GenCos Reject NLC’s ‘Extortion’ Allegations, Warn of Potential Power Crisis

Nigeria’s power generation companies have rejected claims by the Nigeria Labour Congress (NLC) that electricity firms are engaged in “institutionalised extortion,” describing the allegations as misleading and harmful to efforts to stabilise the country’s fragile electricity sector.

The Association of Power Generation Companies (GenCos), through its Chief Executive Officer, Joy Ogaji, issued a statement on Wednesday refuting comments by NLC President Joe Ajaero, saying they do not reflect the realities of the Nigerian Electricity Supply Industry (NESI).

Ogaji said, “While we recognise Nigerians’ frustration with unstable electricity supply, it is wrong to characterise the sector’s challenges as robbery or grand deception. Such claims misrepresent the facts and undermine ongoing efforts to stabilise the power sector.”

She emphasised that power generators remain the most financially exposed part of the electricity value chain, as many of the electricity they produce is not fully paid for due to market-wide revenue shortfalls. Ogaji noted that unpaid invoices now exceed N6 trillion, placing GenCos at significant risk.

“Instead of castigating operators, focus should be on addressing the liquidity crisis threatening the sustainability of electricity supply,” she added.

The association also dismissed claims that proposed government financial support for the sector is a political arrangement. According to Ogaji, intervention funds are crucial to prevent further deterioration of power supply.

“We strongly reject the suggestion that government support is a clandestine plan to ‘settle the boys.’ Such claims are baseless and undermine critical measures required to keep the lights on,” the statement said.

GenCos said they are open to scrutiny and willing to make their financial records available for independent forensic examination if necessary.

“If the NLC or any other institution deems it necessary, our books are open for inspection. The priority should be identifying the real causes of the sector’s challenges and working collaboratively toward sustainable solutions,” Ogaji stated.

The statement comes after recent NLC allegations accusing electricity firms of exploiting consumers through tariff adjustments and hidden subsidies. The power generators urged organised labour to engage constructively with stakeholders, warning that inflammatory rhetoric could discourage investment and worsen electricity shortages.