Akwa Ibom State Government Repudiates Liquidation Claims for Ibom Power While Disclosing Strategic Debt Repayment Plan

Akwa Ibom State Government clears rumors on Ibom Power sale, disclosing a $560,000 quarterly debt repayment plan to Afreximbank to stabilize the utility.

By: AXL Media

Published: Mar 18, 2026, 5:54 PM EDT

Source: The information in this article was sourced from Independent Newspapers

Formal Refutation of Privatization Allegations

The Akwa Ibom State Government has moved decisively to quash rumors regarding the alleged sale of its premier power generation asset. In a formal communication released on Wednesday, the Commissioner for Information, Hon. Aniekan Umanah, characterized recent media reports claiming the facility was being liquidated as a wicked fabrication. The administration clarified that no executive approval has been granted to sell Ibom Power Company, whether as a functioning entity or as scrap material. By addressing these claims directly, the state aims to protect the reputation of its industrial infrastructure and reassure stakeholders that the facility remains a core component of the regional economic strategy.

Strategic Debt Restructuring and Fiscal Recovery

Instead of divestment, the current administration is focusing on a rigorous financial recovery program to unburden the power company from historical liabilities. The government disclosed that it is currently managing a $9 million loan originally secured from Afreximbank several years ago. To resolve this, Governor Umo Eno has authorized a structured fiscal intervention involving quarterly payments of $560,000. According to the Commissioner, this systematic approach to debt servicing is clear evidence of a commitment to long term value preservation rather than liquidation. The goal is to clear these standing obligations to restore the company’s creditworthiness and operational independence.

Infrastructure Revitalization and Concession Frameworks

The state is currently pursuing a dual track strategy that involves internal reforms and external private sector collaboration. Under a newly proposed concession framework, the government intends to invite private investors to assist in the financing and management of electricity assets to bridge the existing efficiency gap. However, the Commissioner emphasized that this does not equate to a transfer of ownership. The state maintains that it will retain full strategic control and 100 percent ownership of all electricity infrastructure, ensuring that public interests are protected while leveraging private expertise to modernize the aging power grid.