FG Debt, Gas Shortage Cripple Operations Of Ibom Power Plant

Ibom Power Company Limited (IPC), one of Nigeria’s first independent state-owned power plants, lost nearly a full year of electricity generation in 2025/2026 after a prolonged gas supply crisis crippled operations at its 191-megawatt power plant, highlighting the deepening liquidity challenges across the country’s power sector.

The company disclosed that it received natural gas for just about 30 days over the past 12 months, forcing repeated shutdowns and leaving the plant idle for almost 11 months.

Managing Director of Ibom Power, Engr Camillus Umoh, who spoke during a media interaction with journalists in Uyo, said the Federal Government still owed the company about N15.7 billion out of a total N28 billion legacy debt accumulated since 2015.

According to him, the company’s liquidity position deteriorated to the point where its gas supplier, Acugas, has stopped extending credit and switched to a strict “pay-before-supply” arrangement.

The 191MW power plant, commissioned in 2010, relies on gas supplied from Acugas’ Uquo gas field in Akwa Ibom State through a 62-kilometre pipeline.    Engr Umoh said gas deliveries had been declining steadily for almost two years before eventually ceasing in June, 2026.

“For the past 360 days, our aggregated gas availability has been less than 30 days. Even during those few days, supply was not at optimal levels, with some deliveries at only 30 to 40 per cent of plant requirement. That forced us to operate below capacity or shut down completely,” he said.

He added that the company’s gas supply finally stopped in June, 2026 after years of mounting unpaid invoices.

“Our gas supply ended in June. The supplier informed us that unless payments are made upfront, they will no longer supply gas. They do not want to accumulate another decade of unpaid debts,” he said.

Beyond the outstanding invoices, he explained that Accugas was also contending with technical challenges requiring fresh investments, making it impossible for the company to continue financing gas deliveries on credit.

Umoh said Ibom Power’s experience reflects the wider financial crisis confronting the Nigerian Electricity Supply Industry (NESI), where electricity generation companies are collectively owed trillions of naira for power already delivered to the national grid.

He disclosed that GenCos were expected to meet with the Federal Government in Abuja to discuss/firm modalities for settling the outstanding legacy debts accumulated between 2015 and 2025.

Although the government has acknowledged about N4 trillion in outstanding obligations across the sector, he said only about 48per cent of the debt had been accommodated to-date under the current repayment framework.

“For Ibom Power, the total debt is about N28 billion. We have received roughly N12.3 billion, leaving an outstanding balance of N15.7 billion, which will be part of the discussions with government next week” he said.