NLC Calls For Merger Of Power And Petroleum Ministries To Fix Nigeria’s Energy Crisis

The Nigeria Labour Congress has called on the Federal Government to merge the Ministries of Power and Petroleum Resources into a single Ministry of Energy as part of efforts to address Nigeria’s persistent electricity challenges.

The union said such a move would help resolve the long-standing issues affecting thermal power generation, particularly the inadequate gas supply that continues to disrupt electricity production across the country.

In a statement issued on Sunday, NLC President Joe Ajaero expressed deep concern over the stagnation in the power sector, noting its negative impact on manufacturing and overall national development.

The NLC argued that the country’s energy challenges go beyond temporary fixes, describing recent proposals such as the ₦6 trillion bailout for power generation companies as insufficient to address deeper structural problems.

“Therefore, we are proposing a radical structural intervention: the immediate merger of the Federal Ministry of Petroleum and the Federal Ministry of Power to create a single, unified Ministry of Energy.

“For too long, these two critical ministries have operated in silos, serving the interests of separate fractions of the bourgeoisie while the productive base of our economy collapses.

“This gas is controlled by an industry; the Petroleum sector; that operates like a rent-seeking enclave with no accountability to the people’s need for electricity”, the Union noted.

The union criticised the current system, arguing that gas resources are often prioritised for export rather than domestic electricity generation.

“This functional dependency is a design flaw that serves the primitive accumulation of capital. The Petroleum Ministry prioritizes the profits of International Oil Companies (IOCs) and local moguls, while the Power Ministry is left to explain to Nigerians why the grid collapses because the gas pipelines are empty or vandalized by those who profit from the importation of diesel and generators.

“The NLC demands the creation of a unified Ministry of Energy to break these compartmentalised fiefdoms. This is not a mere administrative tinkering; it is a political demand to assert national sovereignty over our energy resources.

“Under a single ministry, there would be one minister accountable to the Nigerian people, not a collection of officials playing the blame game. When the power plants are down due to lack of gas, the same ministry responsible for petroleum extraction would be directly implicated

“This would end the era where the Power Minister blames the Petroleum Minister, and the Petroleum Minister blames “market forces” and “global volatility.”

The NLC described the proposed merger as a pathway to restructuring the energy sector in the public interest rather than for private gain.

“It will facilitate; A holistic view of our energy assets, ensuring that gas; a national heritage; is first and foremost used to generate domestic power to industrialize the nation and create jobs, rather than being flared or exported while Nigerians suffer in darkness. This we are sure will enhance a national Energy planning which is key to national development.

“It will allow Nigeria price electricity fairly by ending the “Cost-Reflective” model. As we know already, the current regime forces Nigerians to pay for the inefficiency and greed of private investors. A unified Ministry would prioritize service-reflective tariffs as service delivery becomes the Ministry’s main driver. This way, we ensure that workers and Nigerians pay fair rates for actual service, not costs imposed by inefficiencies and greed.”

The labour union reiterated that electricity should be treated as a basic right rather than a profit-driven commodity, criticising the outcomes of the 2013 power sector privatisation.

“By merging the Ministries, we take the first step toward de-commodifying energy. We move towards a system where the State, through a coordinated Ministry of Energy, can mobilize public finance for investment in generation, transmission, and distribution, just as it is done in nations that have lifted their citizens out of poverty”.

The NLC also urged the Federal Government to halt the proposed bailout for power generation companies and instead initiate broader reforms.

“Our commonwealth cannot be used to settle a cartel of failed investors; convene a genuine National Stakeholders’ Summit to draft a People’s Power Roadmap that prioritizes public ownership, energy security, and the welfare of Nigerian workers and masses.

“The working class and the people of Nigeria cannot continue to be hostages to the artificial scarcity created by the decapitation of our national resources. We demand that the government treat our energy as a unified whole, managed for the benefit of the many, not the greed of the few.

“When workers and the broader citizenry are in darkness, the economy is paralyzed. It is time to unite the ministries, unify the vision, and take back the power sector for our nation!”


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