NLC rejects TCN privatisation, demands policy reversal

The Federal Government's proposed plans to restructure the Transmission Company of Nigeria have been met with opposition from the Nigeria Labour Congress.

The proposed privatisation plan of TCN would bring great danger to the power sector and hold great fear and trepidation for major stakeholders within the sector, according to a communiqué signed by Joe Ajaero, President of NLC.

"If power sector policies were not reversed by the Federal Government, they would create deeper consequences and replicate the mistakes made by previous administrations," Ajaero stated.

"It jeopardises the state's capacity to oversee, consistently regulate, and ensure the security of the country's grid system.”
The Federal Government, through the Bureau of Public Enterprises, announced plans on Tuesday to sell 40% of the government's stake in electricity distribution companies on the capital market in 2024, according to a story in The PUNCH.

In keeping with the Electricity Act, the government also announced that it was unbundling the TCN.

The NLC president claims that aside from the increased suffering the exercise caused for the Nigerian people and the economy, these same stories that Nigerians have heard over the years have largely produced no notable results.
He went on to say that the intended restructuring was intended to set up the TCN for eventual takeover by the ruling elite's cronies and lackeys.

"With regard to the policy direction his Minister of Power is attempting to pursue in his attempt to unbundle TCN for privatisation, NLC feels that the President is repeating the mistakes of past administrations," the statement read.
According to Ajaero, the NLC had assumed that the President would have called a legitimate national stakeholders' forum to examine the privatisation process in the industry, which the government acknowledged had fallen short of all of its primary goals.

The catastrophe he predicted for the country's power industry would have multiple dimensions.

The effort to eventually turn over the transmission infrastructure would make the country more vulnerable to extortion and make it harder for the industry to transmit and distribute power across the nation. Privatisation will lead to the same kind of crisis that currently plagues the Gencos and Discos and will affect the standard of service that the Power sector provides to Nigerians.
"We voiced our opposition to a country that was determined to end its own life in the electricity industry ten years prior, as well as the potential negative effects of privatisation on the industry and Nigerians, but our concerns went unanswered," he said.

Ajaero claims that although tariffs have increased by 500%, Nigerians' access to services has not improved.
Because no substantial investment was made by the people who purchased the GENCOs and DISCOs through proxies, the power sector is still stagnant. We are clearly determined to continue down the same path, as evidenced by the regrettable consequences of yesterday's mistakes, which we are currently experiencing," he asserted.

The NLC President claims that banks have taken over the power industry as a result of proxy

He clarified, "The government's plans will worsen the nation's power sector and have significant negative effects on the overall economy and socio-economic condition, especially given Nigeria's current status as a leader in power poverty."