Inside Edo
How Benin power crisis revealed Edo do not have stake in Ossiomo plant
Written By: Abdullahi Izuagbe
09 Sep 2025 07:29 PM
Benin, Edo – In a dramatic turn of events that has plunged parts of Benin City into darkness, the celebrated Ossiomo Power Plant – long hailed as a flagship achievement of former Governor Godwin Obaseki's administration – has been revealed as a fully private enterprise with no state ownership or equity stake.
The facility's abrupt shutdown on September 1, 2025, due to an internal commercial dispute, has forced the current administration under Governor Monday Okpebholo to reconnect with the Benin Electricity Distribution Company (BEDC), marking a reversal of a five-year-old policy aimed at breaking BEDC's monopoly.
The revelations emerged during a high-level stakeholders' meeting convened by the Edo State Electrification Agency (ESEA) on Tuesday at the John Odigie-Oyegun Public Service Academy (JOOPSA) in Benin City.
Addressing the gathering, ESEA Managing Director Hon. Saturday Egbadon categorically distanced the state government from the plant's operations, stating that Edo is merely a customer under a Power Purchase Agreement (PPA) established during the Obaseki era.
"The government of Edo State is simply a customer of Ossiomo Power, as established by the last administration. The current shutdown is the outcome of a commercial dispute between Ossiomo Power and its Chinese partner, CCETC [Jiangsu Communication Clean Energy Technology], not an action of the state government," Egbadon explained.
Egbadon further disclosed that Ossiomo's management failed to notify Governor Okpebholo or any state officials before halting operations at its Ologbo facility, a 95MW gas-fired plant that supplied power to critical infrastructure including the State Secretariat, Government House, major hospitals like the Central Hospital Benin, the Nigerian Union of Journalists (NUJ) Secretariat, hotels, industries, streetlights, and private businesses across Benin City and environs. The outage has persisted for over a week, causing significant economic losses for consumers. Business owners, such as car wash operators and beverage vendors, have reported daily losses running into thousands of naira due to inability to pump water or refrigerate goods.
The crisis stems from an ownership tussle between Ossiomo Power's Nigerian management, led by local investor Dr. Uwa Igiehon, and its Chinese partner, CCETC. Ossiomo, which commenced development in 2013 and became operational in 2020, claims exclusive rights to the gas infrastructure and power facilities since 2008, backed by statutory licenses for generation and transmission in Edo State.
However, CCETC alleges it was not properly briefed on proceeds from electricity sales despite fulfilling its obligations for over four years under the joint venture.
Sources indicate the Chinese firm is attempting to assert control, potentially influencing state authorities, which Ossiomo warns could undermine Nigeria's local content policy and energy security.
Ossiomo Power, in a statement from its Deputy General Manager Engr. Francis Ekwe, attributed the outage to a "major technical issue" but acknowledged the broader commercial conflict.
The plant, developed as a public-private partnership (PPP) initiative, was marketed as a bold solution to Edo's chronic power deficits, providing up to 24/7 supply to subscribers. Yet, recent disclosures confirm the state holds no shares, rendering it powerless to intervene directly in the dispute.
In response to the blackout, the Okpebholo administration has expedited reconnection to BEDC, which it had disconnected from in 2020 to promote Ossiomo as an alternative. ESEA has engaged BEDC to take over supply for all former Ossiomo customers on its 11KV lines, including government facilities and private subscribers.
Engr. Kingsley Atseyinku, BEDC's Acting Chief Technical Officer, represented the company at the meeting and pledged full cooperation, waiving usual bureaucratic hurdles to restore power swiftly.
Many affected customers, he announced, will be migrated to BEDC's Band A feeders, guaranteeing 20–24 hours of daily supply.
Egbadon commended BEDC's responsiveness: "We must appreciate the BEDC management for their swift response and for waiving the usual paperwork and bureaucracy to ensure power was restored to critical state facilities."
As of September 8, some streetlights and government buildings have been reconnected, with the process ongoing for others. This move is expected to avert a total collapse of public services, though full restoration may take days.
Financially, the switch is a boon for the state. Under the previous administration, Edo paid Ossiomo an average of ₦194 million monthly for Government House electricity alone. Governor Okpebholo, upon assuming office, negotiated a review of these "inflated" rates, which Ossiomo refused. The state had already begun transitioning to BEDC's Band A in January 2025, reducing costs to ₦46 million monthly – a savings of ₦148 million per month for Government House alone.
These funds are being redirected to infrastructure projects like roads, schools, and hospitals, without incurring new loans.
The Ossiomo debacle raises serious questions about the transparency and sustainability of legacy projects touted as state initiatives. While the plant addressed Edo's power woes – generating 95MW and covering 200km of transmission lines – its private structure limited government leverage.
Analysts warn that such disputes could deter future investments in Nigeria's energy sector, emphasizing the need for clearer equity terms in PPPs.
As BEDC ramps up supply, Governor Okpebholo's administration vows to stabilize the sector.
