Politically speaking, every genuine investor who is interested in
the power sector in Nigeria must be encouraged to come and do business here
because the sector is still very “green” and an investment destination, given
her current paltry available installed capacity of 14,000MW for a population of
over 200,000,000.
The government is aware of the need to create an enabling
environment in order to encourage investment in the power sector as shown in
the recent law that decentralized the sector and also, the steps the Presidency
took by intervening to clear every legal hurdle that threatened to stall this
project.
It is noteworthy that this 181MW end-to-end project is located in
the Osisioma Industrial Layout of Aba in Abia state and was executed by a
non-state actor, Professor Barth Nnaji after discussions with the then World
Bank President James Wolfensohn and the then Nigeria’s Finance Minister Ngozi Okonjo-Iweala
following their observation that power supply was the greatest challenge to
both large-scale and medium-scale industrialists in Aba that is reputed to be
the hub of indigenous manufacturing in Nigeria.
Nnaji was prevailed upon to replicate similar Abuja 22MW
Geometrics project that he was a part of in Aba. The Aba Geometrics power station is scheduled
to be commissioned by Mr. President on February 26.
We look forward to see other interested investors emulate this act
by indicating interest to invest in the power sector, particularly at this time
that the power sector has been moved from the exclusive to the concurrent list.
Apart from non-state actors, the 36 sub-nationals in Nigeria are
expected to take advantage of the electricity law and invest in electricity
either directly or indirectly in order to close the existing energy gap and stimulate
our ailing economy.
The Geometrics Power project is end-to-end because it has its own
distribution network to distribute power to 9 out of the 17 local governments
in Abia state and a 27-kilometer gas pipeline from Owaza in Ukwa West LGA in Abia
state.
In addition to guaranteeing 24-hour power supply in its area of
operation, it will be interesting to see the Plant engage in cross-border
electricity trading (electricity export and import during periods of surplus
and shortfalls) with both the Enugu Electricity Distribution Company (EEDC) and
Transmission Company of Nigeria (TCN). As time goes on, the Plant should
consider the diversification of its energy mix by exploring other methods of
electricity production like renewable sources.
On their part, customers are expected to behave responsibly by the
timely settlement of their bills and not getting involved in energy theft.
Last but not the least, this laudable effort is expected to draw
more genuine investors into the power sector in Nigeria because electricity is
pivotal to economic growth and development and the present energy deficit is
not desirable for the industrialization of the country.
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