Outages: GenCos Accuse IE, EKDC, IBEC, Other DisCos of Rejecting Power

Outages: GenCos Accuse IE, EKDC, IBEC, Other DisCos of Rejecting Power

  • Power generation companies accuse distributors of rejecting electricity, worsening Nigeria's electricity crisis
  • Distribution companies claim operational issues lead to 'load dumping,' not intentional rejection of power
  • Industry leaders call for collaboration to resolve structural inefficiencies and improve Nigeria's electricity supply

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s worsening electricity crisis has taken a new twist, as power generation companies (GenCos) accuse distribution companies (DisCos) of deliberately rejecting available electricity, worsening blackouts across the country.

The claims come at a time when households and businesses are grappling with prolonged outages, raising fresh concerns about inefficiencies across the power value chain.

GenCos in a battle with DisCos over load rejection
Nigerians are in darkness as power firms lock horns over load rejection. Credit: Novatis
Source: Getty Images

GenCos: “DisCos are rejecting available power”

Operators in the generation segment say the persistent drop in electricity supply is not solely due to gas shortages, as often reported. Instead, they argue that DisCos are declining to take up the power already generated.

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The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, revealed that system operators have, on several occasions, asked GenCos to reduce output because DisCos were unwilling to accept allocated loads.

According to her, while gas constraints continue to affect thermal plants, they are only part of the problem.

She disclosed that in January, Nigeria recorded an average generation of 4,541 megawatts, but as much as 2,985MW went unutilised.

In February, average generation stood at 4,218MW, with an even higher 3,274MW reportedly not taken up, according to a report by Punch.

Huge capacity, limited utilisation

Ogaji noted that Nigeria currently has about 30 grid-connected power plants with an installed capacity of 15,500MW. However, due to mounting debts and operational constraints, only about 7,000MW can be made available.

Even more concerning, she said, is that only between 4,000MW and 4,500MW is actually transmitted and distributed to consumers, leaving a significant portion of generated power stranded.

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She challenged claims that the transmission and distribution networks can handle higher volumes, urging stakeholders to provide verifiable data to support such assertions.

DisCos push back: “It’s not rejection, it’s misdirection”

Distribution companies, however, strongly dispute the allegations, insisting they have no incentive to reject electricity they can sell.

Industry operators argue that what GenCos describe as “load rejection” is, in reality, a transmission problem, specifically, the inability to deliver electricity to the right locations.

Using a logistics analogy, one operator explained that DisCos cannot accept power delivered to areas outside their demand zones. If electricity is “dumped” in the wrong place, they lack the infrastructure to reroute it efficiently.

They stress that accepting such misplaced supply would mean paying for energy they cannot distribute or monetise.

Business reality behind power distribution

DisCos also emphasised that, as commercial entities, their operations are guided by demand and revenue viability.

According to insiders, no rational business would turn down a product that generates income. However, they insist that electricity must be delivered where there is paying demand.

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They argue that the real issue is “load dumping” — not refusal — and that the narrative of deliberate rejection oversimplifies a more complex operational challenge.

Call for collaboration, not blame

The Chief Executive Officer of the Association of Nigerian Electricity Distributors, Sunday Oduntan, declined to assign blame, calling instead for collective solutions.

He acknowledged longstanding bottlenecks in the system and maintained that resolving structural inefficiencies would eliminate disputes over load allocation.

Oduntan also reiterated the need to settle debts owed to GenCos, noting that financial stability across the sector is critical to improving supply.

TCN explains the allocation process

The Transmission Company of Nigeria (TCN) has also weighed in, explaining that electricity allocation is largely based on DisCos’ daily requests and regulatory guidelines.

According to TCN, the Nigerian Electricity Regulatory Commission’s tariff framework determines how generated power is shared, taking into account factors such as customer base and previous consumption patterns.

The company added that DisCos nominate their required power a day in advance, helping system operators plan distribution.

GenCos in a battle with DisCos over load rejection
GenCos and DisCos trade words over outages nationwide. Credit: TCN
Source: Twitter

A system under strain

The ongoing dispute highlights deep-rooted challenges in Nigeria’s electricity sector, where generation, transmission, and distribution remain poorly aligned.

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With millions still without reliable power, the blame game underscores an urgent need for coordinated reforms, as Nigerians continue to bear the brunt of a system struggling to deliver consistent electricity.

TCN alerts Lagos residents of 122 days of power interruption

Legit.ng earlier reported that the Transmission Company of Nigeria (TCN) has announced a planned four-month power interruption in parts of Lagos state as it begins major rehabilitation work on its Amuwo 132/33kV Gas Insulated Substation (GIS).

The project, scheduled to run for 122 days from March 18 to July 30, 2026, is part of efforts to strengthen electricity infrastructure and improve long-term power supply reliability in the state.

In a statement issued over the weekend, TCN’s general manager of public affairs, Ndidi Mbah, apologised to residents and businesses that will be affected by the temporary disruption.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng