The Akwa Ibom State Government has denied reports that it plans to sell Ibom Power Company.
The government says the administration of Governor Umo Eno is instead focused on repaying legacy debts and repositioning the firm through power sector reforms.
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In a statement issued on Wednesday, the Commissioner for Information, Aniekan Umanah, described a publication by an Uyo-based newspaper, alleging that the government plans to sell the company as “false, malicious and wholly unfounded.”
Ibom Power Company, a state-owned independent power producer, was established by the Akwa Ibom State Government to boost electricity generation and support industrial growth in the state.
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The company operates a gas-fired power plant and has faced operational and financial challenges over the years, including debt obligations and constraints linked to Nigeria’s wider electricity market structure.
The government said that rather than dispose of the company, it has commenced repayment of a $9 million facility obtained years ago from the African Export-Import Bank.
According to the statement, Mr Eno approved a structured quarterly repayment of $560,000 on 15 March 2025 to gradually liquidate the debt and free the company from longstanding financial obligations.
The government said the move is part of efforts to restore operational stability and ensure the long-term sustainability of the state-owned power generation asset.
The government also outlined ongoing reforms in the electricity sector, including a Private Sector Participation programme designed to attract investment while retaining public ownership of assets.
According to the statement, as part of the reforms, the state established the Akwa Ibom State Electricity Regulatory Commission to oversee the sector and created Ibom Electricity Holdings Limited to manage government-owned electricity assets.
The government said shares of the holding company have been vested in the Akwa Ibom Investment Corporation, which is also driving the concession process.
The statement said that under the proposed framework, private operators will finance, rehabilitate, and operate electricity assets for a defined period, subject to regulatory oversight and performance benchmarks, while the state retains ownership and strategic control.
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The model, according to the government, is expected to improve efficiency, transfer operational risks to private investors, and address longstanding challenges in the sector without increasing fiscal pressure on the state.
The government acknowledged ongoing power outages in parts of the state but said electricity transmission and distribution currently fall outside its direct control.
It added that engagements are ongoing with relevant institutions to improve supply to residents and businesses.
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