By Muhammad Mamman
The Nigeria Labour Congress (NLC) has strongly opposed reported plans by the Federal Government to grant a N3 trillion bailout to privately owned electricity generation companies, describing the move as unjustifiable and detrimental to ordinary Nigerians.
In a statement issued on Thursday, the labour union argued that any such intervention would amount to “rewarding inefficiency and corporate mismanagement” in the power sector, while millions of citizens continue to grapple with erratic electricity supply and rising tariffs.
‘No Justification for Public Funds’
The NLC said the proposed bailout raises serious concerns about accountability within Nigeria’s privatised power industry. It maintained that power generation companies (GenCos), which acquired assets following the 2013 unbundling and privatisation of the former Power Holding Company of Nigeria (PHCN), must be held responsible for operational shortcomings.
“The Nigerian worker should not be made to shoulder the burden of corporate inefficiency,” the union said. “If public funds are to be deployed, there must be clear evidence of value for money, transparency, and measurable improvements in electricity supply.”
Nigeria privatised its electricity generation and distribution companies over a decade ago in a bid to attract private investment and improve service delivery. However, the sector has continued to struggle with liquidity challenges, gas supply constraints, ageing infrastructure and mounting debts.
Sector Woes and Mounting Debts
Generation companies have repeatedly warned that persistent market shortfalls and unpaid government subsidies threaten their operations. Industry operators say they are owed trillions of naira due to tariff shortfalls and unpaid invoices.
But the NLC insists that the government must conduct a comprehensive audit of the sector before committing any additional public resources. It also called for a review of the privatisation framework to determine whether the current operators have met the terms of their acquisition agreements.
Call for Accountability and Reform
The labour body urged the Federal Government to prioritise structural reforms rather than financial bailouts, stressing that improved governance, stricter regulatory oversight, and enhanced investment in infrastructure would offer a more sustainable solution.
It warned that any move perceived as favouring private firms at the expense of struggling citizens could spark nationwide resistance.
The Federal Government has yet to issue an official response to the NLC’s position.
Nigeria, Africa’s most populous nation, continues to face chronic electricity shortages, with generation levels frequently falling far below installed capacity, leaving households and businesses reliant on costly alternative power sources.
