The Association of Power Generation Companies (APGC) has condemned in strong terms, the allegations of institutionalised extortion and phantom subsidy levelled against the Companies by the President of Nigeria Labour Congress (NLC), Joe Ajaero, about the state of Nigeria’s power sector.
A statement signed by APGC’s Chief Executive Officer (CEO), Dr Joy Ogaji, titled “Stop Victimising The GenCos”, accused Ajaero of smearing the Companies’ image with baseless and unfounded allegations, describing it as unfair and an attempt to mislead Nigerians.
Ogaji said Nigeria’s electricity sector is regulated and thus cannot take customers, consumers and participants for granted. She challenged the NLC to identify the “robbers” and those engaged in the deception, saying GenCos, in spite of huge challenges they are facing, are still working assiduously to make electricity available to Nigerians.
The APGC chief said the statement credited to the NLC leader that the proposed government support to the power sector was to settle the boys ahead of the next general election was not just unfair but an attempt to undermine the critical support to keep the Nigeria Electricity Sector Industry (NESI) afloat.
The statement read, “The attention of the Association of Power Generation Companies (APGC) has been drawn to the recent statements made by the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, concerning the state of the nation’s power sector. We view these allegations, which include claims of “institutionalised extortion” and a phantom subsidy, as a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.
“While we acknowledge the frustrations of Nigerians regarding the unstable power supply, we must firmly reject the NLC’s characterisation of the sector’s challenges. To label the legitimate operations of power firms as “robbery” and a “grand deception” is a simplistic and inflammatory narrative that ignores the complex realities of the industry. We also strongly refute the insinuation that the proposed government support for the sector is a clandestine plan to “settle the boys” ahead of elections.
“Such a claim is baseless, offensive to the professionals working tirelessly in the sector and undermines the critical liquidity interventions needed to keep the lights on. It may be necessary for the NLC and its co-travellers to identify the robbers and those engaged in the deception. But it certainly cannot be the GenCos who are working around the clock to ensure that electricity is generated in spite of the huge challenges associated with the business. If we may further ask: Who are the boys the NLC is referring to? Is power generation meant for boys? Which election is the NLC talking about? What is the nexus between power generation and election?”
It added, “We are worried that in an attempt to remain relevant, the NLC has forced itself into an area where it lacks the requisite competence. The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges, which is visibly clear to everyone but calls for clarification too on the issues. This write-up is against the backdrop of the news trending in the sector, that GenCos are fraudulent, hence require auditors and legal experts to
investigate them for requesting their unpaid and accumulated receivables for power/electricity generated and consumed but not paid for. Should the NLC and any other institution find it necessary, let it be known that GenCo books are ready for any forensic examination that they can be subjected to.
“It is a fact that GenCos, who are entitled to about 60% of the market receivables following their invoiced energy bills, face the greatest risk in the electricity value chain with an outstanding unpaid invoice of now over six trillion (N6trn) naira. GenCos deserve pity and not castigation, ridicule and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated, and that electricity market participants can do as they pleased on checked.”