Aba Power Electric Ltd, Nigeria’s latest electricity distribution company, is working towards securing additional natural gas supplies from its partners to enhance electricity delivery across nine of the 17 local government areas (LGAs) it services. This initiative coincides with the Transmission Company of Nigeria (TCN) commencing regular operations on the Alaoji-Aba 132kV line.

In a statement released by Ugo Opiegbe, Managing Director of Aba Power, explained that “a team of dedicated and competent TCN engineers and technicians is scheduled to service the line from December 1 to 7 to ensure regular and quality bulk power supply to the Aba Ringfenced Area managed by Aba Power, Nigeria’s 12th distribution company (DisCo).”

Opiegbe also mentioned that discussions have been ongoing with the NNPCL and Heirs Energies to secure increased gas supplies to the 188-megawatt Geometric Power Plant located in the Osisoma Industrial Layout, Aba. He said, “We have, therefore, been in talks with the NNPCL and Heirs Energies to increase gas supply to the 188-megawatt Geometric Power Plant in the Osisoma Industrial Layout in Aba to enable us to provide electricity to the people, businesses, and communities in the nine LGAs we cover, and they have pledged to do their best to give us increased gas.”

The NNPCL and Heirs Energies jointly own Oil Mining Lease (OML) 17, located in the Owaza community in Ukwa West LGA of Abia State, with Heirs Energies as the operator.

According to Engineer Cliff Eneh, an electric power consultant in Lagos, the Geometric Power Plant receives gas from a 27-kilometre gas pipeline built to the OML. Eneh, who previously worked with both the Texas Power and Light Company in the United States and the defunct National Electric Power Authority (NEPA), explained, “Due to the insufficient gas supplies to the Geometric Power Plant, the electricity firm has been augmenting its own power generation with supplies from the Niger Delta Power Holding Company (NDPHC), which uses TCN’s 133kV and 330kV lines to make them available to the Geometric Power Plant.”

Eneh went on to note that, while the one-week maintenance on the line could affect electricity supply to Aba residents and businesses, Geometric Power has proactively worked to minimize disruptions. “This is why Aba residents and businesses might be affected by the scheduled one-week maintenance work on the Line, though Geometric Power has taken proactive steps to either minimize the impact on the customers or reduce it to the barest minimum,” he said.

Commending the collaboration between Geometric Power, TCN, and NDPHC, Eneh emphasized that the impact of the planned TCN shutdown could be avoided if gas supplies to the 188MW plant were sufficient. “The planned TCN shutdown would not have any impact on the Aba Ringfence if there were sufficient gas supplies to the 188MW plant,” he said.

Eneh also highlighted that, during nationwide outages in October and November 2024, residents in the Aba Ringfence did not experience any power disruptions due to an improvement in gas supply during that period, facilitated by the NNPCL and Heirs Energies. “People in the Aba Ringfence did not experience outages when there was a series of nationwide outages in October and November 2024 because there was a significant gas supply improvement to the area during this period by the NNPCL and Heirs Energies.”

Looking ahead, Eneh believes that the plant, once fully operational with sufficient gas, would not only supply uninterrupted electricity to all nine LGAs under its coverage but also contribute to the national grid. “Not only would the plant have started to provide full and uninterrupted electricity to all the nine LGAs under its coverage since commissioning last February 26, it would have been exporting power to the national grid to increase power availability in other parts of Nigeria since it already has installed three turbines of 47MW each, with the fourth to be installed anytime the gas issue is resolved.”

“The whole nation is waiting anxiously to see the NNPCL and Heirs Energies deliver on their promise to increase natural gas supply to the Geometric Power Plant which will, in turn, provide electricity to Aba Power Electricity Ltd,” he concluded. GMTNewsng

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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.

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.

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

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.

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