The Nigeria Labour Congress (NLC) has rejected the Federal Government’s proposed ₦6 trillion bailout for power generation companies (GenCos), describing it as a temporary fix that fails to tackle the country’s deep-rooted electricity challenges.
NLC President, Joe Ajaero, criticised the power sector as a persistent burden on Nigerians, accusing political elites and industry players of exploiting the system through questionable subsidy claims and high tariffs while citizens continue to endure poor electricity supply.
The union argued that the bailout only addresses symptoms of a broader structural problem. As a solution, it called for the merger of the Ministries of Petroleum and Power into a single Ministry of Energy to improve coordination, accountability, and prioritisation of domestic electricity needs.
According to the NLC, such a move would eliminate institutional fragmentation, ensure better resource management, and reduce the influence of profit-driven interests in the sector.
The group also urged the government to halt the bailout plan and instead convene a national stakeholders’ summit to develop a comprehensive “People’s Power Roadmap” focused on energy security, public ownership, and the welfare of citizens.
Nigeria’s power sector has faced ongoing instability, marked by frequent grid collapses, reduced generation, and plant shutdowns. In mid-March 2026, about 16 of the country’s 33 power plants reportedly went offline due to gas supply disruptions linked to over ₦3 trillion in unpaid debts. Electricity output dropped to around 3,700–4,000 megawatts—well below installed capacity.
While GenCos claim they are owed up to ₦6.5 trillion, the NLC disputes the figures, arguing that the sector’s privatisation in 2013 has not delivered improved performance or capacity.
The union also criticised the government’s handling of gas resources, noting that export priorities often take precedence over domestic electricity generation, worsening power shortages.
It further called for reforms in electricity pricing, advocating a shift from “cost-reflective” tariffs to service-based pricing tied to actual power delivery.
Ultimately, the NLC warned that continued reliance on bailouts without structural reform would only deepen the crisis, urging the government to adopt a more sustainable and people-focused approach to fixing Nigeria’s power sector.
