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Aba Power Adjusts Tariff, Maintains Position as Nation’s Lowest

Aba Power’s decision to adjust its tariff while maintaining its position as the nation’s lowest demonstrates its commitment to its customers and the community.

Geometric Power Plant Osisioma

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“Band A Maximum Demand (MD) customers, who receive power for at least 20 hours daily, will now pay between N114.66 and N117.1 per kilowatt hour (KWh), from N109.79 KWh,” confirmed Ugo Opiegbe, Managing Director of Aba Power Ltd, in a telephone interview with our energy reporter, Ferdie Agu, this morning.

Opiegbe emphasized, “It is still the lowest in the country for that category of customers,” contrasting it with rates charged by other electricity firms.

“The Southeast zone of the Electricity Consumers Association of Nigeria (ECAN) had three weeks ago commended Aba Power,” noted Engineer Joe Ubani, ECAN Southeast Zonal Chairman, and Secretary Comrade Chris Okpara.

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Engineer Cliff Eneh, a former senior manager with the defunct National Electricity Corporation of Nigeria (NEPA), agreed, describing both Professor Bart Nnaji and Geometric Power as “hugely self-sacrificing.”

He further added, “Frankly, they behave like people in a vocation whose mission is to provide affordable, quality, and constant power to the citizens, despite all they have gone through in the last 20 years.”

Aba Power’s decision to adjust its tariff comes almost two months after the other 11 electricity distribution companies in Nigeria increased their rates for Band A customers due to the prevailing economic situation in the country. Despite this adjustment, Aba Power remains committed to providing affordable electricity to its customers.

“Our Band A MD customers are primarily industrialists who are unfortunately experiencing serious headwinds,” Opiegbe noted, emphasizing the importance of supporting industries in the region. He highlighted the efforts of Professor Bart Nnaji, the founder and chairman of the Geometric Power Group, in establishing the 188-MW gas-fired plant in the Osisioma Industrial Layout of Aba.

Professor Nnaji, a former Minister of Power, brought his expertise in manufacturing engineering from the United States to Nigeria, setting up the Aba Independent Power Project. Vice President Kashim Shettima commissioned this project on February 26, 2024, on behalf of President Bola Tinubu.

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The Southeast zone of the Electricity Consumers Association of Nigeria (ECAN) has been vocal in its support of Aba Power. They commended the company for retaining the approved tariff structure in nine of the 17 local government areas (LGAs) in Abia where it supplies electricity. This consistency reflects Aba Power’s dedication to its customers and the community it serves.

Engineer Joe Ubani and Comrade Chris Okpara of ECAN Southeast highlighted the unique position of Aba Power, noting that it has not benefited from the subsidies paid to other distribution companies since the privatization of the Power Holding Company of Nigeria (PHCN) assets in November 2013. This observation underscores the challenges faced by Aba Power in fulfilling its mission.

Engineer Cliff Eneh, drawing from his experience in both Nigerian and American power industries, praised the self-sacrifice of Professor Nnaji and Geometric Power. He emphasized their commitment to providing affordable, quality, and constant power to the citizens, despite the obstacles they have encountered over the years.

Aba Power’s decision to adjust its tariff while maintaining its position as the nation’s lowest demonstrates its commitment to its customers and the community. Despite the challenges facing the electricity sector in Nigeria, Aba Power continues to strive for excellence and affordability in its service delivery. GMTNewsng

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Aba Independent Power Project: A Strategic Investment, Say National Assembly Members

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The Aba Independent Power Project (Aba IPP), operated by Geometric Power Ltd, has been described as a strategic investment that should be replicated across Nigeria to drive the country’s rapid development. This assertion was made by two National Assembly members from Enugu State, Senator Okey Ezea of the Enugu North Senatorial District and Mark Chidi Obetta, the House of Representatives member representing Nsukka/Igbo Eze South.

“This independent power project, the largest investment in the Southeast worth $800 million, is strategic because it provides electricity, which is fundamental to the development of any economy,” Senator Ezea stated. He and Hon. Obetta made this remark during their visit to Professor Bart Nnaji, the former Minister of Power and founder of Geometric Power, at the company’s corporate headquarters in the Osisioma Industrial Estate, Aba, Abia State.

“Electricity drives the modern economy, but unfortunately in Nigeria, the power system has long been in a shambles. Geometric Power shows that Nigerians can run this critical sector professionally and to the highest international standards,” Ezea noted. He emphasized that without efficient power supply, the Southeast Development Commission would struggle to succeed, as seen with other similar commissions across the country.

