NLC Pushes for Unified Energy Ministry, Rejects ₦6 Trillion GENCO Bailout

NLC Pushes for Unified Energy Ministry, Rejects ₦6 Trillion GENCO Bailout

The Nigeria Labour Congress (NLC) has renewed its call for far-reaching reforms in Nigeria’s energy sector, urging the Federal Government to merge the Ministry of Power and the Ministry of Petroleum Resources into a single Ministry of Energy as part of efforts to address the country’s persistent electricity crisis.

In a statement signed by NLC President Joe Ajaero, the labour union described the current structure of Nigeria’s energy governance as fragmented and inefficient, arguing that it has contributed to decades of underperformance in power generation, electricity distribution, and energy management.

The NLC also rejected the proposed ₦6 trillion bailout for power generation companies (GENCOs), describing it as a short-term fix that fails to address the deeper structural problems plaguing the sector. According to the union, repeated financial interventions without systemic reform risk perpetuating inefficiencies and rewarding poor performance.

The union maintained that Nigeria’s energy challenges are interconnected, particularly in the area of gas supply, which is critical to thermal power plants that generate a significant portion of the country’s electricity. It argued that separating power and petroleum oversight into different ministries creates coordination gaps that hinder effective planning and implementation.

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By advocating for a unified Ministry of Energy, the NLC said government would be better positioned to coordinate policies across the entire energy value chain—from upstream petroleum production to electricity generation and distribution—under a single institutional framework.

The labour body further argued that a consolidated ministry would improve accountability by ensuring that one authority is responsible for outcomes in the sector, rather than the current situation where responsibilities are divided and often result in blame-shifting between agencies.

The NLC also emphasized the importance of prioritizing domestic energy needs, stating that Nigeria’s abundant gas resources should be directed primarily toward powering industries and households rather than being exported or underutilized. It added that better utilization of these resources would support industrial growth, job creation, and broader economic development.

On electricity pricing, the union criticized the current tariff structure, particularly the cost-reflective tariff model, arguing that it places an unfair burden on consumers. It called for a more balanced approach that ensures Nigerians pay fair rates for actual service delivery rather than inefficiencies within the system.

The NLC also expressed concern over what it described as the failure of Nigeria’s electricity privatization model introduced in 2013. It argued that the privatization of the power sector has not delivered the expected improvements in reliability and access, citing persistent outages, infrastructure deficits, and high costs.

In addition, the union called for the suspension of the proposed GENCO bailout and urged the Federal Government to instead convene a national stakeholders’ summit. The proposed summit, according to the NLC, should focus on developing a comprehensive energy reform roadmap that prioritizes public interest, transparency, and sustainable investment in power infrastructure.

Nigeria’s power sector continues to face major challenges, including inadequate generation capacity, weak transmission networks, frequent grid collapses, and inconsistent gas supply. These issues have contributed to unreliable electricity access for millions of households and businesses across the country.

The NLC maintained that a unified approach to energy governance would help streamline decision-making, improve efficiency, and strengthen long-term planning. It insisted that energy should be treated as a critical public resource essential to national development rather than a purely commercial commodity.

The union concluded by urging the Federal Government to act decisively in restructuring the sector, warning that without bold reforms, Nigeria’s energy crisis will continue to hinder economic progress and worsen living conditions for citizens.

NLC Pushes for Unified Energy Ministry, Rejects ₦6 Trillion GENCO Bailout