Abia Governor Alex Otti Signs Electricity Bill Into Law

Abia governor Alex Otti signs electricity bill into law. The governor said the integrated power initiative now stands as a model for power infrastructure in Nigeria.

Gov. Alex Otti of Abia has signed the Abia State Electricity Bill into law, setting the stage for a new era of energy regulation, investment protection, and power expansion in the state.

Speaking after signing the bill into law on Monday in Nvosi, Isiala Ngwa South Local Government Area, Mr Otti said the legislation, which emanated from the Executive, received swift but thorough 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.

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

The governor said the bill benefited from the expertise of 15 international power experts from the United States, Canada, Southeast Asia, and Europe, who contributed pro bono.

He added that the state engaged Banwo & Ighodalo, a top-tier Nigerian law firm, to refine the legal framework of the bill before it was signed into law.

According to him, Abia has a unique electricity framework, with a ring-fenced power system that covers Aba South, Aba North, Osisioma,Obingwa, Ugwunagbo, Ukwa East, Ukwa West, IsialaNgwa South and Isiala Ngwa North Local Government Areas (LGAs).

He said the state has Aba Power Ltd., an independent integrated power initiative, covering generation, transmission, and distribution,  which had been in development for two decades.

The governor said the integrated power initiative now stands as a model for power infrastructure in Nigeria.

Mr Otti said with the law in place, the government had started making efforts to integrate the remaining eight LGAs of Abia into a new Umuahia Ring-Fence, ensuring stable electricity across the state.

He said the legislation prioritises renewable energy solutions, positioning Abia as a leader in sustainable power initiatives.

Mr Otti disclosed that discussions were underway with Geometric Power, the parent company of Aba Power Ltd., to expand electricity distribution beyond Aba.

He added that plans were underway to establish the Abia State Electricity Regulatory Authority (ASERA) to ensure that the sector remains efficient and investor-friendly.

Mr Otti commended the 8th Abia State House of Assembly for its diligence and expertise in reviewing and passing the bill.

He said the  law had positioned the state as a choice destination for private investment in power generation, ensuring a more stable and efficient electricity supply for businesses and residents.

Mr Otti also hinted at the potential for Abia to supply electricity to other Southeastern states, generating additional revenue for the state.

The Speaker of the House of Assembly, Emmanuel Emeruwa, said that power plays a vital role in the achievement of development strides in the state.

Mr Emeruwa said:” We understand the rebuilding agenda of the present administration that is why we are working hand in glove with the Executive arm of the government.”

Also, the commissioner for power and public utility, Ikechukwu Monday, said the law would be aimed at creating a robust and reliable power market in the state.

Mr Monday said the law, which aligns with the Electricity Act 2023, would enable Abia to establish its own regulatory framework and attract investment in the power sector.

He described the legislation as a  product of extensive collaboration with global stakeholders and experts, tailored to the unique electricity ecosystem of Abia.

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

He noted that the law had been designed to promote local participation and manpower development in the power sector.

Alex Otti

“Abia people are highly skilled, and this law ensures that we build the capacity needed to support not just the state’s power industry but also contribute to the global energy workforce,” he said.

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

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

He said  the legislation incorporates gender mainstreaming, ensuring inclusivity and diversity in Abia’s power sector in line with global best practices.

Mr Monday said 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.

“This authority will be responsible for driving the development of Abia’s electricity market, ensuring compliance with regulations, and facilitating investment in the sector,” he added.