Ibom Power Seeks N12bn Bailout Amid Crisis

Ibom Power Plant, wholly owned by Akwa Ibom, is requesting a bailout of N10 billion to N12 billion from the state government to prevent total collapse due to gas supply constraints and unpaid salaries. The plant, which has only operated for about 34 days in the past year, faces a monthly gas invoice of N1.5 billion but has only received 40% of payments, leading to a demand for an escrow covering six months from gas supplier Acugas.

The plant employs approximately 140 workers and has not paid salaries for over seven months, accumulating a backlog exceeding N1 billion. The crisis stems from the expiration of a 10-year Gas Sales and Purchase Agreement with Accugas in December 2023, replaced by a 24-month interruptible supply deal in July 2024, resulting in persistent shutdowns.

Power expert Mr. Eyo Ekpo stated that restructuring is necessary, as the plant's issues are due to selling electricity into a non-paying market rather than a lack of funding from the state.