Ibom Power: How N28bn FG Debt Shut Down 191MW Nigeria’s Only State-Owned Power Plant- MD

‘12.3Bn Paid to Acugas,’ Ibom Power Managing Director, Camillus Umoh, opens up ti NOP NIGERIA on legacy debts, empty pipeline, the payment in tranches to Acugas and efforts being made to end the 11 Months generation drought at the facility that began power generation 15 years ago on December 14, 2009

For 330 of the last 360 days in 2025, Nigeria’s only wholly state-owned power plant sat idle. Not for lack of turbines, but for lack of gas.

The Ibom Power Plant in Akwa Ibom, built to generate 191 megawatts, was effectively switched off after its gas supplier, Acugas, cut supply over unpaid bills that have piled up for years.

Managing Director of Ibom Power Plc, Mr. Camillus Umoh, told NOP NIGERIA that the shutdown was triggered by a N28 billion debt owed by the federal government — part of a wider N4 trillion legacy debt crippling the power sector since 2015.

“For the past 360 days, aggregated availability days is under 30 days,” Umoh said in an interview with NOP NIGERIA at his office in Uyo, capital of Akwa Ibom state.

“And of these 30 days, not all are on maximum level. Some are on 30-40 per cent of what you optimally should need,” he disclosed.

The plant draws gas from Acugas’ Uquo field, 62 kilometers away. But after a decade of unpaid invoices, the supplier has now moved to a “pay-before-supply” policy.

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“Acugas has told us they don’t want to subject themselves to 10-year-old debts again,” Umoh explained. “Our gas supply ended last month. Going forward, if you don’t upfront pay us, we’re not going to give you gas.”

The crisis lays bare a familiar pattern in Nigeria’s Electricity Supply Industry, NESI: power is generated, but payment is not guaranteed.

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Every month, Ibom Power submits an energy invoice. It receives only 30 to 40 percent of the value, 60 days later, with no timeline for the balance.

That same broken remittance cycle, Umoh said, is what created the N4 trillion legacy debt now being negotiated in Abuja.

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On Tuesday, the federal government and Gencos are scheduled to meet to discuss repaying 52 percent of the debt. For Ibom Power, N12.3 billion of its N28 billion has been paid. N15.7 billion remains.

But even that repayment plan offers little relief. “About 50 per cent of that is cash, and the other 50 per cent is bond and you have to redeem your bond with a discount,” Umoh noted.

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The debt is also being settled without interest or compensation for depreciation, meaning money owed in 2015 buys far less in 2025.

The liquidity crunch has had real technical consequences. Ibom Power has missed scheduled maintenance cycles prescribed by General Electric, the OEM for its three turbines: two 6Bs of 38MW each and one 9B of 115MW.

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Turbines are designed to run 250 to 300 days a year. Ibom Power hasn’t come close. For 20 months, Acugas’ supply has been epileptic. In 2025, it collapsed entirely.

Even when gas trickles in, the plant cannot evacuate all the power. The 78-kilometer Aba-Itu transmission line is 51 years old and can carry only about 60MW. The Calabar-Itu line has been down for four years due to vandalism.

“The aging Aba-Itu line often forced the plant to ramp down even when we were able to generate,” Umoh said.

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Ironically, when it does run, Ibom Power produces more than Akwa Ibom needs. With gas, it generates 82 to 83MW. The state’s current demand, according to PHEDC, is 65 to 71MW.

The plant was conceived to export power and later scale to 685MW in phase two. Its “island mode” also allows it to supply Akwa Ibom directly when the national grid fails.

Umoh insists the problems are solvable with disciplined execution, integrated infrastructure, and bankable markets. But until liquidity and credit risk are fixed, he warned, Nigeria will keep repeating the same crisis.

For now, a plant built to light up a state and beyond remains mostly silent — a victim of debt, delayed payments, and a gas supplier that has simply run out of patience.

NOP NIGERIA