Key Takeaways
- ITUC-Africa criticises Nigeria's plan to remove subsidy on electricity in 2027
- The plan is seen as satisfying the International Monetary Fund and World Bank rather than helping Nigerians
- Industrialisation is central to Africa's liberation and development, but it must improve the welfare of the people
Organised Labour through the International Trade Union Confederation, ITUC-Africa, has 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, faulted the plans by the Nigerian government to remove the so-called subsidy on electricity, arguing that it is aimed at satisfying the Breton wood institutions such as the International Monetary Fund, IMF, and the World Bank. He stated that such removal would worsen the poverty rate in Nigeria and regress any margin progression towards industrialisation.
Industrialisation and Energy Justice
Odigie noted that organised labour believes industrialisation can be achieved without worsening the climate crisis if governments, workers, and development partners commit to energy justice. He stressed that developing technical skills and mobilising investment for energy infrastructure are essential if Africa is to industrialise sustainably.
ITUC-Africa also renewed its campaign for stronger public participation in Africa's energy sector, citing Finland as an example of how governments can ensure affordable electricity while working with private investors. Odigie explained that in Finland, the state retains an important role in the energy sector, including the ability to influence pricing to ensure affordability for everyone.
Closer Collaboration and Accountability
Ahead of the COP31 climate negotiations, Odigie called for closer collaboration between organised labour and the African Group of Negotiators (AGN), saying trade unions are partners in governance rather than adversaries. He stated that trade unions are not antagonistic to governments, but rather help to strengthen accountability and ensure that leaders remain connected to the realities faced by ordinary people.
Why This Matters
The planned removal of subsidy on electricity in Nigeria has significant implications for the country's industrialisation and energy justice efforts. As ITUC-Africa emphasizes, it is essential to prioritise the welfare of the people and ensure that economic growth is inclusive and sustainable, rather than solely benefiting external institutions like the IMF and World Bank.