"This is practical governance, not PowerPoint presentations," one official remarked, underscoring a shift toward cost-effective, reliable power.
For now, Benin residents hope the lights stay on, but the episode serves as a cautionary tale on the perils of opaque partnerships in critical infrastructure.
The facility's abrupt shutdown on September 1, 2025, due to an internal commercial dispute, has forced the current administration under Governor Monday Okpebholo to reconnect with the Benin Electricity Distribution Company (BEDC), marking a reversal of a five-year-old policy aimed at breaking BEDC's monopoly.
The revelations emerged during a high-level stakeholders' meeting convened by the Edo State Electrification Agency (ESEA) on Tuesday at the John Odigie-Oyegun Public Service Academy (JOOPSA) in Benin City.
Addressing the gathering, ESEA Managing Director Hon. Saturday Egbadon categorically distanced the state government from the plant's operations, stating that Edo is merely a customer under a Power Purchase Agreement (PPA) established during the Obaseki era.
"The government of Edo State is simply a customer of Ossiomo Power, as established by the last administration. The current shutdown is the outcome of a commercial dispute between Ossiomo Power and its Chinese partner, CCETC [Jiangsu Communication Clean Energy Technology], not an action of the state government," Egbadon explained.
Egbadon further disclosed that Ossiomo's management failed to notify Governor Okpebholo or any state officials before halting operations at its Ologbo facility, a 95MW gas-fired plant that supplied power to critical infrastructure including the State Secretariat, Government House, major hospitals like the Central Hospital Benin, the Nigerian Union of Journalists (NUJ) Secretariat, hotels, industries, streetlights, and private businesses across Benin City and environs. The outage has persisted for over a week, causing significant economic losses for consumers. Business owners, such as car wash operators and beverage vendors, have reported daily losses running into thousands of naira due to inability to pump water or refrigerate goods.
The crisis stems from an ownership tussle between Ossiomo Power's Nigerian management, led by local investor Dr. Uwa Igiehon, and its Chinese partner, CCETC. Ossiomo, which commenced development in 2013 and became operational in 2020, claims exclusive rights to the gas infrastructure and power facilities since 2008, backed by statutory licenses for generation and transmission in Edo State.
However, CCETC alleges it was not properly briefed on proceeds from electricity sales despite fulfilling its obligations for over four years under the joint venture.
Sources indicate the Chinese firm is attempting to assert control, potentially influencing state authorities, which Ossiomo warns could undermine Nigeria's local content policy and energy security.
Ossiomo Power, in a statement from its Deputy General Manager Engr. Francis Ekwe, attributed the outage to a "major technical issue" but acknowledged the broader commercial conflict.
The plant, developed as a public-private partnership (PPP) initiative, was marketed as a bold solution to Edo's chronic power deficits, providing up to 24/7 supply to subscribers. Yet, recent disclosures confirm the state holds no shares, rendering it powerless to intervene directly in the dispute.
In response to the blackout, the Okpebholo administration has expedited reconnection to BEDC, which it had disconnected from in 2020 to promote Ossiomo as an alternative. ESEA has engaged BEDC to take over supply for all former Ossiomo customers on its 11KV lines, including government facilities and private subscribers.
Engr. Kingsley Atseyinku, BEDC's Acting Chief Technical Officer, represented the company at the meeting and pledged full cooperation, waiving usual bureaucratic hurdles to restore power swiftly.
Many affected customers, he announced, will be migrated to BEDC's Band A feeders, guaranteeing 20–24 hours of daily supply.
Egbadon commended BEDC's responsiveness: "We must appreciate the BEDC management for their swift response and for waiving the usual paperwork and bureaucracy to ensure power was restored to critical state facilities."
As of September 8, some streetlights and government buildings have been reconnected, with the process ongoing for others. This move is expected to avert a total collapse of public services, though full restoration may take days.
Financially, the switch is a boon for the state. Under the previous administration, Edo paid Ossiomo an average of ₦194 million monthly for Government House electricity alone. Governor Okpebholo, upon assuming office, negotiated a review of these "inflated" rates, which Ossiomo refused. The state had already begun transitioning to BEDC's Band A in January 2025, reducing costs to ₦46 million monthly – a savings of ₦148 million per month for Government House alone.
These funds are being redirected to infrastructure projects like roads, schools, and hospitals, without incurring new loans.
The Ossiomo debacle raises serious questions about the transparency and sustainability of legacy projects touted as state initiatives. While the plant addressed Edo's power woes – generating 95MW and covering 200km of transmission lines – its private structure limited government leverage.
Analysts warn that such disputes could deter future investments in Nigeria's energy sector, emphasizing the need for clearer equity terms in PPPs.
As BEDC ramps up supply, Governor Okpebholo's administration vows to stabilize the sector.
"This is practical governance, not PowerPoint presentations," one official remarked, underscoring a shift toward cost-effective, reliable power.
For now, Benin residents hope the lights stay on, but the episode serves as a cautionary tale on the perils of opaque partnerships in critical infrastructure.
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