Stakeholders within Nigeria's economy are presenting varied reactions to the Nigeria Labour Congress's (NLC) recent proposal that suggests merging the Federal Ministry of Petroleum with the Federal Ministry of Power, thereby establishing a singular Ministry of Energy.
Reports from Daily Trust indicate that while some individuals perceive this proposal as an unnecessary step that won't effectively solve Nigeria's energy crisis, others consider it a constructive and beneficial suggestion.
In a recent statement, the NLC defended this merger by highlighting that for an extended period, these two essential ministries have functioned independently, catering to the interests of distinct elite groups while the foundation of the economy continues to deteriorate.
The NLC argued that the country's thermal power generation, which constitutes the majority of the national grid's capacity, is being hindered by a lack of gas supply. They noted that the petroleum sector controls this gas supply, functioning like an enclave driven by profit with no accountability to citizens' electricity needs.
They contended that establishing a unified Ministry of Energy is not merely an administrative adjustment but rather a political necessity to assert Nigeria’s sovereignty over its energy resources.
It further stated, "With a single ministry in place, there would be a single minister accountable to the Nigerian populace, eliminating the current scenario where officials engage in a blame game. Should power plants fail due to insufficient gas, the ministry responsible for petroleum extraction would be directly involved."
The NLC posited that this restructuring would terminate the trend where the Minister of Power points fingers at the Petroleum Minister, while the latter attributes issues to market dynamics and global instability.
They added, "This merger is a pathway to rationalise the sector focusing on public interest rather than private profit. It will provide a comprehensive framework for our energy resources, ensuring that gas, regarded as a national asset, is prioritized for domestic energy production to facilitate industrialization and job creation, instead of being flared off or exported while citizens face power shortages. This, we believe, will advance national energy planning crucial for the nation’s progress."
Kunle Stevenson, a public relations specialist and energy analyst, expressed to Daily Trust that the NLC's suggestion of merging the Petroleum and Power ministries into a single Ministry of Energy is both pragmatic and long overdue, marking a significant break from years of institutional fragmentation.
He mentioned that the majority of Nigeria's electricity—over 70-80%—is gas- fired, yet the policies concerning gas management lie within one ministry while power infrastructure and distribution are managed by another. This division creates ongoing conflicts concerning pricing, supply priorities, infrastructure development, and responsibility.
He stated, "A unified Ministry of Energy could lead to strategic alignment, expedited decisions, and integrated planning, especially regarding gas-to- power initiatives, expansion of transmission systems, and achieving a balance between base load and renewable energies."
However, he cautioned, "I am not suggesting that this merger is a cure-all. It serves as a structural adjustment, not a miracle solution. Without accompanying reforms—such as gas pricing that reflects actual costs, discipline in payment processes, aggressive measures to reduce distribution losses, and a clear national energy strategy—we risk creating a larger, more sluggish bureaucracy."
Stevenson applauded the NLC's call for a summit involving stakeholders to delve into the specifics, supporting the initiative in principle while emphasizing the importance of designing it with a strong commercial focus and private sector safeguards to prevent excessive centralization. He noted that if executed properly, it could revolutionize efforts to resolve the continuous blackouts.
Comrade Chinedu Bosah, the Coordinator of the Coalition for Affordable and Regular Electricity, also shared his thoughts with Daily Trust, asserting that the proposed merger of the petroleum and power ministries will not solve Nigeria’s ongoing power supply issues.
He elaborated that if integrated successfully, the merger could eventually help address the inconsistent electricity supply, provided it is accompanied by an expansive investment strategy aimed at enhancing critical power infrastructure, updating existing facilities, reversing problematic privatization practices, and establishing democratic oversight of management through participation from workers, experts, and consumers to ensure transparency and accountability.
In his view, Bosah stated, "In conclusion, merging these ministries without addressing underlying factors such as market economics, insufficient investment, corruption, and the sustainability of privatization will yield no benefits and may worsen the grim situation."
Tayo Adegbemile, the Director and Convener of PowerUp Nigeria, expressed that he believes the proposed merger would fail to meet its intended objectives.
He pointed out, "These are substantial ministries struggling to develop effective policies independently; thus, merging them would not necessarily indicate progress or resolve existing challenges. The merger alone does not guarantee gas availability for generation companies, so what is the point?"
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