The recent shutdown of the national grid by the labour union led to a heated debate regarding the implications of such action on a struggling economy. WALIAT MUSA examines the implications of the action in light of the grid’s designation as a critical national infrastructure, which should be protected.
The Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) on Monday, June 3, 2024, as part of a nationwide strike over improved workers’ pay, initiated a shutdown of the national electricity grid. This was part of the steps taken to show their grievances over the Federal Government’s alleged sloppy handling of the ongoing minimum wage impasse, in addition to pressing for a reduction in electricity tariff for Band A consumers.
These main labour unions not only shut down the national grid, but they also disrupted airline operations, as well as blocked entrance to the National Assembly as part of the indefinite strike.
Their action left millions of Nigerians without power for over 48 hours, thereby disrupting their daily lives and crippling economic activities.
The shutdown of the national electricity grid has severe economic repercussions, as industries and businesses, especially small-scale businesses that rely on public power supply, face massive disruptions, leading to significant financial losses.
Production line activities in the manufacturing sector, in particular, were temporarily halted, with attendant spoilage of perishable goods. Indeed, small and medium-sized enterprises (SMEs), which form the backbone of the country’s economy got hit hard, with many forced to shut down operations temporarily.
Furthermore, the loss of power affected critical social services providers, including hospitals, water supply systems, and communication networks, posing a threat to public safety and individual well-being. Expectedly, the cumulative economic damage occasioned by the action runs into billions of naira, highlighting the vulnerability of the country’s economy to such disruptions.
For many, the shutdown of the national grid by the unionists raises serious legal and ethical questions, including treason, an act of betraying one’s country, and economic sabotage, which is a deliberate act damaging the country’s economy. Both heavy accusations have been levelled against the unions.
According to the protagonists in electricity sector, by shutting down the grid, the labour unions not only undermined the country’s economic stability but also endangered national security.
They emphasized that while the labour union’s grievances may be valid, the method of protest raises serious ethical and legal concerns, highlighting that a balanced approach that respects workers’ rights while safeguarding essential services was imperative.
Additionally, they contended that constructive dialogue and proactive measures remain essential in preventing similar incidents and ensuring the stability and growth of the economy.
It would be recalled that a few days ago, the Secretary to the Government of the Federation, George Akume, condemned the shutdown of the national grid during the industrial action, describing the action as a treasonable felony, adding that there was nowhere in the world that organised labour shut down a country’s national grid during such protests.
A small-scale business owner, Rashidat Tiamiyu, shared Akume’s views when she told The Guardian that the shutdown wasn’t necessary as she had to cough out a hefty sum for fuel to power her electricity-generating set to avert total loss of her stoked frozen food. Like Tiamiyu, millions of other SME owners suffered a similar fate for about 48 hours.
The Nigerian constitution guarantees the right to peaceful protest and strike action. However, when such actions infringe upon the rights of others and jeopardize national interests, executors of such actions may cross the line into an unlawful territory. The balance between the right to protest and the responsibility to maintain essential services is delicate, and requires careful consideration.
Speaking with The Guardian, The Minister of Power, Adebayo Adelabu said there is presently a law against the shutdown of the grid, or essential services during a strike, but the challenge lies with its enforcement.
He stressed the need for corresponding consequences for such actions, especially if there is also an existing law. Adelabu added that the constitution has spelt all these out, noting that as much as one will not say that the labour should not go on strike, they should be very careful so as not to exceed certain areas.
He, however, said that one of the moves by the Federal Government, and Ministry of Power to reduce or de-emphasise over-reliance on the National grid, is the involvement of sub-nationals (states) in the entire energy value chain, and granting them powers to generate, transmit, and distribute power.
Without mincing words, the Executive Director of PowerUp Nigeria, Adetayo Adegbemle, described the shutdown of the national grid as a treasonable offense, and a form of economic sabotage.
He emphasized the importance of national security, noting that the uncountable number of economic activities affected by the shutdown, along with attendant losses, far outweighs any demands being made by the unionists.
Adegbemle highlighted the importance of balancing the right to protest with the need to maintain essential services and protect national interests.
