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NLC Urges Federal Government to Merge Power and Petroleum Ministries

The Nigeria Labour Congress (NLC) has called on the Federal Government to consolidate the Ministries of Power and Petroleum Resources into a single Ministry of Energy as part of efforts to address persistent inefficiencies in Nigeria’s energy sector.

The labour union said the current structure has created coordination gaps that continue to undermine power generation, particularly in the area of gas supply, which remains a critical input for electricity production in the country.

According to the NLC, the separation of policy oversight between the power and petroleum sectors has contributed to operational disconnects that affect planning, execution and accountability across the energy value chain.

The union argued that a unified structure would improve alignment between gas production, supply and utilisation for power generation.

Nigeria relies heavily on gas-fired plants for electricity generation, making the relationship between upstream gas supply and downstream power delivery essential to achieving stable output.

However, recurring shortfalls in gas availability have continued to limit generation capacity despite installed infrastructure.

The NLC noted that a single ministry would enhance policy coordination and provide a central framework for managing energy resources more efficiently.

By bringing both sectors under one administrative structure, the government would be better positioned to streamline decision-making processes and reduce bureaucratic delays that have historically slowed progress in the industry.

The proposal also reflects growing concern among stakeholders about the fragmented governance of Nigeria’s energy sector, where overlapping responsibilities and inconsistent policy execution have hindered long-term development.

Analysts say the recommendation aligns with global best practices in some jurisdictions where integrated energy ministries oversee the full spectrum of energy resources, including oil, gas and electricity. Such models are often designed to ensure coherence in policy direction and improve operational efficiency.

For Nigeria, the move could have broader implications beyond power generation. Improved coordination between gas supply and electricity production could enhance industrial productivity, reduce energy costs for businesses and support economic growth.

The manufacturing sector, which has long struggled with unreliable power supply, stands to benefit from any reforms that lead to more consistent electricity generation.

Lower energy disruptions could translate into improved output levels and reduced reliance on alternative power sources such as diesel generators.

However, experts caution that structural changes alone may not be sufficient to resolve the sector’s challenges. Effective implementation, regulatory discipline and sustained investment in infrastructure will be critical to achieving meaningful results.

The NLC’s position adds to ongoing discussions around energy sector reform in Nigeria, as the government continues to explore solutions to longstanding issues affecting power generation and distribution.

With demand for electricity rising alongside population growth and industrial expansion, the need for a more coordinated and efficient energy framework is becoming increasingly urgent.

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