The Transmission Company of Nigeria (TCN) has announced a total shutdown of the nation’s power grid following the commencement of an indefinite strike by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).
The strike, which began on Monday, June 3, 2024, is in protest against the Federal Government’s failure to conclude and pass a new National Minimum Wage Act into law and reverse the recent electricity tariff hike.
The shutdown has resulted in a nationwide blackout, severely impacting both residential and industrial activities across the country. According to a statement issued by TCN’s General Manager of Public Affairs on Monday, the national grid was shut down at approximately 2:19 am on June 3, 2024. The statement detailed the sequence of events leading to the shutdown:
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“The national grid shutdown occurred at about 2.19am this morning, June 3, 2024. At about 1:15 am this morning, the Benin Transmission Operator under the Independent System Operations unit of TCN reported that all operators were driven away from the control room and that staff that resisted were beaten while some were wounded in the course of forcing them out of the control room and without any form of control or supervision, the Benin Area Control Center was brought to zero.”
The labour union also shut down several key transmission substations, including Ganmo, Benin, Ayede, Olorunsogo, Akangba, and Osogbo. Additionally, power-generating units from various stations were forced to cease operations. The Jebba Generating Station, for instance, was compelled to shut down one of its generating units, while three others subsequently shut down due to very high frequency, leading to system instability and the eventual collapse of the national grid.
The TCN said it has been making efforts to recover and stabilize the grid. Recovery attempts commenced at about 3:23 am using the Shiroro Substation to feed transmission lines supplying bulk electricity to the Katampe Transmission Substation. However, these efforts have been significantly hindered by the continued obstruction from the labour union.
“The situation is such that the Labour Union is still obstructing grid recovery nationwide. We will continue to make effort to recover and stabilize the grid to enable the restoration of normal bulk transmission of electricity to distribution load centres nationwide,” TCN stated.
Background of the Strike
The strike by NLC and TUC is rooted in the government’s inability to agree on a new national minimum wage and address the high cost of living exacerbated by recent economic policies. The unions initially proposed a minimum wage of N615,500, later reducing their demand to N494,000. The unions have cited the significant increase in the cost of living due to recent economic policies, including the removal of fuel subsidies and the floating of the forex market.
The Federal Government, represented by Presidential spokesperson Ajuri Ngelale, has argued that the proposed minimum wage is unsustainable given the current economic realities.
Ngelale said that such an increase would have widespread ramifications, affecting not only government finances but also small businesses and the informal economy. He warned that the mandated wage increase could lead to business closures and job losses.
“But he [the president] also recognizes that there are economic realities and fundamentals within the country right now that do not support what the organized Labour movement is advocating for, and I want to be very clear this evening about what the consequences would be if organized labour had its way,” Ngelale said.
“Right now, there is this notion out there that the minimum wage conversation in the country is simply almost a conversation between a federal executive administration and organized labour about a new minimum wage for the federal civil service. That is not what we’re talking about.
“We’re talking about a new national minimum wage for every Nigerian citizen, both within the formal economy as well as the informal economy.
“This has ramifications. Essentially, we’re moving from the current minimum wage where it is to, if labour got its way, something north of N500,000 per month; you’re looking at almost 20 times, right?
“So the impact that would now have on the citizens of the country, we’re not talking about government now, we’re talking about our people, is, I want to be practical about this, if you’re thinking of the mom and pop shop that is dealing in chinchin and bakery and these kinds of goods and services.
“The idea that you are going to mandate them to pay 20 times whatever it is they’re paying their staff within that small business, you know that you are essentially mandating the closure of that business, and you are literally, indirectly sacking the entire set of people who happen to be working there because that business is closing because they cannot live up to the minimum wages that organised Labour is asking for.”
Despite the government’s position, public sentiment has remained largely sympathetic to the labour unions. Many Nigerians point to the government’s multi-billion naira extravagant spending on non-essential items, such as the renovation of political offices, luxury cars for the presidency and lawmakers, and salary increases for legislators.
These expenditures have been perceived as wasteful, especially in the face of the economic hardships faced by ordinary citizens. This perception has bolstered the resolve of the labour unions to continue their strike until their demands are met.