The Nigeria Labour Congress (NLC) and the National Union of Electricity Employees (NUEE) have fiercely rejected allegations by former Power Holding Company of Nigeria (PHCN) manager, Mele Igolo, accusing NLC President Joe Ajaero of betraying 47,000 electricity workers during the 2013 privatisation of the power sector.
In a strongly worded response, the labour organisations described the allegations as “false, malicious and politically motivated,” insisting that the real scandal in Nigeria’s electricity industry was not the conduct of organised labour but the controversial privatisation that transferred public assets into private hands while billions of naira in public funds continue to be poured into the struggling sector.
The unions accused Igolo of attempting to rewrite history and smear Ajaero’s reputation more than a decade after the privatisation exercise, alleging that his claims were part of a coordinated effort to weaken organised labour because of its continued criticism of the power sector reforms.
According to the NLC, the sale of PHCN was a Federal Government policy over which labour had no control. It said the responsibility of organised labour was to negotiate the best possible compensation for workers and protect their interests throughout the exercise.
The Congress dismissed Igolo’s account of the negotiations, explaining that workers were represented by three recognised unions—the National Union of Electricity Employees (NUEE), the Senior Staff Association of Electricity and Allied Companies (SSAEAC), and the electricity sector of the Nigeria Union of Pensioners (NUP).
The unions stressed that Joe Ajaero served as General Secretary of NUEE during the negotiations and was not the president of any of the negotiating unions, contrary to the impression created by the former PHCN manager.
Describing Igolo’s allegations as evidence of “fundamental ignorance of labour processes,” the NLC maintained that the negotiations produced one of the most generous severance packages ever secured for workers in any government privatisation exercise in Nigeria.
The labour organisations also rejected claims that union leaders diverted the 10 per cent equity shares allocated to former PHCN workers.
They explained that although the equity arrangement was secured through collective bargaining, it was never intended to be distributed free of charge.
According to NUEE, the Bureau of Public Enterprises (BPE) recently informed the union through its legal representatives that the issue had been referred to the Nigerian Stock Exchange process, through which eligible former workers would purchase their allotted shares.
The unions equally dismissed allegations concerning the Federal Government’s 7.5 per cent pension contribution.
They explained that before the privatisation exercise, PHCN employees were not enrolled under the Contributory Pension Scheme, making it necessary for labour to negotiate a lump-sum government contribution into workers’ Pension Fund Administrators.
According to the union, it is from that negotiated contribution that former workers, including Igolo himself, currently receive their monthly pensions.
On the issue of the alleged 16 months’ unpaid salaries, the NLC and NUEE acknowledged that salary arrears formed part of a comprehensive agreement signed with the Federal Government in 2012.
They said the agreement covered eight unresolved issues, including salary arrears, gratuities, death benefits, equity shares, post-retirement training and non-core assets, while another agreement signed in 2019 reaffirmed the government’s commitment to implementing those obligations.
However, the unions blamed the Bureau of Public Enterprises for frustrating implementation through delays and prolonged legal disputes, forcing organised labour to repeatedly threaten nationwide industrial action, including shutting down the national electricity grid, to compel compliance.
The labour organisations also dismissed allegations that more than ₦400 billion belonging to former PHCN workers had been diverted.
According to them, the amount represented severance and death benefits paid directly to disengaged workers and not funds handled or controlled by union leaders.
The unions cited figures released by the Bureau of Public Enterprises showing that about ₦409.9 billion was paid directly to eligible workers as their lawful entitlements.
They challenged Igolo to publicly disclose how much he personally received from the exercise and produce documentary evidence to support any claim that his outstanding benefits remain unpaid.
Turning the spotlight on the electricity industry, the NLC argued that the real issue deserving national attention was the enormous public funds allegedly committed to sustaining the privatised power sector despite years of poor electricity supply.
The Congress maintained that successive governments had reportedly spent trillions of naira supporting private electricity companies while Nigerians continued to endure unstable power supply and rising electricity tariffs.
According to the unions, this represents the real scandal in the power sector and one they have consistently exposed over the years.
The labour bodies also questioned why Igolo waited more than 13 years after receiving his exit package before making the allegations.
They alleged that throughout his years in PHCN management, the former official never belonged to any trade union and was openly opposed to organised labour, making his sudden posture as a defender of workers difficult to believe.
The NLC further alleged that unnamed interests opposed to organised labour were sponsoring the accusations to undermine the credibility of its leadership because of its consistent opposition to policies it considers harmful to Nigerian workers.
Reaffirming its commitment to protecting workers’ rights, the Congress urged electricity workers and Nigerians not to be distracted by what it described as a calculated smear campaign.
It vowed to continue demanding justice for former PHCN employees while sustaining its campaign for an electricity sector that serves the public interest rather than private profit.