Geometric Power, a leading electricity provider in Nigeria, has commended the Abia State Government for its efforts to ensure reliable power supply in its utility's coverage area. This development brings to the fore the critical role of public-private partnerships (PPPs) in Nigeria's economic growth. Despite being a widely adopted development strategy, PPPs often face challenges in implementation. The Abia State Government's collaboration with Geometric Power is seen as a positive step towards addressing these challenges.
The commendation from Geometric Power comes after a series of outages in the Aba Ring-fenced Area, caused by disruptions in the gas supply chain. Governor Alex Otti of Abia State, his Commissioner for Power and Public Utilities, Ikechukwu Monday, and the governor's Special Adviser on Power and Public Utilities, Katchi Etolue, worked closely with Geometric Power's management and staff to resolve the disruptions. Their efforts have restored power supply to the area.
The disruptions in the gas supply chain were exacerbated by the aged gas pipelines, built over 50-60 years ago. The situation worsened after The Shell Petroleum Development Company (SPDC) exited Oil Mining Licence (OML) 17 in Owaza, Abia State, leading to protracted litigation and a decline in investments in gas facilities. Heirs Energies took over the operatorship of OML 17, and Governor Otti engaged with the company to address the gas supply issues.
In addition to resolving the gas supply disruptions, Governor Otti has been discussing with the Niger Delta Power Holding Company (NDPHC) and the Independent System Operator (ISO) to enable Geometric Power to receive supplies from the national grid during emergencies. These discussions have been fruitful, ensuring a more stable power supply in the area. The collaboration between the Abia State Government and Geometric Power is seen as a model for PPPs in Nigeria.
The importance of PPPs in Nigeria's economic development cannot be overstated. As noted by Francis Fukuyama, a leading global thinker, the lack of trust and cooperation between government officials and businesses can hinder economic growth. In his book, "Political Order and Political Decay," Fukuyama highlights the challenges faced by businesses in Nigeria, including corruption and extortion.
The Abia State Government's partnership with Geometric Power is a positive step towards addressing these challenges. By working together, the government and private sector can create a more conducive business environment, attracting investments and promoting economic growth. The laudation from Geometric Power is a testament to the Abia State Government's commitment to ensuring reliable power supply and promoting PPPs.
The development is also significant in the context of Nigeria's power sector reform. The privatization of the electric power sector in 2013 aimed to improve efficiency and service delivery. However, challenges persist, including the need for more effective PPPs. The Abia State Government's collaboration with Geometric Power provides a model for other states to follow, promoting a more stable and reliable power supply.
Key points
- The Abia State Government's partnership with Geometric Power is a positive step towards promoting public-private partnerships in Nigeria's economic development.
- The collaboration between the government and Geometric Power has restored power supply to the Aba Ring-fenced Area, following a series of outages caused by disruptions in the gas supply chain.
- The development highlights the importance of effective partnerships between government officials and businesses in promoting economic growth and addressing challenges in Nigeria's power sector.
