N6tn Debt: Gencos Deserve Pity, Not Castigation, APGC Tells NLC

• FG assures of improved performance in power sector 

•Adelabu: Power ministry received zero capital allocation in 2025

Emmanuel Addeh in Abuja

The Association of Power Generation Companies (APGC) has responded to a recent statement made by the President of the Nigeria Labour Congress (NLC), Joe Ajaero, concerning the state of the nation’s power sector, stressing that rather than flak, the Generation Companies (Gencos) deserve pity.

The APGC in a statement in Abuja, stated that characterising the activities of the Gencos as ‘institutionalised extortion’ and ‘a phantom subsidy, was a a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.

Signed by the APGC Chief Executive Officer, Joy Ogaji, the organisation, while  acknowledging the frustrations of Nigerians regarding the unstable power supply, firmly rejected 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,” the APGC stated.

The group said it was worried that in an attempt to remain relevant, the NLC has forced itself into an area where it lacks the requisite competence.  

The truth, according to the APGC, 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 Gencos’ 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 per cent 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 N6 trillion.  

“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. It is giving the impression that the sector is not regulated, and that electricity market participants can do as they please  unchecked,” the APGC stated.

Meanwhile, the Minister of Power, Adebayo Adelabu has said despite  zero allocation in the 2025 capital budget, this  did not stop the ministry from performing its functions of providing electricity to Nigerians. He also disclosed that the federal government would  avoid the fiscal error that hampered the implementation of the 2025 capital budget as it affects the ministry, assuring that despite the challenges,  there would be better performance in the sector.

The minister made this known during the budget defence of his ministry before the Senate Committee on Power at the National Assembly, Abuja, where he lamented that the non-release of the capital funds slowed down activities across ministries, agencies and departments, but assured that it would not happen to the 2026 budget.

He noted that despite the none release, the ministry’s activities, which were mainly supervisory, of the agencies under it, were carried out effectively. He said: “There are three components to the budget which are salaries and wages, overhead cost, and capital expenditure. The first two achieved 100 per cent, but we recorded zero per cent on the capital.

“However, we have agencies under the ministry, who generate revenues on their own and could carry on their work. This made it much easier for us to weather through the year.”

Adelabu told the lawmakers that despite the non-release of the capital funds, the ministry recorded only one grid disturbance, which happened on September 12, 2025.

“In 2024, when the budget performance was far better, we recorded one full grid collapse and about four disturbances. However in 2025, when we did not get anything, we recorded only one disturbance, which happened in the Niger Delta area as a result of the activities of vandals and explosion which affected gas supply.

“We were able to weather this challenge due to investments that have been put into stabilising the grid. So it is not true that because we did not get funds, the nation was thrown into darkness in 2025”, the minister said.

He also disclosed that 30 per cent of the 2025 capital budget is expected to be released to the ministry before the end March, 2026, while the remaining 70 per cent would be implanted for the rest of the year.

“The federal government is taking all the necessary steps and measures to ensure that the fiscal error that affected the implementation of the 2025 budget is avoided in the implementation of the 2026 budget. Mr President made this known while presenting the 2026 appropriation to the joint sitting of the National Assembly, so we are sure of a better implementation this year,” Adelabu said.

In his earlier remarks, the Chairman of the Senate Committee on Power,  Enyinnaya Abaribe,  described budgeting as a vital tool that aids prudent running of government activities and  enables the judicious utilisation of public funds and promotes transparency and accountability in all sectors of the economy.

“It is against this background that ministries, departments and agencies of government are mandated to submit their annual budget expenditure estimates and revenue projections to the National Assembly through the executive branch for approval.

“As we are all aware, the power sector plays a vital role in the continuous prosperity of any economy, particularly at a period of rapid global changes and economic diversification. Consequent to this, the committee will continuously engage the ministry to ensure tangible implementation of approved budgets as well as to identify the ministry’s challenges that require legislative support.

“This will be achieved through the legislative oversight functions and amendment of existing legislation where applicable,” Abaribe said.