By Enitan Abel Johngold
The Secretary of the Management Committee of the Project-Global Memorandum of Understanding (PGMOU) for the NAG-3 project in OML 34, Comrade Igho Onobraekpeyan, has dismissed as misleading recent claims by activist Chief Zik Gbemre regarding the Independent Power Plant (IPP) project initiated by host communities in Delta State.
Addressing journalists at the project site, Onobraekpeyan provided a detailed account of the conception, funding, execution, and current status of the power project serving the communities of Otor-Udu, Iwhrekan, and Otughievwen.

The PGMOU, involving NNPC Exploration and Production Limited (NEPL) and the host communities, is overseen by a Management Committee chaired by Dr. A. E. Ideh, with Onobraekpeyan serving as Secretary.
PROJECT ORIGIN AND FUNDING STRUCTURE
Onobraekpeyan explained that the IPP project was conceived following negotiations between the communities and NEPL in September 2020, stemming from the development of the NAG-3 gas plant in the Utorogun area. As part of the agreement, the communities receive an annual Community Development Support (CDS) fund of ₦200 million.

He noted that although the communities initially requested that NEPL directly provide electricity, the company declined, prompting the communities to independently channel the CDS funds into developing their own power infrastructure.
According to him, six annual payments totaling ₦1.2 billion have been made, though only 75 percent, about ₦900 million, was allocated directly to the IPP project after statutory deductions for administrative and community structures.

A feasibility study conducted at the onset of the project in 2021 revealed that the combined energy needs of the three communities stood at approximately 1.4 megawatts. However, due to funding constraints, the committee opted to begin with a one-megawatt facility, with provisions for future expansion.
“We deliberately started with one megawatt because of limited funds, but we have built the infrastructure to scale up to four megawatts and beyond,” Onobraekpeyan said.

He highlighted the impact of exchange rate volatility on project costs, noting that the naira’s depreciation significantly reduced the value of available funds. At the time of procurement, a single 500KVA gas-powered generator cost about ₦120 million, requiring full upfront payment.
Despite these challenges, the committee proceeded with the acquisition of two generators, construction of the power plant, and supporting infrastructure, including administrative buildings, access roads, and flood mitigation structures.

The project reached completion in 2024, with technical testing conducted between October and December 2025 by representatives of the equipment manufacturers.
Onobraekpeyan confirmed that the facility successfully generated and distributed electricity during test runs, demonstrating its operational viability.
He explained that the plant is capable of supplying electricity to residential users and small businesses for up to 18 hours daily, though this may drop to about 12 hours when larger commercial users such as hotels are included.
GAS SUPPLY: The Major Constraint
He identified gas supply as the primary challenge hindering full operations, stating that reliance on compressed natural gas (CNG) is financially unsustainable.
“A single 7,500 standard cubic metre skid of gas costs about ₦4.8 million and lasts just three days. Monthly consumption could reach up to 100,000 SCM, making it impractical for continuous operation,” he said.

He clarified that securing gas supply is the responsibility of community leadership, who have already engaged NEPL on the matter.
METERING AND SUSTAINABILITY
Onobraekpeyan also stressed the importance of metering to ensure efficient electricity distribution and prevent wastage, revealing that discussions are ongoing with service providers to install meters across the communities.
Responding to Gbemre’s criticism that the project was a failure, Onobraekpeyan described the claims as inaccurate and driven by personal interests.
He alleged a conflict of interest, claiming that Gbemre had recommended a company allegedly linked to his family for the project’s overhaul.
“It is misleading to label the project a failure when it has been completed and tested. The issue is not engineering failure but sustainability, particularly gas supply,” he stated.
He further argued that the project represents a significant achievement for the host communities, demonstrating local capacity in executing complex infrastructure projects.
While welcoming constructive criticism, Onobraekpeyan urged stakeholders, including activists and oil companies, to support efforts to secure gas supply and expand the facility.
He noted that the current infrastructure can be scaled up to five megawatts, with additional land available for expansion to as much as 20 megawatts, potentially serving wider areas in Udu and Ughelli South Local Government Areas.
“This is a work in progress. What the communities have achieved with limited resources should be encouraged and built upon, not discredited,” he said.






















