ITUC-Africa reacts to Nigeria’s plans to end electricity subsidy

Organised Labour through the International Trade Union Confederation, ITUC-Africa, has strongly criticised the Nigerian government’s plan to phase out electricity subsidies by 2027, warning that it will deepen economic hardship and exacerbate inequality for citizens.

This was as it called on Nigeria and other African governments to ensure that industrialisation translates into improved living standards for workers and ordinary citizens.

According to ITUC-Africa, economic growth must lift Nigerians and other Africans out of poverty rather than deepen inequality.

The General Secretary of ITUC-Africa, Akhator Joel Odigie, gave the reaction during his opening remarks at the New Energy for Africa 11 Convening: African Workers’ Contributions to Energy Sovereignty, Green Industrialization, and a Common African for COP31.

Odigie said industrialisation remains central to Nigeria and Africa’s liberation and development agenda but warned that it would be meaningless if it failed to improve the welfare of the continent’s people.

He faulted the plans by the Nigerian government to remove so-called subsidy on electricity in 2027, arguing that it is aimed at satisfying the Bretton Woods institutions such as the International Monetary Fund, IMF, and the World Bank.

According to him, such removal would worsen the poverty rate in Nigeria and regress any marginal progress towards industrialisation.

He added that subsidy removal will make electricity inaccessible to workers and the majority of the citizens.

He said, “As we speak now, Nigeria is talking of subsidy removal on electricity. The plan is not to satisfy or help Nigerians, but IMF, World Bank and other donor countries.

“The talk that subsidy is bad economics is a lie. All developed economies depended on public sector-driven electricity and not private sector.

“For us as Africans, industrialisation is central to our liberation and development.

“It is part of our aspiration to define our own identity and achieve shared prosperity through an industrialised Africa. Unfortunately, that vision has yet to be realised.

“We have also come to understand that lamenting our circumstances is not enough. Identifying the barriers to Africa’s development or pointing fingers at those who may be responsible does not move us forward.

“The more important question is: What next? What solutions can we pursue together?

“It is from that perspective that we confront the reality that more than 600 million Africans still lack access to electricity, while privatisation continues to deny many people affordable access to energy. This compels us to ask: What can we do differently?”

According to him, organised labour believes industrialisation can be achieved without worsening the climate crisis if governments, workers and development partners commit to energy justice.

Odigie noted that “When we speak about sustainable industrialisation, we are asking how Africa can industrialise without increasing environmental degradation or worsening the climate challenges our people already experience every day.

“We know this is possible. But it will require negotiation, compromise and genuine partnerships. It demands serious discussions on technology transfer, skills development and financing.”

He stressed that developing technical skills and mobilising investment for energy infrastructure are essential if Africa is to industrialise sustainably, saying “These are not impossible skills to acquire. With the right investment and commitment, Africa can build them.

“Equally important is access to finance and the resources needed to develop the infrastructure that will support sustainable industrialisation.

“An industrialised Africa has little meaning if it does not improve the lives of our people. Our vision is an Africa where prosperity is shared.

“We must reverse the growing phenomenon of the working poor. We must end the situation where women, children and older persons bear the greatest burden whenever governments attempt to balance national budgets.

“What does prosperity mean if ordinary people cannot enjoy a decent quality of life? A worker who returns home after a long day’s work should be able to switch on a fan during hot weather, watch television, listen to the news and spend meaningful time with family because electricity is available, reliable and affordable.

“If our people cannot enjoy these basic necessities, then what kind of prosperity are we really talking about?

“Energy justice means energy that is accessible, affordable and capable of improving people’s lives.”

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