fg-resolves-aba-ring-fenced-dispute-in-favour-of-geometricaba-power/
The Nigerian power sector has undergone significant transformations in recent years. Privatization efforts aimed to improve efficiency and increase access to electricity. However, these changes also presented challenges, as seen in the long-standing dispute between Geometric Power/Aba Power Limited and Interstate Electrics, owners of Enugu Electricity Distribution Company (EEDC), over the Aba ring-fenced area.
The Genesis of the Dispute
The dispute stemmed from the privatization exercise. Geometric Power, a consortium led by former Power Minister Bart Nnaji, had the “first right of refusal” for the Aba ring-fenced area. This meant they had priority to develop a dedicated power distribution network for the commercial and industrial hub of Aba. However, during privatization, Interstate Electrics acquired a majority stake in EEDC, which included the Aba ring fence.
This conflicted with the initial agreement, leading to a nine-year legal battle. The crux of the issue was ensuring a stable power supply for Aba’s businesses and residents. Geometric Power had already invested significantly in infrastructure development for the ring-fenced area.
A Resolution for Stable Power
Fortunately, in 2016, the Federal Government intervened and reached a resolution. The agreement saw the following:
- Carving Out the Aba Ring Fence: The disputed area was separated from the EEDC license and awarded to Geometric Power/Aba Power Limited.
- Settlement for Interstate Electrics: Geometric Power compensated Interstate Electrics for the initial bid they placed on the Aba ring fence.
- Excess Power to EEDC: Geometric Power was granted the flexibility to sell excess generated power to EEDC.
This resolution was hailed as a victory for all parties involved. Geometric Power could finally complete the Aba power project and deliver much-needed stable electricity. Businesses in Aba gained the prospect of a reliable power source, crucial for economic growth. The agreement also demonstrated the government’s commitment to resolving disputes and fostering a more efficient power sector.
The Road Ahead
The 2016 resolution paved the way for Geometric Power to move forward with the Aba power project. News reports in 2024 indicate the project is nearing completion, raising hopes for improved power supply in the region.
While the resolution is a positive step, challenges remain in the Nigerian power sector. Ensuring consistent nationwide power supply requires continued investment in infrastructure, improved transmission networks, and a focus on renewable energy sources.
The Aba ring-fenced dispute resolution serves as a case study for navigating complexities within the Nigerian power sector. It highlights the importance of clear agreements, respecting initial investments, and prioritizing solutions that bring stable electricity to communities. As the Aba power project progresses, its success can be a model for future developments aimed at powering a brighter future for Nigeria.
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#NigeriaPowerSector, #AbaPower, #GeometricPower, #PowerDistribution, #InfrastructureDevelopment
