How Governor Otti is Transforming Abia's Power Supply with Strategic Acquisition of EEDC Stake | READ DETAILS

The Abia State Government has taken a major step towards achieving stable and independent power distribution with the ongoing process to acquire a 60% stake in Enugu Electricity Distribution Company (EEDC) assets within the Umuahia ring-fenced area. This initiative, spearheaded by Governor Alex Otti, OFR, is expected to boost electricity supply across Abia State and improve the economy.

During a high-level briefing at the Government House, Umuahia, on Friday, February 14, 2025, a consortium of top-tier consultants presented their initial due diligence report on the acquisition. The firms involved include Deloitte and Touche (Lead Consultant & Financial-Tax-Commercial Adviser), Ken Ahia SAN & Associates (Legal Adviser), Kosem Nigeria Limited (Technical Adviser), and Heritage Capital Markets Limited (Accounting Experts). The session was attended by representatives from Afrexim Bank, which is providing financial support for the acquisition.

Governor Otti emphasized the importance of ensuring a fair valuation of the assets to guarantee a balanced deal for both the state and the seller, Interstate Electrics Limited. He reiterated his administration's commitment to securing a sustainable electricity supply for Abia, leveraging Geometric Power Aba, which currently generates 75MW, with the potential to expand to 188MW once gas supply challenges are resolved.

Governor Otti explained that the long-term goal is to create a self-sufficient power sector that will serve all parts of Abia State. He noted that many Distribution Companies (DISCOs) across Nigeria are struggling due to poor valuation and underestimated operational challenges. However, the Abia government is determined to de-risk the acquisition, stabilize the power supply, and eventually divest to private investors.

He also referenced his recent visit to Geometric Power, Aba, alongside an EU delegation led by Massimo De Luca, the EU Cooperation Chief, where he explored ways to redirect excess power from Aba to Umuahia rather than the national grid.

"For me, this transaction is a must-do. The real question is, how do we execute it safely and efficiently while ensuring that all parties involved are satisfied? That is why we have assembled this team of experts to guide the process," Governor Otti stated.

The Umuahia EEDC ring-fenced area to be covered under this initiative spans:

Abia Central Zone: Umuahia-North, Umuahia-South, and Ikwuano

Abia North Zone: Arochukwu, Bende, Isiukwuato, Ohafia, and Umunneochi

Currently, Geometric Power supplies electricity to Aba and its surrounding areas, covering Aba-North, Aba-South, Isiala Ngwa-North, Isiala Ngwa-South, Obingwa, Osisioma, Ugwunagbo, Ukwa-East, and Ukwa-West. The new acquisition will expand coverage to more parts of Abia State, ensuring steady power supply across the region.

Key government officials who participated in the meeting include:

Engr. Ikechukwu Monday - Commissioner for Power and Public Utilities

Mr. Uwaoma Ukandu - Commissioner for Finance

Engr. Kachy Etolue - Special Adviser to the Governor on Energy

Mr. Osinachi Nwaka - Director-General, Ministry of Finance Incorporated (MOFI)

Mr. Charles Egonye - Technical Assistant to the Governor

These officials, alongside Afrexim Bank representatives, engaged with the consulting firms, addressing concerns and offering strategic input. The final Due Diligence Report is expected in the coming days, marking another critical step towards achieving Governor Otti's energy transformation agenda.

Governor Otti reaffirmed his commitment to providing reliable and cost-effective electricity to Abia residents. He assured that this acquisition will pave the way for an economic and industrial revolution in the state by ensuring uninterrupted power supply for businesses and households.

"This project is an experiment that has never been done anywhere in Nigeria, but we are making it work right here in Abia," the Governor declared.

With this strategic acquisition of EEDC's stake, the future of electricity distribution in Abia State is set for a revolutionary shift, positioning Abia as a model state for energy sufficiency in Nigeria.

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