Ibom Utility is an independent power distribution network licensed by the Nigerian Electricity Regulatory Commission (Nerc) on January 20, 2023, to distribute electricity in selected locations in Akwa Ibom State.
It is incorporated as a power distribution company (DisCo), just like the 11 legacy DisCos that currently operate in Nigeria. It is the first such license awarded to a sub-national government after the unbundling of Nigeria’s electricity sector in 2013, although most publications wrongly attribute this to Enugu state.
Nigeria’s recently passed Electricity Act (2023) delineates electricity along state and regional lines and now permits state governments to own and operate their own distribution companies. This never happened before.
How will this affect PHEDC?
Under the new law, power generation companies (GenCos) like Ibom Power can now enter into bilateral offtake agreements with multiple DisCos, not just the Port Harcourt Electricity Distribution Company (PHEDC) but also others like Edo, Ibadan, and Eko.
“What the new Electricity Act has done for us is giving us the opportunity to sell our power to other Discos. Because one of the challenges we have is that the distribution company, sometimes, does not take sufficient load,” a worker at the state-owned Ibom Power said.
Ideally, Ibom Utility should be the first offtaker but the newly created DisCo currently lacks the necessary carrying and distribution infrastructure—such as injection substations and transformers. Once these are in place, it will directly compete with PHEDC, whose franchise currently covers Akwa Ibom, Rivers, Cross River, and Bayelsa States.
“So, now, if PHEDC, which is the company that has the license to distribute in this region right now, fails to take the load, the state company [ Ibom Utility] can work towards taking the load,” the source added.
Why does this matter for Akwa Ibom?
Aside from hosting one of Nigeria’s foremost independent power plants (IPPs), the creation of Ibom Utility gives Akwa Ibom State the advantage of both generating and distributing electricity through these state-owned companies.
The State’s Ibom Power began commercial operations in December 2009 with a nameplate capacity of 191MW. In recent years the plant has faced a ton of challenges ranging from leadership to gas supply deficits and financial concerns that have impacted its operations.
In February 2025, Ibom Power’s generation output dropped 8% to 138 MW, from its previous peak of 150 MW. The plant’s management assured the State’s 7 million+ citizens, who have endured unreliable power for years, that corrective measures were being implemented to restore it to full capacity.
“Kudos to Nerc! My transfer to Akwa Ibom State by the Federal government has honestly been the most traumatising period of my life because of the very poor state of electricity by PHEDC. I pray this development will greatly improve power supply in the state that has been so bad,” said Lydia Okon following the license award for Ibom Utility.
However, in a bold move aimed at addressing these perennial issues, the government is hosting the state’s first-ever electricity summit this September 2025 in Ikot Ekpene.
The summit is expected to bring together key stakeholders to design a comprehensive framework for overcoming existing challenges and setting Akwa Ibom’s power sector on a path of sustainable growth.