• Says privatisation robbing Nigerians
• House laments poor power supply despite huge investments
THE Nigeria Labour Congress (NLC) has fired back at the Association of Power Generation Companies (APGC), rejecting the proposed N6 trillion demand bailout by Generating Companies (GenCos) and the proposed N3 trillion Federal Government bailout, insisting that the move served as a conduit pipe to syphon public funds.
This was as the House of Representatives ad hoc committee investigating power sector reforms, and expenditures from 2006 to 2024 said, despite billions of naira injected into the power sector by the government through the Central Bank of Nigeria (CBN) and other intervention mechanisms, Nigerians had yet to see commensurate improvement in electricity supply.
The NLC, which rejected the bailout, alleged that the arrangements lack full public scrutiny, accountability and demonstrated value to the Nigerian people, with a strong stand that Nigerians could not and should not continue to pay for darkness.
NLC President Joe Ajaero, yesterday, reacted to a recent release by the APGC accusing Labour of lacking the competence to understand the power sector and attempted to justify what it considered a brazen attempt to extract unjustifiable public funds.
Ajaero said it was troubling that, after the entire power sector’s assets were reportedly sold for approximately N400 billion, GenCos today demand N6 trillion, while the Federal Government is reportedly considering a N3 trillion bailout for companies that have not demonstrably increased generation capacity beyond pre-privatisation levels.
“This contradiction raises fundamental questions. How can assets purchased for N400 billion become the basis for a bailout running into trillions of naira? It is neither sound economics nor responsible governance to socialise losses while privatising profits. Public funds belonging to workers, pensioners and ordinary Nigerians must not be diverted to rescue private investors from the consequences of their own operational shortcomings. We challenge the APGC to address this contradiction transparently,” he said.
He recalled how the NLC played a leading role in the national debate around privatisation and consistently warned that, without proper safeguards and capacity, the exercise would fail.
Regarding its reference to “settling the boys”, the NLC said its position remained clear: Public funds must not be used to enrich a select few under the guise of policy intervention. Nigerians deserve transparency and accountability, not opaque financial arrangements.
It asserted: “In the interest of openness, we call on the APGC to publish a comprehensive list of the beneficial owners of all GenCos and associated power assets. Nigerians have a right to know who stands to benefit from this N6 trillion demand.
“Since assuming control of these assets, what is the highest megawatt (MW) output generated and delivered to the national grid? Has average generation not largely stagnated between 4,000 and 5,000 MW, comparable to pre-privatisation levels? Which core objectives of privatisation—improved generation, transmission and distribution—have been demonstrably achieved?
“The promise of privatisation included technical expertise, foreign direct investment, improved efficiency, and expanded generation capacity. Nigerians were assured of stable electricity. Instead, the country continues to grapple with unreliable supply, rising tariffs, and mounting sectoral debt.”
THE ad hoc committee also expressed concern about the continued arbitrary use of estimated billings and the slow rollout of prepaid meters nationwide.
The lawmakers, who expressed their displeasure during an oversight visit to the headquarters of the Abuja Electricity Distribution Company (AEDC), also indicted the company for what it described as unfair treatment to states under its purview, allocating 80 per cent of power supply to the Federal Capital Territory (FCT) alone to the detriment of Niger, Kogi and Nasarawa states.
The committee also queried AEDC over loans and intervention funds reportedly obtained from the Federal Government following the privatisation of the power sector 13 years ago.
Al-Mustapha Aliyu criticised what he described as a discriminatory electricity distribution policy allegedly being implemented by AEDC, allocating 20 per cent of the power supply received by the company to Niger, Kogi and Nasarawa states.
Aliyu emphasised said every state within a DisCos coverage area deserves equitable treatment, stressing that electricity supply should not be determined solely by revenue considerations, especially in a sector that has benefitted from substantial public funding and federal intervention. (Guardian)
