Over 30 Companies Licensed for Power Plants in Nigeria Fail to Generate Electricity

Joe Ajaero, the President of the Nigeria Labour Congress (NLC), has raised serious concerns regarding the crisis in Nigeria’s power sector. During the 21st Trust Dialogue in Abuja, Ajaero highlighted a major issue where more than 30 companies were granted licenses to build power plants in 2005, yet not a single watt of power has been generated from these ventures.

Ajaero expressed disappointment in the government’s approach to privatization of the power sector, which was initiated under President Jonathan and remained unaddressed during President Buhari’s tenure. According to him, these companies were expected to borrow money from banks to fund their operations, a strategy that has proven ineffective.

The situation in the power sector has been further complicated by the lack of transparency in ownership. Ajaero pointed out that the real owners of the power sector are shrouded in mystery, with suggestions that proxies might be in control. This lack of clarity in ownership and the failure of licensed companies to produce electricity have been contributing factors to the power crisis in Nigeria.

Furthermore, Ajaero criticized the first three policies introduced by President Tinubu’s administration, stating that they have added to the burdens of Nigerians. He emphasized the need for a holistic review and a conscious plan by the Tinubu government to move the country forward in terms of power generation and distribution.

This situation poses a significant challenge to the Nigerian government in its efforts to resolve the longstanding power supply crisis in the country. Ajaero’s comments reflect the growing frustration among stakeholders and the general public over the inability to effectively address and manage the power sector’s challenges.

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