Senator Ezea praised Geometric Power for situating the Aba IPP in the city, pointing out that Aba’s potential as Nigeria’s foremost indigenous industrial center had been stifled for decades due to unreliable electricity. He recalled that in March 2003, the then-World Bank President James Wolfensohn and Nigeria’s Minister of Finance, Dr. Ngozi Okonjo-Iweala, had urged Professor Nnaji to consider establishing a dedicated power plant for Aba manufacturers, following his successful leadership of the 22MW Abuja Emergency Power Plant project.

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He further called on Nigerian entrepreneurs to invest in local power plants to supply cities and towns, reducing technical losses and boosting development. Ezea also supported Power Minister Adebayo Adelabu’s suggestion to split the large coverage areas of distribution companies (DisCos) into smaller, more manageable territories, citing Aba IPP as a model of what could be achieved.

“Aba shows what should be done,” Ezea declared, while expressing concern about the irregular natural gas supply to the Geometric Power Plant since March 2024, just a month after Vice President Kashim Shettima commissioned the plant on behalf of President Bola Tinubu. “It is a national embarrassment that this new plant has been left without a single molecule of gas for months, forcing the utility to import electricity from the Niger Delta Power Holding Company (NDPHC) at an incredibly high cost in its desperation to provide power to its customers, especially industrialists,” he lamented.

However, Ezea commended the leadership of Geometric Power for their efforts to secure improved gas supplies in recent days from a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), after the initial gas supplier faced operational challenges. “Vice President Shettima and the NNPCL Group Managing Director, Melee Kyari, also deserve commendation for their patriotic role in improving gas supplies,” he added.

Hon. Obetta also weighed in, expressing optimism that once the gas issue is fully resolved and Geometric Power is able to fire all three available turbines, there will be consistent, quality, and affordable electricity for the nine local government areas within the Aba Ringfence. “Each turbine can generate 47MW, and once the gas issue is fully addressed, the power supply will be constant,” Obetta explained.

He encouraged the Enugu Electricity Distribution Company (EEDC), the five Southeast states, and even neighboring states to consider an agreement with Geometric Power for their electricity supply needs. “Geometric Power will soon approach the Nigerian Electricity Regulatory Commission (NERC) for an upgrade of their current 188MW generating license,” he added.

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Contrary to some opinions, Obetta argued that Southeast states do not need to build their own power plants. “Everything they need can be sourced from Aba,” he stated, highlighting the benefits of following the Geometric Power model. “This will be a win-win for all parties: the states, the power distribution companies, the power generating company, businesses, the people, and the communities. The rest of the country should emulate the Geometric Power example of building a captive market for efficient management and reducing technical losses and costs by sourcing power from nearby plants.” GMTNewsng

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Dangote Refinery Opens Direct Sales to Marketers as NNPC Ends Exclusive Agreement

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The Nigerian National Petroleum Company Limited (NNPC) has officially ended its exclusive purchase agreement with Dangote Refinery, a significant step toward a more competitive fuel market in Nigeria. This development allows independent marketers to now buy petrol directly from the refinery, marking the end of NNPC’s sole off-taker role. This decision is seen as part of the government’s broader efforts to further deregulate the oil sector and encourage a more open and dynamic market.

Industry observers have hailed the move as a potential game-changer. “This new phase is crucial for the Nigerian oil market, as marketers can now negotiate directly with Dangote Refinery on a willing buyer, willing seller basis. It could help stabilize prices and ensure efficiency in supply,” said an industry insider familiar with the operations of the refinery. The refinery, which has the capacity to meet a large portion of the country’s fuel demand, is expected to open up new pricing dynamics as marketers explore better options.

The NNPC’s exit comes on the heels of past controversies surrounding its control over petrol supply and pricing. In recent years, the company faced criticism for fuel shortages and allegations of inefficiencies, which heightened the public’s demand for a more deregulated and transparent system. Former Petroleum Minister, Timipre Sylva, during his tenure, had urged the NNPC to focus on core upstream operations rather than serving as a middleman in the supply chain. “This is a welcome development in the right direction. We cannot afford inefficiency at the cost of the people,” Sylva had remarked during a public event.

For marketers, this change opens up new opportunities. Chief Executive Officer of the Major Oil Marketers Association of Nigeria (MOMAN), Clement Isong, lauded the development, saying, “We are excited about the new arrangement. It allows us to cut out intermediaries, negotiate better deals, and pass on the benefits to consumers.” According to him, this could eventually lead to better price stabilization and end the volatility that has plagued the sector in the past.

