Labour unions in Nigeria’s power sector have threatened a strike over potential job cuts by new investors. With the expiry of six-month contracts for thousands of workers, the unions warn that layoffs could worsen the electricity crisis in the south-south and south-west regions, jeopardizing the country’s power supply.
A looming strike in Nigeria’s power sector threatens to escalate the ongoing electricity crisis. Labour unions have voiced opposition to plans by power sector investors to lay off thousands of workers, warning that this could worsen the power supply issues in the south-south and south-west regions.
The unions assert that job cuts would exacerbate existing challenges in the sector, which has already suffered from inefficiencies and poor infrastructure. This situation follows the termination of around 47,000 employees after the privatization of the Power Holding Company of Nigeria (PHCN) in late 2013, when the successor companies were handed over to private investors.
Since then, the new owners have cited issues such as inadequate gas supply, insufficient workforce, and outdated equipment as key obstacles to improving service. With the six-month contracts of many workers set to expire on April 30, 2014, concerns over potential mass layoffs have reached a boiling point.
In response to the government’s order to reduce the workforce by about 20,000 ahead of the privatization, around 47,913 PHCN workers were laid off. Despite this, the new investors were contractually obligated to keep certain employees in place to maintain operations and prevent further collapse of the system. If these job cuts proceed, the unions have warned that a strike could disrupt power supply, further hampering Nigeria’s energy sector.
