NLC rejects N6trn bailout, demands urgent Power Sector overhaul

By Joan Nwagwu

The Nigeria Labour Congress, NLC, has opposed the proposed N6 trillion bailout for power generation companies, warning that continued financial interventions have failed to resolve Nigeria’s electricity crisis.

NLC President, Joe Ajaero, in a statement issued on Sunday in Abuja, said the planned bailout addresses symptoms rather than the root causes of inefficiencies in the power sector.

“The proposed N6 trillion bailout is a mere symptom of deeper structural failures in the power sector, and repeated financial interventions have not translated into improved electricity supply for Nigerians,” Ajaero said.

He argued that injecting public funds into what he described as a flawed system would further burden citizens, who already contend with high tariffs and persistent power outages.

“We cannot continue to deploy public funds to sustain a fundamentally flawed system, while ordinary citizens bear the burden of inefficiency through high tariffs and persistent outages,” he added.

The labour leader called for comprehensive reforms, including the merger of the Ministries of Petroleum and Power into a single Ministry of Energy to improve coordination and efficiency.

According to him, the current separation has created bottlenecks, particularly in gas supply for thermal power generation, undermining stable electricity production.

Ajaero maintained that a unified energy structure would allow for better planning, prioritise domestic electricity needs and support broader national development goals.

He also urged the Federal Government to suspend the proposed bailout, insisting that public funds should not be used to support private investments that have not delivered expected results.

“Electricity must be treated as a social service and a fundamental right, not a profit-driven commodity, if Nigeria is to achieve affordable and reliable power supply,” he said.

The NLC further called for a stakeholders’ summit to design a people-focused roadmap for the power sector, stressing the need for policies that place public interest, energy security and workers’ welfare at the centre of reforms.

The News Agency of Nigeria reports that the position by the labour union adds to growing debate over the sustainability of Nigeria’s power sector financing model, as the government continues to grapple with improving electricity supply across the country.