The Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, has warned against threats to disconnect generation companies (GenCos) from the national grid, stressing that unstable transmission and persistent market failures are worsening plant damage and financial losses.
Her comments followed directives from the Nigerian Electricity Regulatory Commission (NERC), which recently warned that GenCos who fail to install the Free Governor Control (FGC) on their generating units risk stiff penalties.
According to the regulator, any GenCo that does not comply with the integration and activation of FGC by November 30, 2025, will face a prorated 10 per cent penalty on invoices linked to the defaulting unit. Generating units that record 90 consecutive days of non-compliance risk disconnection from the grid.
In response, Ogaji acknowledged NERC’s role in providing leadership but stressed that deeper systemic issues must be addressed.
“GenCos appreciate the commission for trying to provide direction and leadership in the sector, but the foundation of the power industry is being undermined by inefficiencies in grid management and poor financial discipline,” she said.
The APGC further demanded clear regulations mandating the immediate payment of revenue by offtakers, arguing that delayed remittances continue to erode investor confidence and operational sustainability.
