In a major move to stabilize Abia State’s power supply, Governor Alex Otti received the initial due diligence report on acquiring a 60% stake in EEDC’s Umuahia assets.
Following its presentation on February 14, the report advances the state’s plan to improve electricity infrastructure and distribution capacity.
During the briefing, a consortium of four consulting firms outlined their findings after evaluating technical, financial, and legal aspects of the acquisition.
Deloitte and Touche served as the lead consultant and financial-tax-commercial adviser, with Ken Ahia SAN & Associates providing legal advisory services.
Kosem Nigeria Limited acted as the technical adviser, while Heritage Capital Markets Limited contributed accounting expertise.
Representatives from Afriexim Bank, the project’s financier, were also in attendance.
Governor Otti emphasized the importance of securing a fair and transparent deal for both Abia State and the seller, Interstate Electrics Limited.
He expressed optimism about the transformative potential of the acquisition, particularly when integrated with Geometric Power’s existing infrastructure.
Geometric Power currently produces 75 megawatts (MW), which is less than half of its 188 MW capacity.
Resolving gas supply challenges and enhancing infrastructure will enable Geometric Power to transmit electricity to the Umuahia zone, significantly improving power availability in the region.
“This initiative is groundbreaking for Nigeria and demonstrates what can be achieved with strategic planning and collaboration,” Governor Otti remarked.
He commended the consulting team for their thorough analysis and commitment to ensuring the project’s viability.
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The delegation from the Abia State Government featured key officials, including the Honourable Commissioner for Power and Public Utilities, Engr. Ikechukwu Monday.
The group included the Honourable Commissioner for Finance, Mr. Uwaoma Ukandu, and Special Adviser to the Governor on Energy, Engr. Kachy Etolue.
MOFI Director-General Osinachi Nwaka partnered with Technical Assistant Charles Egonye and Afriexim Bank representatives to scrutinize consultants’ findings.
Actively engaging, they questioned gaps and proposed refinements to strengthen the final report.
MOFI Director-General Osinachi Nwaka collaborated with Technical Assistant Charles Egonye. Together, they rigorously evaluated consultants’ findings alongside Afriexim Bank representatives.
During the review, they pinpointed weaknesses and provided actionable feedback.
This ensured the report’s accuracy and impact before final submission.
The final due diligence report is expected in the coming days, guiding the upcoming steps in the acquisition process.
Ultimately, Governor Otti emphasized his administration’s commitment to addressing Abia State’s power challenges while creating a supportive environment for economic growth and development.
Moreover, this initiative represents Governor Otti’s broader vision to establish Abia State as a leader in sustainable energy solutions.
By leveraging innovative approaches, the administration aims to effectively address long-standing infrastructure deficits in the region.
