By Gold Jeremiah
The Association of Power Generation Companies of Nigeria, (APGC), has said, it fully recognized the critical role of SCADA in advancing real-time monitoring, enhancing grid reliability, and improving operational visibility across the power sector; but however advised that, the several practical realities must also be addressed to ensure the project is implemented effectively and sustainably.
According to the association, the importance of the system is not in dispute, and GenCos remain committed to a more transparent and efficient grid but however, the Managing Director and Chief Executive Officer of APGC Joy Ogaji cautioned that several practical realities must be addressed to ensure the project is implemented effectively and sustainably.
•Managing Director and Chief Executive Officer of APGC, Dr Joy Ogaji
In a statement made available to our correspondent in Abuja, the association warned that ignoring these constraints could undermine the rollout and create fresh challenges for generation companies already operating under severe pressure.
On technical grounds, APGC explained that Supervisory Control and Data Acquisition (SCADA), integration is not a plug-and-play exercise. Generation plants currently run on highly customised, Original Equipment Manufacturer (OEM)-specific control systems.
Interfacing SCADA with these systems, she said, requires detailed technical assessments by the original equipment manufacturers, most of whom are international firms with their own lead times and design protocols.
The association also noted that many GenCos have already started consultations, but completion will require time and technical flexibility from all parties.
The statement also identified the Financial capacity which it said, presents another major hurdle. The financial implications of the SCADA project are significant, and the majority of GenCos are struggling to meet basic obligations such as salaries.
Beyond hardware acquisition, costs also cover OEM engagement, system upgrades, installation logistics, and vendor management. APGC argued that committing to capital intensive projects without a clear payment and utilisation framework will further strain companies that are already liquidity constrained.
Logistics and supply chain issues also feature prominently. APGC pointed out that key SCADA components such as Remote Terminal Units (RTUs), cyber-secure data gateways, and protocol converters are primarily sourced from overseas. Lead times, shipping, installation, and site configuration require several months at a minimum.
The association cited examples from South Africa, India, and parts of Southeast Asia, where similar integrations have taken up to 24 months from commencement to completion.
In order to address the funding gap, APGC proposed that the Nigerian Electricity Regulatory Commission, NERC, consider additional support mechanisms for GenCos, even as World Bank support currently covers Transmission Company of Nigeria activities.
The proposals include a Capital Recovery Mechanism that allows GenCos to recover SCADA investments through clearly ring fenced CAPEX allowances within MYTO tariff adjustments, and concessional financing through development banks for SCADA compliance, repayable over 5 to 7 years.
The association concluded with a call for fairness and collaboration. “While we appreciate GenCos who have complied, it should be noted that not all hands are equal and relevant stakeholders should do everything to make the liquidity situation of the GenCos better,” the statement read.
“Someone who has not eaten cannot buy Christmas clothes. GenCos are market participants and are licensees with obligations on both parties. Let us de-militarise the sector and run it impartially”, the statement said.
