Stakeholders Collaboration Key To Surmounting Power Sector Challenges – APGC Chair
By Sunday Etuka
The Chairman of the Board of Trustees of the Association ofPower Generation Companies (APGC), Col. Sani Bello (Rtd), has underscored the need for stakeholders’ collaboration to address the mountainous power sector challenges in the country.
Col. Bello spoke on Monday on the occasion of the 10th Anniversary Celebration of the APGC in Abuja.
He listed some of the challenges facing the sector to include Persistent liquidity shortfalls; Inadequate gas supply and infrastructure; Market inefficiencies and imbalance in payments; Ageing equipment and inadequate investment in grid stability; and Regulatory and policy uncertainties that sometimes undermine investor confidence.
According to him, the journey to a fully efficient, reliable, and sustainable power sector cannot be undertaken by GenCos alone.
“We must continue strengthening collaboration among all stakeholders, the Ministry of Power, NERC, NBET, TCN,gas suppliers, and DisCos, to address systemic bottlenecks. We must push for policies that are consistent, transparent, and investor-friendly; policies thatenable innovation and sustain power generation investments,” he noted.
While stating that the success of the GenCos is Nigeria’s success, because no nation could industrialize or prosper without reliable electricity, Bello called on the next generation of GenCo leaders to build on the existing foundation.
“The next decade must be one of: Innovation, embracing renewable and hybrid solutions; Efficiency, reducing generation losses and optimizing maintenance; Collaboration, deepening partnerships within the NESI; and Accountability, ensuring that we meet the expectations of our investors, customers, and the Nigerian people,” he added.
Bello extended his heartfelt appreciation to: The Minister of Power for his unwavering support tothe industry; Members of the National Assembly fortheir constructive legislative oversight; The leadership and staff of the NERC, NBET, and TCN for their efforts in policy and market coordination; private sector, investors, and development partners; and the Chief Executive Officer, Dr. JoyOgaji, whose dedication and tireless leadership have been the driving force behind APGC’s progress.
Spotlighting some of the progress so far made in the sector, the Managing Director/CEO of the Mainstream Energy Solutions Limited, Engr. Lamu Audu, said the company was able to add about 1,154MW of power to the national grid on September 24, 2025, a milestone he said was made possible through the company’s capacity recovery and expansion programme.
He disclosed that despite being owed about N600billion by the electricity market, the company is working assiduously to contribute additional 220MW of electricity to the national grid by May, 2027.
“Having taken over the operation and management of Kainji at Zero Megawatts, MESL diligently worked to rehabilitate six (6) generating units (1G5, 1G6, 1G7, 1G9, 1G11 and 1G12) with combined capacity of 600MW. MESL, also executed the rehabilitation of Jebba generating units 2G5 and making all the six units available for service.
“With diligent execution of its Capacity Recovery & Expansion Program, the company despite being owed N600billion in receivables, seeks to recover capacityand is presently installing Units 1G3 and 1G4 in Kainji, which after completionby May 2027 will contribute an additional 220MW of electricity to the National Grid,” he noted.
The Mainstream boss informed that although the Kainji andJebba hydropower plants were commissioned in 1968 and 1985 respectively, and commercial operations commenced in 1983, there was no statutory overhaul exercise conducted on any of the generators at both plants from commissioning till MESL’s takeover, 30 years in operation as at 2013.
Disclosing that upon take over in November 2013, the totalavailable capacity was 460MW (Kainji=OMW; Jebba=460MW). However, he said with committed and diligent management, MESL has increased the total available capacity to 1,178.4MW at both averages.
Engr. Audu also disclosed that the company earmarks 1% of itstotal revenue for Corporate Social Responsibility (CSR), revealing that so far ithas spent over N10 billion through its Foundation to empower communities by building and equipping schools, hospitals and providing water.
The MD who disclosed that about 110 projects were executed in 2024, added that 71 schools were so far built, 317 classrooms constructed, 10,603 desks and chairs donated,10 hospitals constructed and equipped, 13 healthcare centres constructed, 300 boreholes drilled and 800 communities provided withwater.
On her part, the Managing Director of APGC, Dr Joy Ogaji, identified lack of optimal capacity utilization of power being generated by GenCos and liquidity issues as the most pressing challenges facing the generating subsector ofthe power value chain in the country.
She submitted that although the GenCo have exceeded theirtargeted power generation as contained in the Power Purchase Agreement (PPA), they are yet to get even close to 100% payment invoice as agreed.
Dr Ogaji stated GenCos need money to repair and maintain theirgenerators, pay gas suppliers and pay salaries, lamenting that the market owes Mainstream Energy N600 billion of power generated and ultilised. Adding that amount is only for one generator alone.
She mentioned that the GenCos are worried given that the Market Reconciliation Obligation (MRO) and Debt Reconciliation Obligations(DRO) account for far less than GenCos’ invoice with no top-up plan or cash-backed subsidies.
“Given that there is no clear financing plan to take care ofthe gaping hole the unpaid invoices are creating, how are GenCos expected to continue operating,” she asked.
Ogaji added that Tax and Regulatory challenges; high corporate Income Tax, concession fees, royalty charges, and new FRC compliance obligations are further straining GenCos’ revenue in addition to host community demands.
She noted that there is no clear workable market design that could stabilize the market since privatization with huge contagion, with no deadline.
Meanwhile, the former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, has identified the Generation Companies (GenCos) as the most improved value chain in the Nigerian Electricity Supply Industry (NESI).
He said there is still no reliable power supply in the country,but that does not mean that progress has not been made in the sector, adding that the only thing is that the progress is grossly inadequate.
Dr Amadi said that a major challenge in the sector has been thatof illiquidity, noting that why he is not against government interventions inthe sector, the market should be designed to take care of debts.
According to him, “in a well-functioning market, all variations in terms of either cost, shortfalls, debts, the market would pay.”
