Aniefiok Christopher
Akwa Ibom Government has denied planned sale of Ibom Power Plant, saying it is repaying $560,000 quarterly to liquidate the $9 million Afreximbank loan secured for the Ibom Power Plant many years ago.
No administration was mentioned as the collector of the loan.
Dr. Aniekan Umanah, Akwa Ibom Commissioner for Information, in a press statement on Wednesday, March 18, rebutted this in reaction to a publication by The Guide newspaper, accusing the state government of planning to sell the company.
Ibom Power Company Limited was incorporated by ex-governor Victor Attah administration on January 15, 2001, as the pioneer independent electricity generation company.
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With an operational plant at Ikot Abasi, the company had three turbines and a combined installed capacity of 191 MW.
Straightnews gathered that the huge debt owed by the company has led to non-payment of salary to workers for more than four months now, a problem that allegedly caused the death of some staff members.
Though the government had sacked Engr. Menyene Etukudo, the chief executive of Akwa Ibom State-owned electricity-generating company Ibom Power in 2024, other problems are still bedevilling the company resulting in poor output.
Before his sack, Etukudo had issued a statement explaining that the power plant had shut down because its gas supplier, Savannah Energy, discontinued supply of gas due to a dispute over payments.
“This loss of gas supply coincided with a reported fault on the 132 KV Itu-Aba Transmission Line, which transports power from the national grid in and out of the state, hence the state-wide outage,’’ he noted.
Critical stakeholders believe that the plant is primarily driven by lack of gas supply due to an estimated ₦28 billion debt to suppliers, which occasionally led to shutdown periods.
Other significant problems, according to them, include weak infrastructure, poor maintenance, and inefficiency, with plant availability dropping below 50%.
Again, weak Transmission/Evacuation Lines is another teething problem as the infrastructure to move power out of the plant is old, fragile, and prone to faults, including the 132kV Itu–Aba transmission line and the Ikot Abasi–Eket line.
Moreover, there is a poor maintenance culture, lacking proper HSE (Health, Safety, and Environment) compliance, including a damaged fire cooling system.
Electrical infrastructure in the state, such as transformers and cables, is frequently vandalized and the host community has complained of not receiving power, causing disputes pose more problems for the company.
Umanah said ‘‘The attention of the Akwa Ibom State Government has been drawn to a publication by an Uyo-based tabloid, Guide Newspaper, containing a string of false, malicious, and wholly unfounded allegations regarding the status of Ibom Power Company and the intentions of the administration of His Excellency, Pastor Umo Eno regarding the company. We wish to state unequivocally that the said publication is a wicked fabrication and should be dismissed in its entirety by the public.”
Under the tittle: IBOM POWER IS NOT FOR SALE — RATHER GOV UMO ENO IS REPAYING THE $9M AFREXIM LOAN OBTAINED BY THE COMPANY MANY YEARS AGO AND INSTITUTING FAR-REACHING POWER SECTOR REFORMS, the Commissioner stated ‘‘At no time has the Government approved the sale of Ibom Power Company as scrap or otherwise. Such a claim exists only in the imagination of mischief-makers intent on misleading the public and undermining the State Government’s ongoing sector reform efforts.
‘‘Rather, the Akwa Ibom State Government under the purposeful leadership of Governor Umo Eno is currently repaying the $9 million Afreximbank loan secured by the company many years ago, as part of deliberate efforts to rescue and reposition Ibom Power Company for sustainable operations. In furtherance of this commitment, the Governor, on March 15, 2025, approved a structured quarterly repayment of $560,000 to progressively liquidate the facility and free the company from legacy financial encumbrances. This decisive action clearly reflects a government focused on revival, stability, and long-term value preservation, not liquidation’’.
According to him, ‘‘As part of the State Electricity Reform Action plan presented to Governor Umo Eno at the State Electricity Summit held last year, and subsequently approved by him, the Akwa Ibom State Government has also commenced a structured Private Sector Participation (PSP) programme to reposition the State’s electricity sector through a concession framework covering generation and distribution assets, including Ibom Power Company Limited. The initiative is designed to attract credible private investment and technical expertise while fully retaining government ownership of all the State’s electricity assets. The following actions have been implemented:
‘‘The establishment of the Akwa Ibom State Electricity Regulatory Commission as the sector regulator;
‘‘The establishment of Ibom Electricity Holdings Limited as the holding company for all State-owned electricity assets;
‘‘The vesting of all shares of Ibom Electricity Holdings Limited in the Akwa Ibom Investment Corporation;
‘‘The introduction of reform measures aimed at ensuring proper oversight, regulation, and efficient service delivery in the State electricity sector.’’
Umanah pointed out that ‘‘The concession initiative, driven by the Akwa Ibom Investment Corporation (AKICORP), adopts a model deliberately structured to protect the State’s strategic interests while attracting the level of capital and technical competence required in the electricity sector. Under this framework:
Qualified operators will rehabilitate, finance, operate, and expand the State’s electricity assets over a defined concession period;
Clear performance benchmarks, regulatory supervision, and mandatory investment obligations will be enforced;
Operational and commercial risks will be transferred from the State to competent private operators;
The State will retain ownership and strategic control of all electricity assets;
The model will promote disciplined investment, measurable performance standards, and the orderly resolution of legacy challenges without imposing additional fiscal pressure on the State;
Key elements of the proposed framework include mandatory investment and rehabilitation obligations, clearly defined performance benchmarks, independent regulation by the Akwa Ibom State Electricity Regulatory Commission (AKSERC), and strong local content and skills transfer provisions;
The reform is expected to resolve legacy challenges, improve reliability, and accelerate the development of a viable electricity market, all conducted with full regulatory compliance, transparency, and in the long-term public interest.
‘‘The State is aware of the current power outages experienced in different parts of Akwa Ibom and states that the transmission and distribution of electricity at the moment is outside the control of the State Government. However, the State is actively engaging the relevant institutions responsible to ensure a quick resolution of the problem and to allow better supply of power to residents and businesses.
‘‘It is deeply troubling that Guide Newspaper appears to have consistently resorted to merchandising falsehood across its editions, raising serious questions about its editorial standards, intent, and credibility. Rather than acknowledge sincere efforts to stabilize and reposition a sector of utmost importance to the State’s developmental aspirations, the newspaper has chosen the path of mischief, distortion, and deliberate misinformation.
‘‘The publishers are hereby reminded that government’s measured silence should not be mistaken for weakness, as the laws are clear on matters of libel, defamation, and the deliberate spread of falsehood. The public is therefore advised to disregard the said publication and rely only on verified and official sources for accurate information,’’ the Commissioner added.
