GenCos Knock NLC President, Ajaero, Over Alleged Institutionalised Extortion Statement

The power-generating companies known as GenCos have faulted recent comments by the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, describing them as ill-informed, misleading, and outside the union’s area of competence.

Gencos under the auspices of the Association of Power Generation Companies (APGC), in a statement issued by its Chief Executive Officer, Dr Joy Ogaji, said allegations by the NLC that the power sector is riddled with institutionalised extortion, robbery and a so-called phantom subsidy amount to a gross misrepresentation of the realities of Nigeria’s electricity industry.

While acknowledging widespread public frustration over unstable electricity supply, the APGC maintained that the NLC’s narrative oversimplifies the sector’s challenges and unfairly demonises power generation companies (GenCos) that are struggling to keep the system running amid severe constraints.

According to the association, describing the legitimate operations of power firms as a grand deception ignores the complex technical, financial and regulatory issues confronting the electricity value chain more than a decade after privatisation.

The APGC also rejected suggestions that proposed government support for the power sector is a covert plan to settle the boys ahead of elections.

It called the claim baseless and offensive to professionals working in the industry.

“It may be necessary for the NLC and its co-travellers to identify whom they consider the ‘robbers’ and those engaged in deception, but it certainly cannot be the GenCos.

“Power generation is not a job for ‘boys’ but for highly skilled professionals operating under extremely challenging conditions,” the statement stated.

The association queried who the NLC referred to as “the boys,” which election was being alluded to, and what connection power generation has with electoral politics.

The APGC expressed concern that, in a bid to remain relevant, the NLC had ventured into a highly technical sector where it lacks the requisite expertise.

It warned that such interventions risk misleading the public and undermining confidence in the industry.

The association declared that power generation companies have nothing to hide and are open to scrutiny.

“GenCo books are available for any forensic examination by auditors and legal experts,” the statement added.

The association noted that GenCos, which are entitled to about 60 per cent of total market receivables based on invoiced energy delivered and consumed, face the highest risk in the electricity value chain, with unpaid invoices now exceeding N6tn.

It warned that attempts to smear the image of power generation companies with what it described as unfounded allegations could mislead Nigerians into believing the sector is unregulated and that operators act without oversight.