The Nigeria Labour Congress (NLC) has strongly criticised the persistent challenges plaguing Nigeria’s power sector, describing the situation as a major burden on citizens and the economy. The union is now advocating a comprehensive restructuring of the energy system, including the merger of key government ministries.
In a statement issued by its President, Joe Ajaero, the NLC proposed the consolidation of the Federal Ministry of Petroleum and the Federal Ministry of Power into a single Ministry of Energy. According to the Congress, this move would address longstanding structural inefficiencies affecting electricity generation and distribution across the country.
The union also firmly rejected the proposed ₦6 trillion bailout for power generation companies (GENCOs) and distribution companies (DISCOs), warning against the use of public funds to support what it described as underperforming private operators.
The NLC expressed concern that Nigeria’s vast energy resources are not being managed in the interest of the general population. It argued that while private investors and political elites continue to benefit from the system through subsidies and tariff increases, ordinary Nigerians are left with unreliable electricity supply.
According to the statement, the ongoing crisis in the power sector reflects deeper systemic issues. The Congress maintained that piecemeal solutions, such as bailouts, would not resolve the fundamental problems, insisting instead on structural reform.
The proposed merger, the NLC explained, would eliminate the long-standing disconnect between the petroleum and power sectors. It noted that thermal power generation, which forms a significant portion of Nigeria’s electricity supply, is heavily dependent on gas—yet the gas supply chain is controlled by a separate sector with different priorities.
The union criticised the current arrangement where gas is often prioritised for export to generate foreign exchange, while local power plants struggle with shortages. It described this as a major flaw that undermines national development and energy security.
The NLC further argued that a unified Ministry of Energy would ensure better coordination and accountability. Under such a system, a single authority would oversee both gas production and electricity generation, reducing blame-shifting between ministries and ensuring more efficient service delivery.
In addition, the Congress called for a shift away from the current “cost-reflective tariff” model, which it said places the burden of inefficiency on consumers. Instead, it advocated for a “service-reflective tariff” system, where Nigerians pay based on the quality and reliability of electricity supplied.
The union also warned against monopolistic tendencies within the energy sector, stressing the need for government oversight to prevent the concentration of power and influence in the hands of a few private interests.
Reiterating its stance, the NLC described electricity as a basic social service and not a luxury commodity. It argued that the 2013 privatisation of the power sector has failed to deliver the expected improvements, as private operators continue to prioritise profit over service.
To address these challenges, the Congress urged the Federal Government to begin the process of merging the relevant ministries, halt the proposed bailout, and organise a national stakeholders’ summit. The aim, it said, should be to develop a comprehensive roadmap focused on public ownership, energy security, and improved welfare for Nigerians.
The NLC concluded that Nigeria’s economic growth and productivity cannot be sustained under the current power conditions, stressing that urgent and decisive action is needed to transform the sector for the benefit of all citizens.
NLC Calls for Unified Energy Ministry, Rejects ₦6 Trillion Power Sector Bailout
