphasizing that public funds should not be utilized to support what it described as a “cartel of failed investors.“

The union also urged the Federal Government to consolidate the Ministries of Power and Petroleum into a single Ministry of Energy, arguing that this structural change is necessary to address Nigeria’s persistent electricity crisis.

In a statement issued on Sunday in Abuja by NLC President Comrade Joe Ajaero, the labour body highlighted the systemic disconnect between the petroleum and power sectors, particularly in the coordination of gas supply for thermal power plants, as a core issue behind the country’s electricity woes.

The NLC criticized the mismanagement and inefficiencies in the sector, stating that Nigerians continue to endure poor service while paying ever-increasing tariffs. It referred to the power sector’s challenges as a “perpetual millstone” on Nigerian workers, businesses, and citizens, urging a comprehensive overhaul.

The statement proposed merging the Power and Petroleum Ministries into a unified Ministry of Energy to eliminate inefficiencies caused by their siloed operations. The NLC stated that for years, these ministries have served differing interests, leading to policy mismatches and administrative gaps. Under such fragmentation, the nation has seen economic stagnation and infrastructure deterioration, according to the union.

The Congress also lambasted operators across the electricity value chain for exploiting Nigerians. It accused energy companies of imposing inflated tariffs while delivering subpar services, lamenting that citizens are “paying for darkness.” Furthermore, it criticized both the government and the petroleum industry for prioritizing gas exports over local power generation needs, describing this approach as a “design flaw that perpetuates inefficiency.”

On the proposed ₦6 trillion bailout for power companies, the NLC argued it reflects deeper systemic failures in Nigeria’s electricity sector. The Congress declared that public funds should not be used “to patch up a system designed to fail its citizens,” emphasizing that sustainable solutions must address structural issues rather than providing financial relief to private investors.

The union also called for the introduction of a “service-reflective” tariff model to replace the current cost-reflective system. Ajaero argued that Nigerians should pay only for actual electricity services delivered, not for inefficiencies or operational failures within the sector.

The statement further criticized the 2013 privatization of Nigeria’s power sector as a failure, asserting that private operators prioritize profits over service delivery. According to Ajaero, electricity is a fundamental public good and should be treated as a social service rather than a luxury commodity traded in open markets.

Lastly, the NLC stressed the importance of reprioritizing domestic energy needs over export-driven policies. By merging the power and petroleum sectors into one ministry and shifting gas resources toward local industrialization, the Congress believes Nigeria can regain control over its energy resources to better serve its citizens’ needs.