He further pointed out that in every “sane clime,” while people do go on strike, they do not shut down public utilities. Instead, the government typically employs temporary staff to fill in the gaps, ensuring continuity of essential services.
He, therefore, expressed his belief that organised labour should be sued by the Federal Government, state governments, private enterprises, and interest groups, as such destructive acts against the nation should not be encouraged to continue.
On the economic impact of the national grid shutdown on industries and businesses, particularly SMEs, Adegbemle said there’s no study commissioned to study such impact, but everyone saw the blackout.
“I have advised this same labour leadership on the need to evolve their strategy of engagement with the government, but all I got were curses.
“The Electricity Act 2023 is a good and progressive way to deal with our reliance on the national grid, even though I am also a firm believer that the grid should be strengthened and not be further cannibalised. So, let’s hope that state governments can evolve and develop their energy markets.
“There’s also a recent order from NERC separating the system operations from the transmission service providers. So, let’s hope that this also helps in bringing some sanity into the grid system, but that labour attacks the grid itself every time there’s an agitation is going overboard and should not be encouraged to continue,” PowerUp Nigeria boss added.
In a different opinion, the National Coordinator of the All Electricity Consumers Protection Forum (AECPF), Adeola Samuel-Ilori, described the move by the labour unions as a double-edged sword, noting that the popular saying “in war, all is fair” applies.
He added that the shutdown of the grid wouldn’t have happened if the government had been responsible and prioritised the letter and spirit of constitutional provisions of Section 14(2)(b), which emphasizes the welfare and security of the people.
He questioned how a sane government could offer a minimum wage of N60,000 in this era of hyperinflation and economic quagmire, suggesting that the government seems intent on confining its citizens to poverty.
“How can such an action constitute treason? How? As I said before, in war, you make use of weapons in your arsenal, including nuclear if permitted. Are the workers not part of the NLC? Were they expected to be working while others were on strike? Who is going to prosecute the harbingers of incessant grid collapses?
“Or is it not an act of sabotage for the grid to collapse almost thrice in a month for a country with abundant resources? Are moribund equipment and obsolete machines not part of the reasons for grid collapse? Was money not awarded in the past for repairs and replacements?
“Why are we still having these issues, and what has the government done to reprimand the officers in charge of the grids and their perennial problems? They should do the needful to ensure the right things are done instead of trying to bully with words. Those who make peaceful resolutions impossible make violent responses inevitable. Economic sabotage? I laugh.”
Samuel-Ilori stated that those who should be charged with economic sabotage include the ones who engage in round-tripping naira to dollars under the guise of reform and floating the currency and the ones who removed petrol subsidies leading to severe hardship for citizens through thoughtless policies.
He questioned whether the country was truly benefiting from the power supply before the “tariff increase for darkness” was initiated by the government.
According to him, there is no greater economic sabotage than a country fluctuating between 3,000 to 5,000MW of power over the last how many years of privatisation, while SMEs are struggling due to insufficient power supply.
“Where did you see flourishing SMEs in Nigeria? They have been gradually eroded through the mindless policies of subsidy removal, naira floating, and others being the government’s way of approaching our micro-economy. So, it’s not the one half-day grid shutdown that will make it comatose. We have had the grid collapse for two days before on several occasions due to a government agency’s inefficiency, did the government compensate SMEs during that period?” he asked.
Recommending how Nigeria can diversify its energy sources to reduce reliance on the national grid, he emphasised the importance of alternative energy sources like renewable energy.
He suggested that the government should lower the cost of renewable energy and offer tax and duty waivers to importers, similar to the incentives given to metre manufacturers for producing components. This approach, he said, would significantly improve the sluggish pace of energy generation.
“Fashola as minister of power came up with a power sector recovery programme to cover 2017-2021. Till that time elapsed, nothing was implemented on renewable energy. Same as the new SIP coming up under the present minister, but I have read through the 56 executive summaries, and nothing promising as far as renewable energy is concerned. It will just be there as a policy on paper, but will not be promoted because its promotion and easy access will make many abandon DisCos, the conventional baby, to milk dry, the hapless consumers,” he added.
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