Electricity Generation Companies (GenCos) in Nigeria have strongly refuted the recent allegations of “institutionalised extortion” and “phantom subsidy” made by the Nigeria Labour Congress (NLC).
The GenCos consider these claims, attributed to NLC President Comrade Joe Ajaero, as a misrepresentation of facts that undermines efforts to stabilise Nigeria’s electricity supply industry.
In a statement released on Wednesday by Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (APGC), the power firms acknowledged the frustrations of Nigerians regarding frequent power supply disruptions but firmly rejected the NLC’s characterization of the sector’s challenges.
The GenCos described the NLC’s portrayal of their legitimate operations as “robbery” and a “grand deception” as overly simplistic and inflammatory, failing to address the complex realities of the electricity industry.
They also refuted any insinuations suggesting that proposed government support for the sector is merely a covert plan to “settle the boys” ahead of upcoming 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,” the Companies advised.
In response to the NLC’s call for auditors and legal experts to investigate the GenCos over their requests for unpaid and accumulated receivables for electricity generated but not compensated, the companies asserted that their financial records are open and available for any forensic examination.
“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 checks.”
Dr. Ogaji stated, “Should the NLC or any entity deem it necessary, let it be known that GenCo books are ready for any forensic examination they wish to conduct.”
This statement underscores the GenCos’ commitment to transparency and accountability in the face of growing scrutiny within the electricity sector.
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