NLC raises alarm over power sector crisis, rejects N6tn bailout for GENCOS

March 23, 2026
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The Nigeria Labour Congress (NLC) has expressed deep concern over the persistent crisis in Nigeria’s power sector, describing the situation as a heavy burden on workers, manufacturers, and the general public who continue to suffer from poor electricity supply despite repeated tariff increases.

In a statement issued yesterday, the President of the NLC, Joe Ajaero, accused operators in the electricity value chain, particularly distribution companies and generation companies, of benefiting from government subsidies and tariff hikes while ordinary Nigerians continue to experience poor power supply across the country.

According to Ajaero, the nation’s power sector has become a major problem for Nigerian workers, as many households and businesses are forced to spend heavily on alternative sources of power such as generators due to unreliable electricity supply. He said this situation has increased the cost of living and reduced the disposable income of workers.

He criticised the distribution companies (DisCos) and generation companies (GenCos), accusing them of prioritising profits over service delivery. According to him, despite receiving various forms of government support over the years, including subsidies and tariff adjustments, the companies have not significantly improved power supply to justify the financial support they continue to receive.

Ajaero used strong words to describe the situation, stating that the power sector has become a “perpetual millstone” around the necks of Nigerian workers, while what he described as “crony-capitalist allies” in the DisCos and GenCos continue to benefit from public funds without delivering reliable electricity to citizens.

The labour union also rejected the proposed N6 trillion bailout for the generation companies, describing it as a temporary solution to a deeply flawed system. The NLC argued that previous bailouts and financial interventions in the power sector did not lead to significant improvements, and therefore another bailout would only repeat the same cycle without solving the root problems in the sector.

The union called on the Federal Government to carry out a comprehensive review of the power sector, including the privatisation process that transferred power generation and distribution to private companies. The NLC said the government must ensure that any company operating in the sector has the technical and financial capacity to deliver stable electricity to Nigerians.

The statement also highlighted the impact of the power crisis on manufacturers and small businesses. Many companies, especially small and medium-scale enterprises, spend a large portion of their operating costs on fuel for generators. This has led to increased production costs, which are often passed on to consumers in the form of higher prices for goods and services.

Economic analysts say Nigeria’s unreliable power supply remains one of the biggest challenges facing the country’s industrial growth and economic development. Without stable electricity, industries cannot operate at full capacity, and investors are often discouraged from investing in the country.

The NLC warned that the continued failure of the power sector could lead to job losses, business closures, and further economic hardship for Nigerian workers. The union therefore called for transparency, accountability, and a clear reform plan that will prioritise service delivery rather than profit-making.

The labour body also urged the government to involve workers’ representatives and other stakeholders in discussions about power sector reforms, stressing that electricity is a critical national infrastructure that affects every sector of the economy and the daily lives of Nigerians.

As debates continue over the proposed bailout and the future of Nigeria’s power sector, many Nigerians are hoping for lasting solutions that will finally address the long-standing electricity problems in the country. For workers, manufacturers, and ordinary citizens, stable electricity remains not just a convenience, but a necessity for economic survival and national development.

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