Otti signs Abia electricity bill into law, says it’ll attract investors

Alex Otti, governor of Abia, has signed the state’s electricity bill into law, thereby empowering the state to regulate its electricity market.

Speaking at the signing ceremony on Monday, Otti said the legislation, initiated by the executive, received a swift passage by the Abia house of assembly.

“This law will ensure that we protect the investments made by Aba Power while granting the government the latitude to regulate,” Otti said.

“It is a document that will stand the test of time, protecting existing and prospective investors in the energy sector.”

The governor disclosed that the bill benefited from the input of 15 international power experts from the United States, Canada, south-east Asia, and Europe, who contributed their expertise pro bono.

He added that Banwo and Ighodalo, a Nigerian law firm, refined the bill’s legal framework before it was enacted.

According to Otti, Abia has a unique electricity framework, with a ring-fenced power system covering Aba south, Aba north, Osisioma, Obingwa, Ugwunagbo, Ukwa east, Ukwa west, Isiala Ngwa south, and Isiala Ngwa north local government areas (LGAs).

He said the state’s independent power initiative, Aba Power Limited, has been under development for two decades and now serves as a model for power infrastructure in Nigeria.

With the new law in place, the governor said efforts are already underway to integrate the remaining eight LGAs into a new Umuahia ring-fence, ensuring stable electricity across the state.

He further disclosed that discussions are ongoing with Geometric Power, the parent company of Aba Power Limited, to expand electricity distribution beyond Aba.

Otti also announced plans to establish the Abia State Electricity Regulatory Authority (ASERA) to ensure an efficient and investor-friendly power sector.

He commended the 8th house of assembly for its diligence in reviewing and passing the bill, noting that the legislation positions Abia as a top destination for private investment in power generation.

The governor also hinted at the possibility of Abia supplying electricity to other south-eastern states, creating an additional revenue stream.

‘ELECTRICITY BILL ADDRESSES VANDALISM, ENERGY THEFT’

Also speaking, Ikechukwu Monday, commissioner for power and public utility, said the law aligns with the Electricity Act 2023, allowing Abia to establish its own regulatory framework and attract investment in the power sector.

“Notably, Abia is one of the few states in Nigeria with a ring-fenced power zone covering nine local government areas, allowing for off-grid operations,” Monday said.

“Additionally, the state hosts two distribution companies: Aba Power Ltd. and Enugu Electricity Distribution Company.”

He said the law has been designed to promote local participation and manpower development in the power sector.

The commissioner added that the law addresses critical issues such as vandalism, energy theft, and investment security, which have long hindered the growth of the power sector.

Monday also said the legislation makes clear provisions for investor protection, as the government hopes to create a more attractive business environment for local and foreign stakeholders.

He added that ASERA would oversee the implementation of the new electricity market framework and the process of setting up the agency would be completed within the next six to twelve months.