Governor Otti signed the Abia Electricity Bill into law and targeted a 60 per cent stake in EEDC.
NewsOnline Nigeria reports that Governor Alex Otti of Abia State has signed the Abia State Electricity Law, a landmark legislation aimed at regulating the power sector, protecting investors, and expanding electricity access across the state.
The law, initially introduced as an Executive Bill, was quickly but carefully passed by the Abia State House of Assembly before Otti’s assent on Monday, March 17 in Nvosi, Isiala Ngwa South Local Government Area.
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Otti emphasized that the law provides a strong legal framework for electricity governance, ensuring efficient power distribution and boosting investor confidence. He stated that it would protect the investments of Aba Power Ltd while allowing the government to effectively regulate the sector.
The law was shaped with input from 15 international energy experts from the United States, Canada, Southeast Asia, and Europe, who provided their expertise pro bono. To ensure compliance with global standards, the government also engaged Banwo & Ighodalo, a top Nigerian law firm, to refine the bill’s legal framework.
Speaking on the newly enacted electricity law on Monday, Abia State Commissioner for Information, Okey Kanu, revealed that the state government is in the process of finalizing a Memorandum of Understanding, MoU, with the Enugu Electricity Distribution Company, EEDC, to acquire a 60 percent stake in the company.
According to Kanu, this strategic move will grant Abia greater control over power distribution and enable the state to supply electricity to other Southeastern states, expanding its role in regional energy development.
Abia operates a unique ring-fenced electricity system, covering nine local government areas: Aba South, Aba North, Osisioma, Obingwa, Ugwunagbo, Ukwa East, Ukwa West, Isiala Ngwa South, and Isiala Ngwa North. This system is anchored by Aba Power Ltd, an independent power initiative that integrates generation, transmission, and distribution and has been under development for over 20 years.
The integrated power model in Aba now serves as a blueprint for Nigeria’s electricity infrastructure. To expand this initiative, the state government is working on incorporating the remaining eight local government areas into a new Umuahia Ring-Fence, which will ensure statewide power stability.
The Abia State Electricity Law also prioritizes renewable energy, positioning the state as a leader in sustainable power solutions. Otti revealed that the government is negotiating with Geometric Power, the parent company of Aba Power Ltd, to expand electricity distribution beyond Aba. Additionally, Abia plans to establish the Abia State Electricity Regulatory Authority, which will oversee sector efficiency, investor protection, and private-sector participation.
Otti commended the 8th Abia House of Assembly for its diligence in reviewing and passing the bill, stating that the law positions Abia as a top investment destination for private power projects. He also hinted at potential electricity exports to other Southeastern states, creating new revenue opportunities.
House Speaker Emmanuel Emeruwa emphasized that stable electricity is key to economic development, affirming the legislature’s commitment to supporting policies that drive Abia’s progress.
Commissioner for Power and Public Utility Ikechukwu Monday described the law as a game-changer, fully aligned with the Electricity Act 2023, granting Abia the autonomy to develop its own regulatory framework and attract private-sector investment. He highlighted that Abia hosts two distribution companies: Aba Power Ltd and Enugu Electricity Distribution Company, providing a unique opportunity for power sector development.
The legislation also addresses critical challenges such as vandalism, energy theft, and investment security while promoting local manpower development. It incorporates gender mainstreaming, ensuring inclusivity in Abia’s power sector.
Monday announced that the Abia State Electricity Regulatory Authority would be fully established within six to twelve months to drive market development, enforce compliance, and attract investments to the state’s electricity sector.
