The Nigeria Labour Congress (NLC) has strongly opposed the proposed N6 trillion bailout for electricity generation companies (GenCos), describing it as a misplaced intervention that fails to address the root causes of Nigeria’s power sector crisis.
In a statement issued on Sunday, NLC President Joe Ajaero said the continued dysfunction in the electricity industry has placed a heavy burden on workers, manufacturers, and the general public.
He accused key players in the electricity value chain—particularly distribution companies (DisCos) and GenCos of benefiting from subsidies and repeated tariff increases, while Nigerians continue to suffer poor power supply.
“The nation’s power sector has become a perpetual millstone around the necks of Nigerian workers, while cronies in the DisCos and GenCos continue to feast on public resources,” Ajaero said.
Rejecting the proposed bailout, the labour union insisted that injecting funds into the sector without structural reforms would only provide temporary relief.
“We cannot continue to apply bandages to a system that is fundamentally fractured,” the NLC stated.
As part of its recommendations, the union called for the merger of the Ministries of Power and Petroleum Resources into a single Ministry of Energy to address longstanding inefficiencies especially those linked to gas supply for thermal power generation.
According to the NLC, operating the two sectors separately has encouraged a lack of coordination and accountability.
“For too long, these ministries have worked in silos while the economy suffers. A unified structure would ensure clear responsibility and end the blame game,” the statement added.
The labour body also criticised the petroleum sector for prioritising gas exports over domestic energy needs, arguing that such policies have worsened electricity shortages across the country.
On electricity pricing, the NLC demanded a review of the current tariff regime, advocating a model where consumers pay based on service delivery rather than cost-reflective tariffs.
“Nigerians should not be forced to pay for inefficiency and greed. Electricity must be priced based on service, not imposed costs,” it said.
Reiterating its opposition to the privatisation of the power sector, the NLC maintained that the 2013 reforms have failed to deliver reliable electricity to Nigerians.
It urged the Federal Government to halt the planned bailout, initiate comprehensive reforms, and convene a national stakeholders’ summit to chart a sustainable, people-focused roadmap for the sector.
Warning of wider economic implications, the union said continued inefficiencies in the power sector could further weaken Nigeria’s economy if urgent corrective measures are not taken.