GenCos suffering under N6trn debt burden, says Ogaji….face greatest risk in electricity value chain….rejects NLC’S allegations of extortion, clarifies sector challenges 

By Onu Okorie 

The Chief Executive Officer CEO

Association of Power Generation Companies Dr Joy Ogaji has disclosed that the the nation’s Power generation companies, GenCos, entitled to about 60% of the electricity market receivables following their invoiced energy bills, has 

an outstanding unpaid invoice of now over six trillion N6trn naira. 

She made this known in Abuja while responding to the recent statements credited to the President of the Nigeria Labour Congress NLC, Comrade Joe 
Ajaero, concerning the state of the nation’s power sector. 

It was reported recently that the NLC boss tagged GenCos fraudulent, hence require auditors and legal experts to 

investigate them.

According to Dr Ogaji “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.”

“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 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?”

“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.”