Labour Pushes Energy Sector Overhaul, Rejects GenCos Bailout

The Nigeria Labour Congress (NLC) has called for sweeping reforms in Nigeria’s energy sector, including the merger of the Ministries of Power and Petroleum Resources into a single Ministry of Energy.

The union said the current structure has contributed to inefficiencies, particularly in gas supply for thermal power generation, worsening the country’s electricity crisis.

In a statement, NLC President Joe Ajaero criticised operators in the electricity value chain, accusing distribution and generation companies of benefiting from subsidies and tariff increases while Nigerians continue to experience poor power supply.

He described the sector as a burden on workers, manufacturers, and the general public, stating that citizens are effectively “paying for darkness.”

The NLC also rejected the proposed N6 trillion bailout for generation companies, arguing that it would only provide temporary relief to what it described as a fundamentally flawed system.

According to the union, repeated financial interventions without structural reforms would fail to address the root causes of inefficiency in the sector.

It further argued that merging the two ministries would ensure a single line of accountability, eliminate institutional overlaps, and improve coordination between gas supply and electricity generation.

The labour body also accused stakeholders in the petroleum sector of prioritising exports over domestic energy needs, noting that gas resources are often directed towards foreign exchange earnings rather than supporting local power generation.

In addition, the NLC called for a review of the electricity tariff regime, advocating for a pricing system tied to service delivery rather than cost-reflective tariffs.

Reiterating its opposition to the privatisation of the power sector, the union maintained that the 2013 reforms have failed to deliver expected outcomes and warned that continued inefficiencies could further strain Nigeria’s economy.

Loading

LEAVE A REPLY

Please enter your comment!
Please enter your name here