NEWS
“We Have Entered Into an Agreement With EEDC to Literally Buy Them Off From the Umuahia Axis” — Gov. Alex Otti Discloses, Hails Revival of Alaoji Power Plant, Targets Stable Electricity Across Abia
The Executive Governor of Abia State, Dr. Alex Chioma Otti, OFR, has applauded the revival of the Alaoji Power Plant by the Niger Delta Power Holding Company (NDPHC), describing the development as a significant milestone in the state government’s determined push towards stable, reliable and uninterrupted electricity supply across Abia State.
Governor Otti gave the commendation while receiving the Managing Director and Chief Executive Officer of NDPHC, Hon. Mrs. Jennifer Adighije, alongside her management team during a courtesy visit to his office at Nvosi in Isiala Ngwa South Local Government Area.
The governor noted that the restoration of operations at the Alaoji facility was a major boost to the state’s industrialisation and economic transformation agenda, especially as the administration intensifies efforts to strengthen electricity supply across industrial hubs, commercial centres and residential communities in Abia.
Governor Otti further revealed that plans were already underway to expand the plant’s generating capacity from about 500 megawatts in simple cycle operation to nearly 800 megawatts through the ongoing combined cycle project.
“The last time I visited the Alaoji plant, it was regrettable that such capacity was wasting away. And I’m glad to learn that you have brought it back to life.
“There are even chances that the capacity will be expanded to 800 MW.
“I also do know that there is further expansion that will bring it to about 1,100 MW, subject to availability of funds,” Governor Otti noted.
Reaffirming the critical role of electricity in economic growth and human development, Governor Otti stressed that the power sector remains one of the top priorities of his administration since assuming office in 2023.
“The truth about the matter is that power is one of the most important infrastructures for driving growth in any economy.
“Production depends on power. Life itself depends on power. Schools, hospitals, everybody requires power,” the governor stated.
Speaking further, Governor Otti disclosed that the Abia State Government had already ring-fenced the Umuahia electricity axis outside the Aba Integrated Power Project corridor and was actively working towards assuming full control of electricity distribution in the area.
He revealed that the state government had concluded arrangements to acquire the Umuahia axis of the Enugu Electricity Distribution Company (EEDC), spanning from Umuahia to Arochukwu and Umunneochi, adding that the transaction was already nearing completion.
According to the governor, the move would substantially place electricity generation, regulation and distribution structures within the control of the state government.
“We have entered into an agreement with EEDC to literally buy them off from the Umuahia axis all the way to Arochukwu and Umunneochi. That agreement has been signed and we are at the point of payment,” he said.
Governor Otti further explained that the establishment of the Abia State Electricity Regulatory Agency had strategically positioned the state to effectively regulate and manage its electricity market in line with the provisions of the Electricity Act.
The governor expressed confidence that collaboration with NDPHC would enable Abia State to wheel electricity directly from the Alaoji Power Plant to the remaining eight local government areas outside the Aba ring-fenced zone.
“The last time we looked at the eight local governments, we believed that anywhere about 100 megawatts would serve them.
“So I would like us to sit down and work out modalities under which we can wheel power from Alaoji. It is a low-hanging fruit because the distance is short,“ he said.
Earlier in her remarks, the NDPHC Managing Director, Engr. Jennifer Adighije, informed the governor that the Alaoji Open Cycle Power Plant, one of the company’s ten generating plants, had successfully resumed operations after extensive rehabilitation works.
Engr. Adighije disclosed that the 450-megawatt facility was shut down in 2023 due to disputes involving metering discrepancies and gas supply challenges with TotalEnergies.
According to her, the company had resolved the issues, repaired defective gas pipelines, cleared outstanding debts owed to the gas supplier and successfully restored three out of the four generating units at the plant.
She explained that the plant now has the capacity to dispatch about 375 megawatts to the national grid, while maintaining that the evacuation infrastructure within the corridor remained fully adequate.
“The good news is that we have restored and fixed all the remedial works on the defective gas line.
“We’ve also been able to defray completely our past due obligations to Total, and Total has restored gas supply to the plant.
“We have the 132KV double circuit line from Alaoji to Ikot Ekpene and another 330KV circuit from Ikot Ekpene to Ugwuaji.
“So it is a very viable power generation plant for customers interested in grid-imported electricity,” she added.
The NDPHC boss also commended Governor Otti for what she described as bold reforms in Abia’s electricity sector, particularly the successful ring-fencing of the Aba industrial and commercial cluster.
She expressed the company’s readiness to partner strategically with the Abia State Government under the evolving electricity market structure enabled by the Electricity Act.
“We are now leveraging the Electricity Act and the transitioning of the electricity market towards bilateral trading.
“We are pursuing commercial customers, eligible customers, bilateral customers and state governments,” she said.
Engr. Adighije further reminded the governor that Abia State remains a shareholder in NDPHC and appealed to the state government to prioritise the company in future electricity partnership arrangements.
“We would pray that should you consider a power generation company to partner with, or as a franchisee, we would want you to look to NDPHC first before looking at others,” she said.
Also speaking, the Commissioner for Power and Public Utilities, Hon. Ikechukwu Monday, stated that the Abia State Government was already exploring several collaborative opportunities with NDPHC as part of ongoing efforts to tackle electricity challenges and expand power access across the state.
Mr. Monday noted that NDPHC operates one of the largest power generation facilities in sub-Saharan Africa through the Alaoji Power Plant located in Abia State.
He added that the Governor Otti-led administration had already recorded remarkable progress in restructuring the electricity sector, particularly within the Umuahia axis which comprises eight local government areas outside the Aba ring-fenced area.
“There are a lot of opportunities to collaborate in that part of the state,” he added.
The meeting was attended by top government officials including the Secretary to the State Government, Dr Emmanuel Meribole; the Chief of Staff to the Governor, Pastor Caleb Ajagba, Ph.D; and the Honourable Commissioner for Information, Prince Okey Kanu.