Ibom Power Company Limited (IPC) has revealed that its 191-megawatt power plant remained largely inactive for almost a year after a prolonged gas supply disruption brought electricity generation to a near standstill, underscoring the financial strain facing Nigeria’s power sector.
The state-owned generating company disclosed that it received natural gas for only about 30 days over the past 12 months, forcing repeated shutdowns and leaving the facility idle for the better part of the year. The disruption, according to the company, stems from longstanding unpaid debts that have weakened its ability to purchase gas and maintain operations.
Speaking during a media briefing in Uyo, the Managing Director of Ibom Power, Engr. Camillus Umoh, said the Federal Government still owes the company ₦15.7 billion out of a total ₦28 billion in legacy debts accumulated since 2015.
Umoh explained that the company’s worsening liquidity position prompted its gas supplier, Acugas, to abandon its previous credit arrangement and adopt a strict “pay-before-supply” policy, effectively cutting off gas deliveries until outstanding obligations are settled.
The power plant, commissioned in 2010, depends on gas supplied from Acugas’ Uquo gas field in Akwa Ibom State through a 62-kilometre pipeline. According to Umoh, gas supply had been declining steadily over the past two years before ceasing completely 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 Acugas could no longer continue supplying gas on credit after years of unpaid invoices, particularly as the company also faces its own operational and investment challenges.
“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,” Umoh stated.
The Ibom Power chief said the company’s experience reflects the broader liquidity crisis confronting the Nigerian Electricity Supply Industry (NESI), where electricity generation companies are collectively owed trillions of naira for power already supplied to the national grid.
He disclosed that power generation companies are expected to meet with the Federal Government in Abuja to discuss modalities for settling outstanding legacy debts accumulated between 2015 and 2025. Although the government has acknowledged approximately ₦4 trillion in liabilities across the sector, Umoh said only about 48 per cent of the obligations have so far been captured under the current repayment framework.
“For Ibom Power, the total debt is about ₦28 billion. We have received roughly ₦12.3 billion, leaving an outstanding balance of ₦15.7 billion, which will be part of the discussions with government next week,” he said.
The prolonged shutdown highlights the growing consequences of persistent payment challenges in Nigeria’s electricity industry, where mounting debts continue to threaten power generation, energy security and investment across the sector.
