The Nigeria Labour Congress has rejected the Federal Government’s proposed ₦6 trillion bailout for power generation companies, describing it as a temporary solution that fails to address the deeper problems facing Nigeria’s electricity sector.
The NLC President, Joe Ajaero, said the country’s power sector has become a heavy burden on workers, manufacturers, and ordinary Nigerians. He accused political elites and operators in electricity generation and distribution companies of benefiting from subsidy claims and tariff increases while Nigerians continue to experience poor power supply.
According to the labour union, the proposed bailout only treats the symptoms of a larger structural crisis. It called for the merger of the Federal Ministry of Power and the Federal Ministry of Petroleum into a single Ministry of Energy to improve coordination and accountability in the sector.
The union also urged the government to organise a national stakeholders’ summit to develop a “People’s Power Roadmap” focused on public ownership, energy security, and the welfare of Nigerian citizens.
Nigeria has been experiencing severe electricity challenges in recent weeks, including frequent grid collapses, plant shutdowns, and reduced power generation. Reports indicate that about 16 of the country’s 33 power plants went offline in mid-March due to gas supply disruptions linked to debts exceeding ₦3 trillion owed to suppliers.
Power generation has reportedly dropped to between 3,700 and 4,000 megawatts, far below the country’s installed capacity of over 13,000 megawatts.
Generation companies say they are owed about ₦6.5 trillion in cumulative debts, which they claim has made it difficult to sustain operations.
The bailout proposal is linked to unpaid debts accumulated through electricity subsidies and invoices processed by Nigerian Bulk Electricity Trading Plc since 2010.
Last year, Bola Ahmed Tinubu approved ₦2.8 trillion in verified payments after an audit reduced the initial ₦6 trillion claim. Part of the payment included ₦501 billion issued through bonds under the Presidential Power Sector Debt Reduction Programme.
The labour union, however, insists that instead of another bailout, the government should implement structural reforms that would ensure stable electricity supply and accountability in the power sector
