The Nigeria Labour Congress (NLC) has again criticised the demand by power generation companies (GenCos) for the payment of ₦6 trillion in outstanding debts, describing the move as a “brazen attempt to loot the public treasury.”
NLC had earlier kicked against plans by the Federal Government to settle debt owed to GenCos, arguing that the arrangements lack transparency and accountability and are of no value to the Nigerian people.
In response, the Association of Power Generation Companies (APGC) issued a statement on Wednesday, February 18, accusing NLC of lacking an understanding of the power sector and of how the debt had accumulated over time.
However, the NLC fired back, rejecting the claim that it lacked understanding of the power sector.
In a statement issued on Thursday, February 19, titled “The Clandestine N6 trillion Naira Demand is a Heist,” NLC President Joe Ajaero dismissed the claims by APGC and opposed a reported government plan to grant a ₦3 trillion bailout to the firms.
The labour union said it stands by every word in its initial press release, maintaining its position that the privatization of the power sector more than a decade ago has not yielded any fruit.
NLC said the APGC needs to explain to Nigerians why, after buying the entire power assets for around ₦400 billion, GENCOS are today demanding ₦6 trillion, not even the ₦3 trillion the Federal Government is reportedly proposing to pay.
The union said it is troubling that the GenCos have failed to increase generation capacity more than a decade after privatization, yet are demanding a bailout of over ₦6 trillion. He pointed out that power generation has remained stagnant at 4,000 to 5,000 megawatts—the same level as before privatization—despite tariffs increasing by over 500 per cent.
“The entire power sector assets were sold for about Four Hundred Billion Naira (N400 billion). Yet, we are now told that the Federal Government is contemplating a bailout of Three Trillion Naira (N3 trillion) for the very same GENCOs who have failed to generate additional megawatt above pre-privatisation installed capacity,” AJaero stated.
READ ALSO:
- Power Sector: Debt to GenCos Now at ₦6.5trn – APGC CEO Insists
- GenCos Slam NLC Over ‘Political Settlement’ Claims, Defend ₦6trn Debt Recovery
- GenCos Debts: Geregu, Niger Delta Power, Others Reach Settlement Agreement as FG Issues ₦501bn Bond
- Nigeria Targets Zero Fuel Imports as ₦6 trn Saved in 9 Months
- Dangote Urges FG to Resolve Power Challenges to Boost Industrial Growth
The union described the proposed debt settlement as “a clandestine scheme to transfer an additional three trillion Naira of public wealth; money belonging to workers, pensioners, and the masses into the pockets of a handful of speculators. They call it business, but we call it HEIST.”
Demand for Transparency
While alleging unwholesome affiliation between the buyers of the power assets and the sellers (those at the corridors of power), the NLC dared the APGC to publish the full list of the beneficial owners of the GenCos so Nigerians can know who is making the demand.
The union pointed out that it is not a visitor to the sector, adding that its members are the workers in the power plants.
The labour union recalled its active role in the struggle against what it considered flaws in the privatisation process.
It said its warnings about ensuring proper safeguards were ignored and the outcome is the failure to meet the privatisation goal of increasing generation, transmission and distribution capacity.
Regarding its use of the phrase “settle the boys” in the previous statement to describe the proposed payment to the GenCos by the government, NLC said it remains apt given the current political drama in Nigeria, maintaining that the public coffers must not be used to settle a select few to the detriment of many Nigerians under the guise of intervention.
“For the avoidance of doubt, and in the interest of transparency, the NLC dares the APGC to publish a full and comprehensive list of the beneficial owners of all GENCOs and other power assets. Let Nigerians see the faces of those demanding this N6 trillion. Though it is public knowledge that power flows to those connected to the corridors of power, we demand that you make it official,” NLC told APGC.
The union emphasized the need for transparency and accountability in the distribution of public finances, adding that Nigerians have the right to know.
It accused the companies of carting away billions of naira through tariff hikes, while presiding over infrastructural decay in the power sector. “This is not business; this is the last act of a continuing heist; a cash out at the expense of Nigerians. This is not patriotic; it is parasitic.”
While accusing GenCos of not being patriotic, the NLC alleged that they have failed to pay dividends to the government (which holds about 40 per cent equity), violate workers’ rights and withhold check-off dues.
The union further said the move by the Presidency to remove Aso Rock Villa from the national grid and generate its own electricity is proof that the power sector has failed.
NLC maintained its position that the state must return as the primary driver of the power sector, stressing that electricity should be treated as “a social service, not a commodity to be auctioned to the highest bidder.”
“We reject the impudent demand for N6 trillion, and this planned N3 trillion bailout. We reject the failed privatisation model. The Nigerian people cannot and will not continue to pay for darkness,” NLC added.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
