The Akwa Ibom State Government has disclosed plans to seek a competent private investor to rehabilitate and manage the state-owned Ibom Power Company Limited, IPC, following persistent technical and financial challenges that have continued to hamper its optimal operations and service delivery.

The disclosure was made by the Commissioner for Power, Dr. Iniobong Robson, during the 13th edition of the Media Interactive Session held in Uyo, the state capital, where members of the State Executive Council briefed journalists on the activities and programmes of their respective ministries.

Dr. Robson was responding to concerns raised by journalists and members of the public over the current state of the power company, particularly its dwindling generation capacity, operational inefficiencies and the reported outstanding salaries owed to its workers.

According to the Commissioner, only one out of the three turbines installed at the Ibom Power Plant is currently operational, with an installed generating capacity of just 50 megawatts, a situation which he admitted is far below the expected capacity and has significantly affected the company’s revenue and overall performance.

He explained that the power plant, which was established to boost electricity supply to Akwa Ibom State and the national grid, has been grappling with serious technical constraints, including aging equipment, inadequate maintenance and lack of spare parts, which have rendered two of its three turbines non-functional.

Beyond the technical challenges, Dr. Robson revealed that the company is also facing severe financial difficulties, largely occasioned by poor remittance for electricity supplied to the national grid, noting that the company currently receives only about 30 per cent of its billed revenue from the electricity market.

He stated that the poor collection efficiency and the illiquidity in the Nigerian Electricity Supply Industry, NESI, have had a telling effect on the operations of Ibom Power Company, making it difficult for the company to meet its financial obligations, including payment of workers’ salaries, maintenance costs and procurement of essential operational inputs.

The Commissioner, however, assured that the state government is not folding its arms but is taking proactive steps to address the challenges, including the decision to bring in a private investor with the requisite technical expertise and financial muscle to rehabilitate the plant and manage it efficiently.

He clarified that the intention of the government is not to outrightly sell the company but to enter into a strategic partnership arrangement where the private investor will invest in the rehabilitation of the plant, improve its generation capacity and manage it profitably while the state retains ownership of the asset.

According to him, the planned private sector participation will not only revive the power company but will also ensure its long-term sustainability, efficiency and contribution to the industrialisation drive of the present administration led by Governor Umo Eno.

Dr. Robson further disclosed that the state government has set February 17, 2027, as the target date for completing the transition to a state-regulated electricity market, in line with the provisions of the Electricity Act 2023, which empowers states to regulate their own electricity markets.

He explained that with the new electricity law, Akwa Ibom State now has the constitutional powers to generate, transmit and distribute electricity within the state, and to establish the necessary institutional framework to manage its electricity market independently of the national regulator.

In preparation for the transition, the Commissioner announced that the state government has already established Ibom Electricity Holdings Limited, a special purpose vehicle that will be responsible for managing and coordinating all the state’s investments and interests in the power sector.

He emphasised that Ibom Power Company Limited has not been sold and that the government has no intention of relinquishing its ownership of the strategic asset, contrary to speculations in some quarters that the state government was planning to dispose of the company.

Dr. Robson assured that the state government remains fully committed to the growth and development of the power sector in the state, as a reliable power supply is critical to the realisation of the ARISE Agenda of Governor Umo Eno, particularly in the areas of industrialisation and rural development.

Meanwhile, the Commissioner for Information, Dr. Aniekan Umanah, who also spoke at the media interactive session, shed light on some of the financial burdens inherited by the present administration in the power sector, including a huge foreign debt.

Dr. Umanah disclosed that the state government inherited a nine-million-dollar debt involving the African Export-Import Bank, Afreximbank, which was linked to investments in the power sector, and which had become a major financial burden on the state.

He explained that upon assumption of office, the present administration led by Governor Umo Eno took immediate steps to restructure the debt in order to make it more manageable and to prevent it from crippling the state’s finances.

According to the Information Commissioner, following the successful restructuring of the facility, the state government now pays 500,000 dollars quarterly towards the settlement of the debt, a move which has helped to restore the state’s creditworthiness and financial stability.

Dr. Umanah noted that the transparent manner in which the present administration has handled the inherited debt is a testament to its commitment to fiscal responsibility, accountability and prudent management of public resources, which are hallmarks of the ARISE Agenda.

Also speaking at the event, the Chairman of the Akwa Ibom State Electricity Regulatory Commission, Arit Uya, said the commission is working assiduously to put in place the necessary regulatory framework to attract private investors and improve electricity services across the state.

Uya explained that the commission is currently developing robust guidelines, regulations and standards that will create an enabling environment for private sector participation, protect consumers and ensure that electricity service providers deliver quality and reliable services to the people of the state.

She stated that the commission’s mandate is to regulate the state electricity market in a manner that will encourage competition, promote efficiency and ensure that electricity is accessible, affordable and reliable for all Akwa Ibomites, in both urban and rural areas.

The Chairman assured that the regulatory commission will work closely with the Ministry of Power, Ibom Electricity Holdings Limited and other relevant stakeholders to ensure a smooth and successful transition to the state-regulated electricity market by the February 17, 2027 deadline.

The media interactive session, which is a quarterly initiative of the Akwa Ibom State Government, provides a platform for members of the State Executive Council to give account of their stewardship and interact with journalists on issues bordering on governance and development in the state.

Journalists at the event commended the state government for its openness and transparency in addressing issues in the power sector and urged it to expedite action on the rehabilitation of Ibom Power Company to improve electricity supply in the state and boost economic activities.

Stakeholders have also expressed optimism that with the planned injection of private capital and expertise, the Ibom Power Company will soon be restored to its optimal capacity, thereby enhancing electricity supply, creating jobs and contributing significantly to the industrialisation agenda of the state government.