Ibom Power Plant Shut Down for 11 Months Over N28bn FG Debt, Gas Supply Cut

Ibom Power Plant Shut Down for 11 Months Over N28bn FG Debt, Gas Supply Cut

By Naija Across Borders

Nigeria's only wholly state-owned power generation company, Ibom Power Plc, has revealed that its power plant was forced to shut down for nearly 11 months in 2025 following a prolonged gas supply disruption caused by the N28 billion owed to the company by the Federal Government.

Speaking on the development, the Managing Director of Ibom Power Plc, Camillus Umoh, explained that the debt forms part of the electricity sector's N4 trillion legacy debt accumulated between 2015 and 2024.

According to Umoh, the company received gas for fewer than 30 days out of the last 360 days, with much of the supply falling below the level required for full operations. He disclosed that gas supplier Acugas has now adopted a "pay-before-supply" policy after years of unpaid invoices.

He added that the Federal Government has paid about N12.3 billion of the total debt, leaving an outstanding balance of N15.7 billion, which is expected to be discussed at a meeting between government officials and power generation companies (Gencos) in Abuja.

Umoh also lamented that electricity generation companies continue to suffer from poor payment structures, delayed remittances, foreign exchange challenges, inadequate maintenance funding, and transmission constraints, all of which have weakened power generation across the country.

Despite the setbacks, he said Ibom Power can generate between 82MW and 83MW whenever gas is available—enough to meet Akwa Ibom State's current electricity demand of 65MW to 71MW.

He further noted that the company was originally designed to export electricity and had plans to expand its generation capacity from 191MW to 685MW, but aging transmission infrastructure and liquidity challenges have stalled progress.

Umoh stressed that unless Nigeria addresses the power sector's liquidity crisis, strengthens gas supply, upgrades transmission infrastructure, and creates a more bankable electricity market, the country will continue to experience recurring power shortages.

Source: Naija Across Borders