By Enitan Abel Johngold
A growing controversy has enveloped the Independent Power Plant (IPP) project initiated by host communities in OML 34, Delta State, following allegations of failure, counterclaims of misinformation, and emerging accusations of vested interests.
At the centre of the dispute is a recent publication by activist Chief Zik Gbemre, who described the community-driven power project as a failed initiative and called for its overhaul, including the engagement of a specific engineering firm.
However, the Secretary of the PGMOU Management Committee for the NAG-3 project, Comrade Igho Onobraekpeyan, has pushed back strongly, describing the claims as “misleading” and raising questions about possible personal interests behind the criticism.
INSIDE THE PROJECT
Investigations reveal that the IPP project was conceived in 2020 under the Project-Global Memorandum of Understanding (PGMOU) between NNPC Exploration and Production Limited (NEPL) and the host communities of Otor-Udu, Iwhrekan, and Otughievwen.
Rather than direct electrification by the oil company, the communities opted to deploy the 75% of their annual Community Development Support (CDS) allocation, ₦200 million (which is ₦150 million), into building an independent power facility.
Documents and committee records indicate that six tranches of payments have been made since 2021. Of the ₦1.2 billion received, about ₦900 million was committed to the project after deductions for administrative and community obligations.
A feasibility study pegged the communities’ power pneeds at roughly 1.4 megawatts. But due to funding constraints and rising foreign exchange rates, the committee scaled down initial delivery to a one-megawatt plant, with expansion plans embedded in the design.
WHAT EXISTS ON GROUND
A visit to the facility and technical briefings from the committee suggest that the core infrastructure, including generator units, control systems, Pressure Reduction and Metering System Serving Dual Purpose of CNG & Gas through the Bars, 2.5MW Protective Equipment Transformer, and civil works, has been completed.
Test runs conducted between late 2025 confirmed that the plant can generate electricity, with distribution trials indicating capacity to deliver between 12 and 18 hours of power daily, depending on demand levels.
This directly contradicts claims that the project failed to meet deliverables.
Yet, despite the apparent completion, the plant is not in sustained operation.
THE MISSING LINK: Gas Supply
Findings show that the biggest operational hurdle is not construction failure but fuel sustainability.
Running the plant on compressed natural gas (CNG), the committee disclosed, is prohibitively expensive. Each gas skid costing about ₦4.8 million lasts only three days, pushing projected monthly fuel costs to unsustainable levels.
Responsibility for securing a steady gas supply, according to the committee, lies with the leadership of the host communities, who have reportedly written to NEPL seeking support.
Until that issue is resolved, the plant risks remaining largely idle.
Another unresolved issue is the absence of a comprehensive metering system across the benefiting communities.
Energy experts say that without proper metering, even a functional plant could face challenges such as load mismanagement, revenue loss, and eventual system collapse.
The committee confirmed ongoing discussions with vendors but admitted resistance from some community members.
ALLEGATIONS AND COUNTER-ALLEGATIONS
The controversy deepened following Gbemre’s recommendation that a specific firm be engaged to redesign and execute the project, alongside calls for financial reconciliation and possible refunds.
But Onobraekpeyan has questioned the neutrality of that recommendation, alleging that the company in question has direct links to Gbemre’s family.
Though these claims could not be independently verified at the time of filing this report, the allegation introduces a new dimension to the dispute, raising concerns about potential conflict of interest in what is framed as public advocacy.
BIGGER QUESTIONS
The unfolding situation raises broader issues about community-driven infrastructure under the PGMOU framework:
Can host communities realistically deliver capital-intensive projects with limited and fluctuating funding?
What level of technical oversight exists to ensure value for money?
Should oil companies play a more direct role in critical infrastructure such as power?
And how can transparency be guaranteed amid competing interests?
While the committee insists the IPP is a success story constrained only by external factors, critics argue that a project that cannot sustain operations falls short of expectations.
For now, the Otor-Udu IPP stands in a grey zone, technically completed, functionally tested, but operationally uncertain.
Whether it evolves into a model of community-led development or becomes another stalled intervention may depend largely on how the gas supply challenge, governance concerns, and growing mistrust among stakeholders are addressed.