NLC Opposes Federal Government's N3 Trillion Bailout for Power Generating Firms

The Nigeria Labour Congress (NLC) has taken a stand against the federal government's intention to provide a bailout of N3 trillion to privately owned electricity generation companies, which is part of the government's strategy to tackle the ongoing power supply shortcomings in Nigeria.

In a statement issued by its president, Joe Ajaero, the NLC emphasized that the government must reclaim its role as the primary operator in the power sector.

The labor organization has criticized the proposed bailout for the generating companies, labeling it both economically unwise and internally contradictory.

The NLC pointed out that the entirety of the power sector was sold for just about N400 billion, highlighting the inconsistency in the government's plan to now consider a bailout of N3 trillion for these GENCOs, which have not managed to increase their output beyond what was available before privatization.

Furthermore, the NLC dismissed the response from the Association of Power Generation Companies (APGC) as a self-serving commentary and a misrepresentation of the valid requests made by organized labor.

"We firmly reject the flawed privatization model. Electricity is a public service, not a commodity to be sold to the highest bidder. We also reject their outrageous demand for N6 trillion, along with the proposed N3 trillion bailout. The Nigerian populace cannot, and will not, continue to finance a lack of power supply," the NLC stated.

In its remarks, the NLC accused GENCO operators of colluding with those behind the privatization of power assets to exploit the Nigerian population through an obscure privatization methodology.

Responding to an APGC press statement dated February 17, 2026, which claimed that the NLC lacked expertise in the power sector, the labor group accused the association of attempting to defend what is plainly a blatant attempt to misappropriate public funds.

"We totally reject their self-serving narrative and denounce their misleading portrayal of our legitimate demands. The NLC reiterates its commitment to every point made in our original press release. The privatization of the power sector has been a grand deception and a systematic theft from the Nigerian people," the NLC asserted.

The organization added that the APGC's complaints regarding "victimization" cannot conceal the pervasive failure that has enveloped the sector since its privatization.

"The APGC must explain to Nigerians how they acquired the entire power assets for approximately N400 billion, yet GENCOs alone are now requesting N6 trillion, as the APGC itself acknowledges, not even the N3 trillion the federal government intended to provide!"

Moreover, the NLC pointed out that the APGC's statement conveniently avoids discussing significant contradictions at the center of this issue. While the APGC speaks of pending payments, the NLC stressed the need to address the disturbing reality of exploitation in the sector.