Power generation companies in Nigeria have dismissed allegations by the Nigeria Labour Congress that electricity firms were engaged in “institutionalised extortion,” describing the claims as misleading and damaging to efforts aimed at stabilising the country’s fragile power sector.

The reaction was contained in a statement issued on Wednesday by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji.

Ogaji faulted recent remarks by the President of the NLC, Joe Ajaero, saying they did not reflect the realities of the Nigerian Electricity Supply Industry.

Ogaji stated, “While we acknowledge the frustrations of Nigerians regarding unstable electricity supply, we must firmly reject the characterisation of the sector’s challenges as robbery and a grand deception. Such allegations are a misrepresentation of the facts and a disservice to ongoing efforts to stabilise the power sector.”

According to the association, power generation companies remain the most financially exposed segment of the electricity value chain because they generate electricity that is not fully paid for due to revenue shortfalls across the market.

She added, “GenCos face the greatest risk in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn. Rather than castigate operators, attention should be focused on addressing the liquidity crisis that threatens the sustainability of electricity supply.”

The association also rejected claims that proposed government financial support for the sector amounted to a political arrangement, insisting that intervention funds were necessary to prevent further deterioration.

“We strongly refute the insinuation that proposed government support for the sector is a clandestine plan to settle the boys. Such claims are baseless and undermine the critical liquidity interventions required to keep the lights on,” the statement added.

The GenCos said they were open to scrutiny and willing to subject their financial records to independent forensic examination if required.

“If the NLC or any other institution considers it necessary, our books are available for any form of investigation. What is important is to identify the real causes of the sector’s challenges and work collaboratively toward sustainable solutions,” Ogaji said.

The development follows recent comments by the NLC accusing electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.

The power generators urged organised labour to engage constructively with stakeholders, warning that inflammatory rhetoric could discourage investment and worsen electricity shortages.

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The President and Chairman of Dangote Industries Limited, Aliko Dangote, on Tuesday called on the Federal Government to urgently convene a national retreat to resolve Nigeria’s persistent electricity crisis, warning that widespread power outages could undermine the country’s industrialisation drive and economic growth.

Dangote made the appeal at the official national launch of the National Industrial Policy 2025 in Abuja, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future.”

The policy emerged against the backdrop of a weak manufacturing sector, which, due to poor electricity supply, high production costs, limited access to finance, infrastructure deficits, and heavy reliance on imports, has been constrained.

The event was attended by top government officials, captains of industry, and development partners, with President Bola Tinubu represented by Vice President Kashim Shettima.

In his goodwill message, Dangote stressed that without stable electricity, Nigeria would struggle to create jobs, drive industrial productivity, or achieve sustainable economic growth.

“One of the things that I want to advise Your Excellency, Mr Vice President, is to call a national forum where we will have a one- or two-day retreat and resolve the issues of power. Because without power, Mr Vice President, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth. So we must make sure that we tackle this issue,” he said.

His comments were greeted with applause from participants, including the Vice President. Dangote noted that while government policies to support industrialisation were commendable, the electricity challenge remained the single most critical constraint to manufacturing and job creation.

“We know what you call industrial policy; it is actually very, very important because the government cannot create jobs. They can only facilitate. And I think they have already given us whatever we need to create jobs. The policies that they have put in place are very good. Nigeria is a very big market. Not only that, this is a market where we are supposed to be serving other African nations,” he added.

However, he stressed that policy incentives alone were insufficient without strong infrastructure and protection of domestic industries.

“But one thing that we need is not only the policy. The policy is there. If you look at the incentives that we have for people to invest in Nigeria, actually, they are even more than what we need. The only thing that is remaining is the protection of industries.”

According to him, excessive importation remained a major threat to local manufacturing. “Even if you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” Dangote stated.

The billionaire industrialist lamented that many manufacturers now spend more on power generation than on production due to erratic electricity supply.

“So, people who are buying diesel, I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power. Some factories spend more money generating electricity than producing goods. You have to set up your own power plant and also a standby. That does not make sense. There is nowhere you can get prosperity that way,” he added.

Dangote’s remarks came amid a recent five-day power supply disruption linked to gas maintenance activities, which triggered widespread blackouts across several parts of the country and heightened concerns among manufacturers and businesses.

Seven power plants across Nigeria experienced gas supply constraints between February 12 and 15, 2026, as Seplat Energy shut down a major facility for scheduled maintenance, leading to nationwide generation shortfalls.

His comments reflected ongoing concerns in the organised private sector following the recent gas supply maintenance shutdown that affected power generation and led to load shedding across the country.

Stakeholders have repeatedly warned that frequent outages are forcing companies to rely on diesel and alternative energy sources, significantly raising production costs and contributing to inflation.

Dangote also highlighted the dominance of the private sector in Nigeria’s economy, urging stronger collaboration between government and businesses. “Nigeria is the only country in Africa where the private sector is bigger than the government. When you look at GDP, the private sector contributes almost 90 per cent, compared to the government’s 10 per cent,” he said. “We have what it takes to create massive consumption, massive industry, and disposable income.”

He added that entrepreneurs must also support national development by paying taxes and complying with regulations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business. Today, the government makes more money in our cement business than anybody. But that is okay, so far they allow us to expand and prosper.”

Dangote further said recent economic reforms had improved investor confidence and currency stability. “With the policies that this government has implemented, people are beginning to see the results. Manufacturers are happy. The stability of the currency is encouraging investors to come into Nigeria,” he said.

He projected that the naira could strengthen further if import dependence is reduced. “We should manufacture what we consume. That is the only way to create jobs. If we block unnecessary imports and support local production, the naira will get stronger,” he said.

He further urged the government to strengthen policies protecting domestic manufacturers from dumping and unfair competition. “If you allow imports, take into consideration our own constraints — high interest rates, infrastructure deficits, and electricity challenges. If dumping is allowed, nobody will survive,” he said.

Dangote added that the current policy direction was already attracting investors and boosting confidence in the Nigerian economy.

“The trajectory that we are on now is very high. Many people are trying to invest in Nigeria. The only thing that the government must emphasise is the protection of local industries. Once we do that, we will create jobs and reduce the burden on the government.”

He concluded by reiterating the need for urgent reforms in the power sector. “It takes a truly patriotic person to say, I love to produce diesel, but if I have my way, I would rather there is constant power, and I will not produce diesel again,” he said.

Nigeria has continued to grapple with electricity supply challenges, with power generation frequently disrupted by gas shortages, infrastructure vandalism, and maintenance shutdowns. The recent gas maintenance exercise led to a temporary drop in generation capacity and widespread outages, affecting households, manufacturers, and businesses.

Experts say a stable power supply remains critical to the success of the National Industrial Policy 2025, which seeks to boost local production, reduce imports, and position Nigeria as a manufacturing hub in Africa.