Reaction from the field
The Nigeria Labour Congress (NLC) has urged the Federal Government to merge the Ministries of Power and Petroleum Resources into a single Ministry of Energy. This demand comes in response to ongoing inefficiencies in Nigeria’s energy sector, which the NLC argues are exacerbated by the current separation of these critical ministries.
Joe Ajaero, the President of the NLC, emphasized that the existing structure has led to significant operational challenges, particularly in gas supply for thermal power generation. He stated, “Electricity is a social service and a fundamental right, not a luxury commodity to be traded on the various capitalists’ markets.” This statement underscores the NLC’s position that access to electricity should be viewed as a basic human right rather than a privilege.
The NLC’s criticism extends to the proposed ₦6 trillion bailout for power generation companies, which they describe as a mere symptom of deeper structural failures in the power sector. Ajaero remarked, “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.” This sentiment reflects widespread frustration among citizens regarding the ongoing power crisis.
Supporting their claims, the NLC pointed out that 16 out of 33 power plants are currently offline due to gas supply cuts, which have resulted in unpaid debts amounting to ₦3 trillion. The current output of power generation stands between 3,700 and 4,000 MW, while the installed capacity exceeds 13,000 MW. This stark contrast highlights the inefficiencies that the NLC believes a merger could address.
Ajaero further criticized the 2013 privatization of the power sector, asserting that it has failed to improve generation capacity. He argued that the merger of the ministries would enable holistic energy planning and fairer electricity pricing, ultimately benefiting consumers and the economy as a whole.
The NLC has called for a halt to the proposed bailout and urged the government to convene a National Stakeholders’ Summit to discuss the future of Nigeria’s energy sector. The organization believes that without significant structural changes, the power sector will continue to stagnate, adversely affecting the manufacturing sector and overall national development.
As discussions around the merger and the proposed bailout continue, the NLC’s demands highlight the urgent need for reform in Nigeria’s energy policies. Details remain unconfirmed regarding the government’s response to these proposals and the potential for a National Stakeholders’ Summit.