NLC Confronts Power Firms Over ‘Institutionalised Extortion’

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The Nigerian Labour Congress Warns of Nationwide Industrial Action Over Electricity Crisis

The Nigeria Labour Congress (NLC) has raised a stark warning to the government and power sector operators, threatening nationwide industrial action over the ongoing collapse of Nigeria’s electricity grid. The NLC claims that a decade of power sector privatisation has resulted in “darkness, exploitation, and economic pain” for citizens. It has also condemned the classification of electricity supply into A, B, and C as a form of institutionalised extortion.

At the National Union of Electricity Employees Annual Conference of Women and Youth in Abuja, NLC President Joe Ajaero delivered what he called a “final warning” to authorities and power sector operators. He insisted that organised labour would resist any further tariff increases or policies that deepen hardship without improving supply.

Ajaero lamented that over 10 years after the unbundling and sale of the Power Holding Company of Nigeria, successor companies have not seen significant improvements in electricity generation. Despite Nigeria’s growing population and industrial demands, generation remains stagnant at between 4,000 and 5,000 megawatts—essentially the same level recorded before privatisation.

He described the situation as “shameful” and a demonstration of how stagnated Nigeria has become. Ajaero issued a scorching indictment of the current power sector regime and called for an immediate and comprehensive review of the entire sector.

According to him, “We once again sound the alarm on the deplorable state of the nation’s electricity sector. We declare that the failed privatisation experiment has plunged Nigerian workers, women, youth, and industries into deeper energy poverty as the national grid continues to collapse while DisCos persistently reject loads from the Transmission Company.”

He added, “Instead of progress, we witness regression. Instead of light, we have darkness. The national grid collapses with the frequency of a faulty generator, sometimes plunging the entire nation into blackout. This is not the ‘turnaround’ we were promised; this is a well-orchestrated robbery of the Nigerian people.”

Ajaero condemned the band classification (A, B, C) as a capitalist tool designed to further impoverish the masses. He described the policy as a backdoor tariff hike that burdens citizens with cost-reflective billing without offering service-reflective delivery.

“Banding remains the institutionalisation of extortion of Nigerians by the rich. Band A consumers pay through their noses but still receive an epileptic power supply. This government is asking Nigerians to pay for darkness. We reject this segregation. Electricity is a right, not a commodity to be auctioned to the highest bidder while the poor are left in the dark.”

The NLC also questioned the rationale behind the Federal Government’s alleged plan to pay about three trillion naira to the GenCos, calling it a clandestine move to “settle the boys” as the 2027 elections approach. It insists that there is no justification for such a massive bailout to private firms that have failed to deliver.

“We insist that there is no justification for such a massive bailout to private firms that have failed to deliver. If this government is serious about the welfare of Nigerians, it must stop using our commonwealth to enrich a cartel of failed investors. Every kobo of the treasury belongs to the workers and people of Nigeria,” Ajaero stated.

The NLC stressed that electricity is not a luxury for the rich, but a social service essential for national development. It claimed that the private sector had failed, and that it was time to take back the power for the people.

“We therefore call for a People’s Power Roadmap. While acknowledging the new Electricity Act, which devolves power to the states, we warn that decentralisation alone is not a magic wand. Without a clear, national, and worker-centred roadmap, the bottlenecks will persist.”

The NLC demanded a National Stakeholders’ Summit to draft a Power Sector Roadmap that prioritises affordable and stable electricity for all. It called for a reversal of the failed privatisation model, service-reflective tariffs, and public investment in generation and transmission infrastructure.

Nigeria’s electricity crisis remains a longstanding issue, with frequent blackouts and inadequate power supply affecting daily life and economic growth. The country’s power generation capacity is struggling to meet demand, with an estimated 12,522MW installed capacity, but only around 4,200MW is generated daily.

The government has introduced reforms, including a $2.5bn plan to address the crisis, focusing on settling debts, upgrading infrastructure, and promoting a market-reflective tariff system. However, the NLC has declared its readiness to mobilise workers and the wider public to resist what it describes as further exploitation in the name of electricity reform.

Meanwhile, power firms have denounced the claims of exploitation of customers, stressing that the sector has been suffering from severe paucity of funds, which has adversely affected operations.

Recently, power generation companies under the aegis of the Association of Power Generation Companies urged the Federal Government to extend its proposed N3.6tn power subsidy payment plan beyond 2028, warning that the electricity sector’s liquidity crisis cannot be resolved within three years.


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