Power generation companies and the Nigerian Labour Congress (NLC) have begun a battle that is likely to linger for some time.
It all started when the President of the Nigerian Labour Congress, Joe Ajaero, accused power generation companies of engaging in what he described as “institutionalised extortion.”
This statement drew a response from the Association of Power Generation Companies (APGC), which described the claims as misleading and damaging to efforts aimed at stabilising the country’s fragile power sector.
The Chief Executive Officer of APGC, Dr. Joy Ogaji, faulted the recent remarks by the NLC President, Joe Ajaero, saying they did not reflect the realities of the Nigerian Electricity Supply Industry.
Ogaji stated, “While we acknowledge the frustrations of Nigerians regarding unstable electricity supply, we must firmly reject the characterisation of the sector’s challenges as robbery and a grand deception. Such allegations are a misrepresentation of the facts and a disservice to ongoing efforts to stabilise the power sector.”
According to the association, power generation companies remain the most financially exposed segment of the electricity value chain because they generate electricity that is not fully paid for due to revenue shortfalls across the market.
She added, “GenCos face the greatest risk in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn. Rather than castigate operators, attention should be focused on addressing the liquidity crisis that threatens the sustainability of electricity supply.”
The association also rejected claims that proposed government financial support for the sector amounted to a political arrangement, insisting that intervention funds were necessary to prevent further deterioration.
“We strongly refute the insinuation that proposed government support for the sector is a clandestine plan to ‘settle the boys.’ Such claims are baseless and undermine the critical liquidity interventions required to keep the lights on,” the statement added.
The GenCos said they were open to scrutiny and willing to subject their financial records to an independent forensic examination if required.
“If the NLC or any other institution considers it necessary, our books are available for any form of investigation. What is important is to identify the real causes of the sector’s challenges and work collaboratively toward sustainable solutions,” Ogaji said.
The development follows recent comments by the NLC accusing electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.
The power generators urged organised labour to engage constructively with stakeholders, warning that inflammatory rhetoric could discourage investment and worsen electricity shortages.
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