Ibom Power Seeks N12bn Bailout as Crisis Cripple 191MW Plant

Ibom Power Plant, a wholly-owned facility of the Akwa Ibom state government, is in dire need of a financial lifeline of N10 billion to N12 billion to prevent a complete collapse, as gas supply issues and unpaid wages threaten the 191-megawatt electricity generation asset. Operating for just 34 days out of the past year, the plant requires urgent intervention to cover gas securitization, employee salaries, and turbine maintenance.

Monthly gas invoices for the plant amount to N1.5 billion, but with payments taking 45 to 60 days to process, and only 40% of invoices settled, the gas supplier, Acugas, is demanding an escrow fund covering at least six months. Gas, accounting for 70% of the total costs, would require N9 billion alone. The plant, which employs about 140 workers, is currently in arrears of salaries, totaling over N840 million, with additional allowances and cost-of-living increases pushing the liability beyond N1 billion.

The crisis began when the 10-year take-or-pay Gas Sales and Purchase Agreement with Acugas expired in December 2023, and a new 24-month interruptible supply deal took effect in July 2024, eliminating guaranteed volumes. This has led to persistent shutdowns, with the plant running for only 38 days between August 2025 and August 2026.

Salary payments have also been erratic, with October 2025 payments split into three installments over November, December, and January, and February and May 2026 covering November and part of January. However, power expert and CEO of Excredite Consulting, Mr. Eyo Ekpo, believes the issue requires restructuring rather than just cash infusion, as Ibom Power did not cease operations due to Akwa Ibom's refusal to fund it; rather, it stopped due to the market's failure to pay for its electricity, and Acugas ultimately ceased gas supply as both parties knew it would not be paid for.