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Civil society groups and experts demand annulment of Savannah Energy’s audit report on Ibom Power Company, citing conflict of interest and lack of transparency, while urging a fresh independent audit of all state-owned investments.

There is a renewed call for the annulment of the audit report conducted by Savannah Energy on Ibom Power Company (IPC), the Akwa Ibom State-owned power firm, and for the engagement of independent and qualified audit firms to carry out a fresh assessment of the company’s operations.

Governor Umo Eno, shortly after assuming office in 2023, signed a Memorandum of Understanding (MoU) with Savannah Energy, owners of Accugas—the gas suppliers to Ibom Power—to conduct a technical audit aimed at identifying operational challenges and repositioning the plant for optimal performance.

The audit, supervised by the Akwa Ibom Investment Corporation (AKICORP), was submitted to the governor in April 2024, but soon became mired in allegations of conflict of interest and claims that the auditors never visited the facility.

Conflict Of Interest Allegations

The Open Forum, a non-governmental organisation in the state, was the first to raise concerns about the ethical validity of appointing Savannah Energy—a commercial partner and gas supplier—to audit Ibom Power.

The group described the arrangement as a violation of international auditing standards, including the IFAC Code of Ethics and ISA 200/220, arguing that it undermined credibility, transparency, and public confidence.

Forum Calls For Comprehensive Review

The Convener of Open Forum, Mathew Kofi Okono (MKO), called for a comprehensive independent audit not only of Ibom Power but also of all government-owned investments under AKICORP, which he described as being in derelict condition.

Power Sector Challenges Persist

Nearly two years after the audit report was submitted, power supply in Akwa Ibom State remains unstable. The company has seen little improvement aside from internal reforms and the sack of its Managing Director, Dr. Mayen Etukudoh.

Etukudoh was dismissed after revealing before the Akwa Ibom State House of Assembly that Ibom Power had not received funding from the state government despite annual budgetary allocations since 2016.

He also disclosed that $80 million reportedly allocated by the Federal Government to Ibom Power never reached the company’s account.

Despite his replacement, power supply in the state remains dependent on the national grid, with minimal contribution from Ibom Power.

Questions Over Power Reform Committee

In response to the state’s power challenges, Governor Eno recently constituted a Power Reform Implementation Committee, managed by a consultant, to find lasting solutions to blackouts.

However, critics have described the committee as lacking technical expertise in electricity generation, transmission, and utility management.

Engr. Emmanuel Eno, a London-based Akwa Ibomite, criticised the committee’s composition, calling it an example of “professional negligence.”

Similarly, Prof. Akpan Ekpo, former Vice Chancellor of the University of Uyo, urged the government to engage indigenous experts to revive Ibom Power, describing power reform as a technical matter, not a political one.

Calls For Ibom Gas Company And MoU Review

In a statement issued on Monday, Okono urged the state government to establish an Ibom Gas Company to coordinate investments in the gas sector and ensure uninterrupted gas supply to Ibom Power and other industries.

He also called for a review of the 2009 Gas Sales and Purchase Agreement (GSPA) between the state and Savannah Energy (formerly Seven Energy), as well as the 69km gas pipeline project.

Recalling the history of the agreement, Okono noted that the Akwa Ibom State Government under former Governor Godswill Akpabio signed a $66 million GSPA with Seven Energy in 2009 to build gas infrastructure for Ibom Power.

He added that the pricing structure of the agreement, which initially saw the state paying $2 per unit instead of 40 cents, later shifted in favour of the state, generating revenue for government coffers.

Hope For Power Sector Revival

Okono expressed optimism that with decentralised power policy, Ibom Power’s existing infrastructure, and abundant gas resources, Akwa Ibom could become a model for power sector reform in Nigeria if managed transparently and professionally.