NLC Opposes N6tn GenCo’s Bailout, Proposes Energy Ministry Merger

The Nigeria Labour Congress (NLC) has proposed the merger of the Ministries of Petroleum and Power into a single Ministry of Energy as a long-term solution to Nigeria’s persistent electricity challenges.

The labour union also rejected the Federal Government’s proposed N6 trillion bailout for electricity generation and distribution companies (GenCos), describing it as ineffective and unsustainable.

NLC President Joe Ajaero made the position known in a statement issued over the weekend amid ongoing instability in the country’s power sector.

He argued that public funds should not be used to support what he described as underperforming private entities, referring to generation companies (GenCos) and distribution companies (Discos).

According to Ajaero, the proposed bailout would only offer temporary relief without addressing the structural issues plaguing the sector.

“The N6 trillion bailout will only treat the symptoms, not the root causes of Nigeria’s power crisis,” he said.

The labour leader further criticised the privatisation of the power sector, stating that it has failed to deliver reliable electricity to Nigerians.

As part of its recommendations, the NLC called for a comprehensive restructuring of the sector, beginning with the creation of a unified Ministry of Energy through the merger of the existing petroleum and power ministries.

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Ajaero said such a move would enable better coordination, improve resource management, and strengthen government oversight across the energy value chain.

“By merging the ministries, we take the first step toward de-commodifying energy and repositioning it as a public good,” he added.

He explained that a centralised energy structure would allow the government to mobilise public financing more effectively for investment in power generation, transmission, and distribution similar to models adopted by countries that have successfully expanded access to electricity and reduced poverty.

The proposal comes as Nigeria continues to grapple with erratic power supply, rising energy costs, and mounting pressure on both households and businesses.

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Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.

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