Planned strike by state electricity workers likely to result in widespread blackout.
Workers from the National Union of Electricity Employees (NUEE)
in June threatened to stage a nationwide strike from 1 July if the government proceeds with its planned privatisation of the Power Holding Company of
Nigeria (PHCN) without resolving labour disputes.
Control Risks considers it increasingly likely that the strike threat will materialise: unions and employers have a poor record of reaching agreements, particularly over the issue of privatisation, and negotiations are usually slow. Any strike is unlikely to significantly
worsen the current state of electricity supply, which remains
sporadic and represents a persistent operational risk to business in the country.
The privatisation is intended to improve performance, but there
is no guarantee that corruption and lack of regulation will not
further worsen power supplies.
Even if the strike does not take place, the privatisation process and any transition period are likely to result in supply disruption. Companies should continue to maintain adequate
back-up support systems, such as stand-alone generators.