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However, some experts believe there are concerns over the full implementation of the new system. Economic analyst, Dr. Emmanuel Uba, warned that while the new model holds promise, government regulators need to ensure that adequate checks are in place to prevent possible hoarding or manipulation of supply. “The success of this deregulation hinges on strong oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),” he noted.

The Dangote Refinery has long been seen as a game-changer for Nigeria’s energy sector, particularly as the country continues to struggle with insufficient refining capacity and heavy reliance on fuel imports. The refinery, when operating at full capacity, is expected to produce 650,000 barrels of crude oil per day, significantly reducing the need for petrol imports. This new sales framework is expected to further solidify its role in addressing these challenges.

In the past, the oil sector has been riddled with inefficiencies, with entities like NNPC often criticized for delays and bottlenecks. This latest shift could be the much-needed catalyst for a smoother fuel distribution system across the country, giving marketers the freedom to source products more efficiently and, by extension, potentially improving fuel availability for Nigerians. GMTNewsng

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MAN urges FG to expedite gas supply to Geometric Power, saving Aba’s industrial hub

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Insignia of Manufacturers Association of Nigeria

● McGrigor Ugoezu

The Imo/Abia Branch of the Manufacturers Association of Nigeria (MAN) has called on the Federal Government to swiftly resolve the natural gas supply issues affecting the Geometric Power plant in Osisioma, Aba. This move, they argue, will significantly enhance power availability in Aba, the commercial hub of Abia State, and revitalize the region’s struggling industries.

Speaking in an interview, Obasi Uba Ekeagbara, Chairman of MAN Imo/Abia Branch, expressed concern over the persistent closure of factories in the area, a situation he attributes to erratic power supply and inadequate raw materials. According to him, a steady power supply would breathe life into moribund factories and attract new investments to the region.

Ekeagbara, who is also the Executive Director of Akachi Industries Limited, revealed that MAN is making plans to meet with Bart Nnaji, Chairman of Geometric Power Limited, to discuss these challenges and explore the possibility of dedicated power lines from Geometric’s plant to key manufacturing facilities in Aba.

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“If the gas issue is solved and Aba gets steady power supply, dead factories would be revived, while new investments would come into the area,” Ekeagbara said. “Gas is primarily their main raw material, and Bart Nnaji has a lot of burden on his shoulders in terms of loan repayment. Do you think that he will not generate power and sell to pay back his loans, if he has gas?”

He emphasized that the gas supply situation is not only affecting Geometric but also other high-stake ventures in the country. “I pity my friend (Bart) because it takes a lion’s heart to do what he is doing. To organize a consortium of investors and put up billions of Naira for such a large-scale investment, only to face these challenges, is heartbreaking.

“The same issues holding Dangote from producing cheaper fuel are holding Geometric Power back, because they don’t have access to gas. Why can’t the government grant these people access to gas and crude? There is something wrong somewhere,” he lamented.

The management of Geometric Power recently expressed concerns over the severe shortage of natural gas supply to its 188-megawatt plant in the Osisioma Industrial Estate. According to them, this has drastically hindered the plant’s capacity to meet its objectives, thereby stalling economic growth in the state.

Ugo Opiegbe, Managing Director of Aba Power Limited Electric (APLE), the distribution arm of Geometric Power Group, highlighted the adverse impact on manufacturing firms, noting, “The unreliable gas supply is affecting hundreds of thousands of our customers, particularly manufacturing firms for whose sake Geometric Power built the $800m Aba Integrated Power Project. This project was designed to accelerate industrial development in Aba and its environs and serve as a model for electricity development in Nigeria, a nation whose growth has been severely hampered by the absence of reliable power.”

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In light of these challenges, a source within the energy sector, who wished to remain anonymous, stressed the urgency of government intervention. “The Federal Government needs to prioritize resolving the gas supply issue for plants like Geometric. If they don’t, we risk more industries shutting down. A stable power source is crucial for manufacturing, especially in hubs like Aba, where economic activity is heavily dependent on consistent electricity.”

Similarly, an industrial consultant based in Lagos, Ahmed Bako, encouraged the government to act swiftly, pointing out the broader economic implications. “This isn’t just about Aba; it’s about the entire manufacturing sector in Nigeria. If plants like Geometric have access to steady gas supplies, industries can thrive, and we’ll see significant improvements in job creation, revenue generation, and overall industrial output.”

These calls for action reflect growing concerns about the future of Aba’s industrial base and underscore the importance of reliable energy supply in driving Nigeria’s economic development. GNTNewsng

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