The government of Akwa Ibom State has moved to quell growing speculation regarding the future of the state-owned Ibom Power Company, categorically denying allegations that the facility has been slated for sale. In an official statement released on Thursday, the administration described reports of a liquidation plan as a "wicked fabrication" and urged the public to disregard claims that the critical infrastructure is being offloaded.

This denial, delivered by the Commissioner for Information, Aniekan Umanah, addresses a narrative that has swirled through local media circles, suggesting the state intended to dispose of the plant as scrap. The administration’s rebuttal clarifies a starkly different reality: the government is not liquidating assets but is instead actively executing a structured debt-repayment plan while implementing a new framework for private sector participation to revitalize the state’s electricity sector.

The Anatomy of a Fabrication

The rumor, which originated in an Uyo-based tabloid, struck a nerve in a state where energy infrastructure has long been a lightning rod for political and economic debate. For decades, Akwa Ibom has grappled with the paradox of being a leading oil-and-gas-producing region while simultaneously suffering from persistent, debilitating power shortages. Given the emotional weight of electricity access, any suggestion that the government is selling off the Ibom Power Company—the entity meant to secure energy independence—was bound to incite anxiety.

The government’s response was swift and uncompromising. By characterizing the reports as malicious and unfounded, the administration of Governor Umo Eno aimed to prevent a decline in investor confidence. The state maintains that no approval has been granted for the sale of the plant, either as a functional asset or as scrap metal. Officials argue that such misinformation is designed to undermine the ongoing, comprehensive reforms currently being institutionalized within the state’s electricity market.

Financial Realities and Debt Obligations

At the heart of the confusion lies the genuine financial complexity of the power plant, which has carried a heavy burden of legacy debt. The administration disclosed that it is currently servicing a $9 million loan (approximately KES 1.17 billion) obtained from the African Export-Import Bank, or Afreximbank, years prior. This financial encumbrance has historically hampered the company’s operational agility and its ability to procure the necessary spare parts and gas feedstock required for consistent generation.

To remedy this, the state government has instituted a rigorous fiscal discipline protocol. Governor Eno approved a structured quarterly repayment plan of $560,000 (approximately KES 72.8 million) on March 15, 2025. This commitment is intended to gradually liquidate the debt and free the company from the long-standing financial obligations that have constrained its potential. This repayment strategy serves as a tangible signal that the government views the power plant not as a liability to be offloaded, but as a core asset to be rescued and repositioned for long-term viability.

• Total Loan Liability: $9 million (approx. KES 1.17 billion).
• Quarterly Repayment Schedule: $560,000 (approx. KES 72.8 million).
• Key Objective: Debt liquidation and operational revival.
• Status of Assets: Retained under public-private ownership framework.

A Strategic Pivot Toward Reform

The controversy over privatization highlights the challenges of state-run enterprises in Nigeria’s complex electricity value chain. Ibom Power, with an installed capacity of approximately 191 megawatts, has often operated well below its potential due to the systemic issues—liquidity crises, gas supply shortages, and grid transmission limitations—that plague the wider national power market. Akwa Ibom’s current policy shift is designed to navigate these bottlenecks through a managed concession model.

Rather than outright privatization, the state has opted for a Private Sector Participation (PSP) framework. Under this model, the government retains strategic control and ownership of the assets while inviting private entities to finance, rehabilitate, and operate the infrastructure under strict regulatory oversight. To manage this transition, the state has created the Akwa Ibom Electricity Regulatory Commission and established Ibom Electricity Holdings Limited to oversee the investment portfolio. This structural reorganization is intended to decouple the political management of electricity from technical operations, effectively insulating the sector from the shifting winds of administrative cycles.

The Stakes for Regional Prosperity

The significance of these reforms extends far beyond the corporate health of a single power company. In East Africa and across the continent, governments are watching similar shifts in electricity sector governance as they seek to transition from state-led monopolies to market-based efficiencies. For Akwa Ibom, a reliable, stable power supply is the prerequisite for the state’s industrialization agenda. Without consistent energy, the state’s manufacturing sector remains stunted, unable to compete effectively in the regional and global markets.

The administration’s insistence on retaining ownership suggests a desire to ensure that electricity remains a public good, even as it harnesses private sector capital to drive growth. The success of this approach hinges on the government’s ability to execute its reform roadmap without interference from speculative misinformation. As the state moves to clear its legacy debts and modernize its generation capabilities, the focus remains on transforming the region’s natural resource wealth into tangible, reliable power for its citizens.

Ultimately, the government’s firm denial of privatization plans is more than a public relations exercise it is a declaration of intent to stay the course on its energy roadmap. Whether the administration can successfully bridge the gap between its ambitious electricity policies and the operational reality on the ground—where gas constraints and transmission bottlenecks persist—will be the defining test for Governor Eno’s tenure in the years ahead.