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Ibom Power says gas supply was available for fewer than 30 days in the last 360 days, leaving operations at its 191MW power station largely grounded.
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The company blames the disruption on the Federal Government’s outstanding N28 billion debt, part of the electricity sector’s N4 trillion legacy liabilities.
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Gas supplier, Acugas, suspends deliveries and demands upfront payment after years of unpaid invoices, worsening Nigeria’s power supply challenges.
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GenCos and Federal Government officials to meet in Abuja over repayment plan, with only half of the proposed settlement expected to be paid in cash.
July 21, (THEWILL) — Nigeria’s only wholly state-owned electricity generation company, Ibom Power Plc, has disclosed that operations at the 191-megawatt (MW) Ibom Power Station in Ikot Abasi, Akwa Ibom State, were severely disrupted for about 11 months after its gas supplier suspended deliveries over unpaid invoices
The development of the company was attributed to the Federal Government’s outstanding N28 billion debt under the Nigerian Electricity Supply Industry’s (NESI) legacy payment obligations.
The disclosure, made by the Managing Director of Ibom Power Plc, Mr. Camillus Umoh, highlights the worsening liquidity crisis confronting Nigeria’s electricity market, where mounting debts owed to power generation companies have increasingly constrained gas supply, delayed plant maintenance, and weakened electricity generation across the country.
Commissioned in 2010, the Ibom Power Station remains Nigeria’s only wholly state-owned electricity generation facility. The plant comprises three General Electric gas turbines two 38MW GE 6B units and one 115MW GE 9B unit.
Although the Ibom Power Station has an installed capacity of 191MW, not all of its generating units are currently operational due to maintenance and operational constraints, with the prolonged gas supply disruption further crippling the facility’s ability to generate electricity for the national grid.
Gas Supply Collapses, Plant Left Largely Idle
Speaking during an interaction with THISDAY, Umoh disclosed that the company received gas for less than 30 days over the last 360 days, effectively leaving the power station largely inactive throughout 2025.
“For the past 360 days, aggregated availability days have been under 30 days. I repeat that. For the past 360 days, calendar-wise, 12 months, the aggregated supply days are less than 30 days,” Umoh said.
He explained that even during those few days, gas deliveries were well below operational requirements.
“Some of those supplies were only about 30 to 40 per cent of what the plant actually required, forcing us to operate at sub-optimal levels,” he added.
According to Umoh, the gas supply crisis culminated in June when Acugas, which supplies gas from the Uquo field through a 62-kilometre pipeline, halted deliveries after several months of discussions over outstanding payments.
“Our gas supply ended last month. They told us going forward that if we don’t pay upfront, they will not supply us with gas,” he stated.
FG Owes Ibom Power N28bn
Umoh attributed the company’s inability to settle its obligations to the Federal Government’s outstanding debt, which he said forms part of the estimated N4 trillion legacy liabilities accumulated within the Nigerian Electricity Supply Industry between 2015 and 2024.
He disclosed that the Federal Government owes Ibom Power N28 billion, but has paid only about N12.3 billion, leaving an outstanding balance of approximately N15.7 billion.
According to him, the unpaid obligations have left the company unable to meet critical financial commitments, including payments to gas suppliers and scheduled maintenance of its generating units.
Beyond the gas supply challenge, he identified foreign exchange volatility, delayed maintenance prescribed by the Original Equipment Manufacturer (OEM), General Electric (GE), and inadequate project financing as factors that have further affected the plant’s operations.
GenCos, FG Meet Over N4tn Legacy Debt
The Ibom Power Managing Director disclosed that electricity generation companies and Federal Government officials were scheduled to meet in Abuja on Tuesday to negotiate a repayment framework covering about 52 per cent of the electricity market’s outstanding legacy debt.
He said the discussions would focus on obligations dating back to 2015, describing the debts as one of the biggest threats to the sustainability of Nigeria’s electricity sector.
Umoh lamented that the proposed repayment arrangement offered no compensation for years of inflation, exchange rate depreciation, or the opportunity cost of funds tied down in unpaid invoices.
“We’re talking about debts that are being repaid without interest, without consideration for depreciation in the value of money, and without considering the alternative use of those funds over the years,” he said.
He further disclosed that only about 50 per cent of the proposed settlement would be paid in cash, while the remaining balance would be settled through government bonds to be redeemed over time.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
