Nigeria's Electricity Debt Crisis Idles 191MW Power Plant

Nigeria's electricity debt crisis has left Ibom Power's 191MW gas-fired plant largely idle, after unpaid government obligations cut off gas supplies for almost a year.

The company disclosed in Uyo that it received gas for only about 30 days within the last 12 months, making regular electricity generation impossible.

The situation is significant because it shows how unpaid debts in the power sector are reducing electricity supply even where power plants are ready to generate.

The prolonged shutdown reveals the financial strain facing electricity generation companies. Many are struggling to pay gas suppliers because payments for electricity already supplied to the national grid have not been fully settled. The situation has weakened the ability of power producers to maintain operations and invest in their plants.

Gas supply stopped after unpaid bills

Ibom Power Managing Director, Engr Camillus Umoh, said the Federal Government still owes the company N15.7 billion from a total legacy debt of N28 billion accumulated since 2015.

He said the unpaid balance made it impossible for the company to meet its financial obligations to gas supplier Accugas, which has now adopted a strict pay-before-supply arrangement.

"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," Umoh said.

The 191MW plant depends entirely on natural gas supplied from the Uquo gas field in Akwa Ibom through a 62-kilometre pipeline. Gas deliveries reduced steadily over almost two years before stopping completely in June 2026.

Umoh said the supplier could no longer continue extending credit after years of unpaid invoices. He noted that Accugas also needs new investment to address technical issues, making credit supply no longer possible.

He said electricity generation companies are facing similar financial pressure because they are owed trillions of naira for electricity already delivered to the national grid.

Ibom Power has so far received about N12.3 billion, leaving an unpaid balance of N15.7 billion. Umoh said the issue will form part of discussions between generation companies and the Federal Government in Abuja.

Payment system weakens electricity generation

Umoh questioned the current debt repayment plan, which provides for only half of the outstanding amount to be paid in cash, while the balance will be issued as bonds.

He said the arrangement places more financial pressure on operators because the bonds would be redeemed below their full value.

The managing director also faulted the present electricity market settlement process. He said generation companies receive only about 30 to 40 per cent of their monthly invoices after waiting roughly 60 days, while there is no certainty on when the remaining balance will be paid.

He warned that the system is creating another cycle of unpaid obligations similar to the debts now being discussed.

Although the power plant has spent most of the past year without gas, Umoh said it can still generate between 82MW and 83MW whenever fuel is available. He noted that this is higher than Akwa Ibom State's current electricity demand of between 65MW and 75MW.

The company also faces another obstacle in transmitting electricity. The ageing 78-kilometre Aba-Itu transmission line can evacuate only about 70MW, while the Calabar-Itu transmission line has remained out of service for more than four years after vandalism damaged part of the network.

Umoh said these limits often force the company to reduce generation even when electricity can be produced.

He noted that the plant can still supply electricity directly within Akwa Ibom through its island mode whenever the national grid cannot take available power.

Umoh said restoring stable electricity supply will require outstanding debts to be settled, reliable gas supply to be restored, transmission facilities to be strengthened and better financial discipline to ensure electricity supplied to consumers is fully paid for.