APGC CELEBRATES 10TH ANNIVERSARY AMIDST DEBTS, CHALLENGES ..... Charts A New Course For The Future
"Through constructive dialogue and firm advocacy, she said APGC was able to engage the government, regulatory authorities, and market operators to improve performance, liquidity, market transparency, and payment discipline." Dr. Joy Ogaji, MD/CEO APGC.
The Association of Power Generation Companies (APGC), as part of its 10th Anniversary with the theme, "A Decade of Powering Progress: Driving Nigeria's Energy Transformation, resolved to address the challenges in the energy sector in spite of an evolving electricity market that was fraught with challenges posed by liquidity shortfalls, gas constraints, and infrastructure bottlenecks.
The Association of Power Generation Companies, APGC, according to its Chief Executive Officer, Dr. Joy Ogaji, has achieved remarkable milestones in just a decade of its existence amid challenges, even as it charts a new course for the future focused on energy transition, climate resilience, policy advocacy and renewable energy integration.
This is as the Electricity Generation Companies (GenCos) have continued to contend with policy inconsistencies of government which has had its impact on the sector.
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Dr. Joy Ogaji |
Dr. Ogaji, in her welcome remarks at the 10th Anniversary celebration of the association which held at the Mohammed Mahmoud Auditorium of the Niger Delta Power Holding Company in Abuja on Monday, said, being born at a defining moment when Nigerian Electricity Supply Industry (NESI) was at the crossroads of a transition, the privatization programme of 2013 opened both new doors and new uncertainties the Association had to grapple with.
Apart from an evolving electricity market that was fraught with challenges posed by liquidity shortfalls, gas constraints, and infrastructure bottlenecks, Ogaji said electricity generation companies (GenCos) contended with policy inconsistencies.
Speaking on the theme; “A Decade of Powering Progress: Driving Nigeria’s Energy Transformation”, Ogaji disclosed that, "from those humble beginnings, the APGC has grown to become a strong advocate that educates, and unites the GENCOs under a common purpose: to power Nigeria’s future sustainably and responsibly.
“Over the past decade, the APGC has remained unwavering in its mission to provide a level playing field for members, share knowledge, and promote best practices that enhance operational excellence and policy integrity within NESI”, she said.
Through constructive dialogue and firm advocacy, she said APGC was able to engage the government, regulatory authorities, and market operators to improve performance, liquidity, market transparency, and payment discipline.
Also, she the APGC was able to strengthen industry collaboration between GENCos, gas suppliers, Nigerian Bulk Electricity Trader (NBET), and the Transmission Company of Nigeria (TCN), while promoting discussions on tariff rationalisation, contract sanctity, and investor protection.
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| Senator Eyinnaya Abaribe, Senate Committee Chairman on Power, flanked by other dignitaries at the APGC 10th Anniversary which included the representative of the Chairman, House Committee on Power, the Permanent Secretary Federal Ministry of Power, Angeline Babalola, Director of Planning, Research and Statistics of the Ministry, The Managing Director/Chief Executive Officer of the Nigerian Independent System Operator (NISO), Engr. A. B. Mohammed. |
Despite the achievements, she said "the sector still faces recurring challenges, posed by endemic liquidity squeeze now hampering the operations of the GenCos, gas shortages, inadequate grid infrastructure, and regulatory uncertainty."
The APGC Chief Executive who described these as not unsurmountable, said "with strong political will, focused leadership, persistence and unity of purpose by all stakeholders, transformation was achievable.
"The vision of the Association in the next phase of its existence would be to build a stronger, smarter, and more sustainable power generation industry driven by innovation, accountability, and partnership," She stated.
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Col. Sani Bello |
Ogaji further restated that, "Apart from deepening engagement on energy transition and climate resilience, the APGC is focused on strengthening investor confidence through consistent policy advocacy; promoting new technologies and renewable integration, and ensuring that every GENCo, regardless of size, thrives within a fair, efficient, and competitive market.
The Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman, in his goodwill message, described the celebration as a milestone representing “not just a decade of institutional existence, but ten transformative years of dedication, resilience, and unwavering commitment to powering Nigeria’s development aspirations.”
Mamman, who was represented by the Director of Planning, Research and Statistics of the Ministry, Evangeline Babalola, said, "Over the period, the sector witnessed remarkable transformations; from the historic privatisation of the power sector to ongoing reforms aimed at improving efficiency, increasing generation capacity, and expanding access to electricity for millions of Nigerians."
He commended the APGC for its advocacy for a solution to industry issues, ranging from gas supply constraints, infrastructure deficits, liquidity challenges, and regulatory complexities, pointing out that it was in confronting these challenges that the true strength and ingenuity of the GENCos and the APGC shone through.
Despite the huge debt debacle GENCOs are facing, Mahmuda Mamman acknowledged their commitment to continue rending service to the people, by keeping the turbines running, the lights on, and the wheels of our economy turning.
“This is not just business; this is patriotism in action. For this extraordinary sacrifice and dedication to the Nigerian Electricity Supply Industry (NESI), we owe you a profound debt of gratitude—and indeed, we owe you payment of the actual debt,” he said.
He gave the assurance that the government was doing everything within its capacity to fix the liquidity challenges facing the NESI, adding that a Committee has already been constituted with the specific mandate to address the payment of outstanding debts owed to the GENcos.
The Committee, he said, was charged with the responsibility of developing a comprehensive framework for clearing these debts and establishing sustainable payment mechanisms to prevent such accumulations in the future.
On the widening gap between current electricity generation capacity and national demand, which he noted has continued to constrain economic productivity, limit social development, and affect the quality of life of millions of Nigerians, he called the APGC to continue to partner with the government with its technical expertise, and innovation to drive sector growth.
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Senator Eyinnaya Abaribe |
The Managing Director/Chief Executive Officer of the Nigerian Independent System Operator (NISO), Engr. A. B. Mohammed in his keynote address titled: “Roles of Associations in an Effective and Viable Nigerian Electricity Supply Industry (NESI)” described the birth of APGC in 2014 shortly after the privatization of the power sector as turning point.
He said the birth of the APGC not only provided the newly privatized GENCos a unified and credible institutional framework to articulate shared operational and commercial challenges, but also helped them engage constructively with sector stakeholders that now includes the NISO, as well as contribute technical insights to policy and market developments.
He urged the APGC to continue to serve as a policy and advocacy platform, the NISO boss the Association must resist the temptation of presenting itself as a proxy to individual members or operational intermediary.
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Engr. Jennifer Adighije, MD/CEO NDPHC with Senator Abaribe and Angeline Babalola during the event |
Guest Speaker at the APGC 10th Anniversary, Dr. Sam Amadi, a former Chairman of the Nigerian Electricity Regulatory Commission (NERC) and well respected power stakeholder in the sector, said that the fundamental challenge of the electricity sector, which is lack of liquidity, would not be resolved if the ongoing reforms do not result in the expansion of the operational capacities of the GENCos.
Although Amadi acknowledged that some progress has been made in the sector since its privatization, he said it was difficult to talk about the success when people are feeling it easily.
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