Akwa Ibom Debunks Power Plant Sale Rumours, Unveils Reform Strategy
Rumours Dismissed as Baseless
THE Akwa Ibom State Government has rejected claims that it plans to sell Ibom Power Company, insisting that no such move is under consideration.
Reacting to the report, Information Commissioner Aniekan Umanah said the publication was misleading and lacked factual basis. He emphasised that the administration of Governor Umo Eno is focused on strengthening the state’s power infrastructure rather than disposing of it.
Ibom Power Company, a gas-fired independent power producer established by the state, plays a key role in supporting industrial development, despite grappling with operational and financial constraints.
Clearing Legacy Debts
A major component of the government’s strategy is resolving inherited financial liabilities that have weighed on the company’s performance.
The state has commenced repayment of a $9 million loan secured from the African Export-Import Bank (Afreximbank). The repayment plan, approved in March 2025, were quarterly payments of $560,000.
Officials say this approach will gradually ease the company’s debt burden, enhance its financial position, and create a more stable foundation for growth.
Institutional Reforms Underway
In addition to debt restructuring, the government is implementing institutional reforms to modernise the electricity sector.
These include the establishment of a dedicated regulatory body and the creation of Ibom Electricity Holdings Limited to oversee state-owned assets. The holding company is managed under the Akwa Ibom Investment Corporation, which is spearheading efforts to attract private sector participation.
The reform framework allows private investors to operate and maintain electricity infrastructure under concession arrangements, while ownership remains with the state.
A New Operational Model
According to officials, the concession model is designed to improve efficiency by transferring operational risks to private investors while ensuring accountability through regulatory oversight.
The government maintains that this approach will address longstanding inefficiencies in the sector without increasing financial strain on public resources.
Addressing Power Supply Concerns
While acknowledging persistent electricity outages, the government noted that transmission and distribution fall under federal jurisdiction, limiting the state’s direct control.
Nonetheless, it said ongoing collaborations with relevant authorities aim to improve electricity supply and support economic activities across Akwa Ibom.
