The Nigeria Labour Congress (NLC) has vehemently opposed the proposed restructuring and privatization plans for the Transmission Company of Nigeria (TCN) by the Federal Government, raising serious concerns about the ramifications for the power sector.
In a communiqué signed by NLC President Joe Ajaero, the NLC expressed deep apprehension over the intended privatisation strategy for TCN, citing potential threats to the sector’s stability and the safety of stakeholders within it.
Ajaero stressed that these power sector policies risk repeating past mistakes and could escalate into more significant consequences if not reversed by the Federal Government, warning that it jeopardizes the government’s ability to regulate and ensure the safety of the nation’s grid system.
He said, “NLC believes that the President is making the same mistake previous administrations have made with the policy direction his Minister of power is trying to follow in seeking to unbundle TCN for privatisation.
“The intended power sector policies would create the same mistakes past administrations made and it would create deeper consequences if power sector policies were not reversed by the Federal Government.
“It imperils the ability of the state to control, always regulate and guarantee the safety of the nation’s grid system.”
It would be recalled that the federal government recently announced plans to divest 40% shares of government-owned electricity distribution companies in the capital market by 2024, alongside the TCN’s unbundling, aligning it with the Electricity Act.
Expressing dissatisfaction with these developments, Ajaero pointed out the perceived ulterior motive behind the restructuring, hinting at preparations for TCN’s eventual takeover by affiliates of the ruling elite.
“The quest to ultimately hand over the transmission infrastructure would expose the nation to blackmails and weaken the ability of the sector to transmit and distribute power around the country. Privatising it will create the same crisis prevailing within the Discos and Gencos and will impact the quality-of-service deliverance by the Power sector to Nigerians.
“We protested against a nation that was hell-bent on committing suicide in the power sector 10 years ago, alongside the consequences that privatisation exercise was going to be for the power sector and for Nigerians, but it was not heeded,” he noted.
The NLC criticized the lack of a comprehensive national stakeholders’ forum to review the failed privatization exercise in the power sector, emphasizing that previous privatization efforts yielded minimal results, only amplifying suffering for Nigerians and the economy.
Ajaero underscored the multifaceted disaster such policies could usher in, predicting potential blackmail, weakened transmission infrastructure, and an exacerbation of existing crises within the power sector akin to those experienced by Discos and Gencos.
He lamented the lack of significant improvements in service despite a 500% tariff increase, attributing the stagnation in the power sector to insufficient investments by those who acquired GENCOs and DISCOs through intermediaries.
Ajaero furthercautioned that such plans, especially considering Nigeria’s power poverty status, could severely worsen the power sector, leading to substantial adverse effects on the overall economy and socio-economic conditions.
“The power sector remains stagnant as no significant investment was made by those who bought the GENCOs and DISCOs through proxies. What we are reaping today are the unfortunate outcomes of the errors of yesterday and it is obvious that we are bent on going the same route.
“The government’s plans, especially given Nigeria’s current status as a power poverty leader, will worsen the nation’s power sector and have significant negative effects on the overall economy and socio-economic condition.”
