LAGOS, Nigeria – The President of the Nigeria Labour Congress, Joe Ajaero, stated on Monday, May 18, 2026, that the privatisation of the electricity network has failed to increase generation capacity beyond 4,000 megawatts.
Okay News reports that Joe Ajaero described the power sector privatisation as a scam during an interview regarding electricity distribution and infrastructure. He said the original intent of unbundling the Power Holding Company of Nigeria was to divide the system into multiple entities rather than to improve generation or transmission capabilities.
“The unbundling and privatisation were not meant to increase capacity,” Ajaero said. “The plan was simply to divide the system so that you would have 20 managing directors and several executive directors, all being serviced from the same 4,000 megawatts.”
Local financial institutions have assumed control of eight or nine distribution companies because the original buyers defaulted on loans used to acquire the facilities. Ajaero said the power assets were sold for approximately 400 billion naira (266.6 million USD). He said the Federal Government of Nigeria currently spends nearly six trillion naira (4 billion USD) on subsidies, compared to the 50 million naira (33,333 USD) to 100 million naira (66,666 USD) it spent before privatisation.
Ajaero called for a diversified energy mix, including the utilisation of coal deposits and hydroelectric projects. He referenced the Zungeru facility, which can generate 900 megawatts, and said combining hydro and coal could produce 5,000 megawatts. “In Nigeria, we have no coal-fired power plants despite our large coal deposits,” he said.
Nigeria’s President, Bola Tinubu, recently appointed Joseph Tegbe as Power Minister and named Rilwan Lanre Babalola as Special Adviser on Power. Babalola is the chairman of the Presidential Task Force on Power Sector Reset and Restoration.
