The Nigeria Labour Congress has rejected a proposed 6 trillion-naira (about US$4 billion) bailout for power generation companies, arguing that repeated financial interventions have failed to improve electricity supply in Nigeria.
In a statement issued in Abuja on Sunday, NLC President Joe Ajaero said the planned bailout would not address the underlying structural challenges facing the country’s power sector.
“The proposed N6 trillion bailout is a mere symptom of deeper structural failures in the power sector,” Ajaero said. “We cannot continue to deploy public funds to sustain a fundamentally flawed system.”
Nigeria has for years struggled with chronic power shortages, despite multiple reforms and privatisation efforts aimed at improving generation, transmission, and distribution.
The labour union said previous bailouts and financial support to the sector have not translated into better electricity access, with many households and businesses still facing high tariffs and frequent outages.
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Ajaero called instead for sweeping reforms, including the creation of a unified energy authority by merging the ministries responsible for power and petroleum.
According to him, the current separation has led to coordination challenges, particularly in gas supply to thermal power plants, which generate a significant share of Nigeria’s electricity.
“An integrated energy framework will prioritise domestic electricity needs and enhance national development,” he said.
The Nigeria Labour Congress also urged the government to suspend the bailout plan and redirect efforts toward restructuring the sector to improve efficiency and service delivery.
It argued that public funds should not be used to support what it described as failed private investments, stressing the need for accountability and better governance in the industry.
Ajaero further called for electricity to be treated as a social service rather than a profit-driven commodity, to ensure broader access and affordability.
“Electricity must be treated as a fundamental right if Nigeria is to achieve reliable and affordable power supply,” he said.
The union is also pushing for a national stakeholders’ summit to develop a comprehensive, people-centred roadmap for the sector, with a focus on energy security and consumer welfare.
Analysts say the NLC’s position reflects growing public frustration over persistent power challenges in Nigeria, where businesses often rely on costly diesel generators to bridge supply gaps.
The federal government has yet to formally respond to the union’s position, but the debate underscores the difficult balance between sustaining private sector participation and delivering reliable electricity in one of Africa’s largest economies.
