Geometric Power Plant speaks on Abia govt’s equity stake
The management of the Geometric Power Plant has confirmed the percentage of equity stake purchased by the Abia State Government in the company’s power plant in Aba.
Controversy
There was speculation that the Abia State Government contributed a five per cent equity stake in the power plant during the administration of Okezie Ikpeazu who served as the governor of the state from 2015 to 2023.
Data from the Abia State Accountant General’s 2022 financial report indicated that the state government invested N1.41 billion for the 5 per cent equity in the Geometric Power Plant.
Again, a letter from the management of the Geometric Power Plant, which surfaced online recently, shows that Mr Ikpeazu’s administration contributed a five per cent equity stake in the company.
In the letter dated 24 August 2022 and addressed to Governor Ikpeazu, the management of the power plant had asked the Abia State Government to pay them N565 million as the balance of its equity stake in the company.
The letter, seen by PREMIUM TIMES, was signed by the owner of the power plant, Barth Nnaji, a professor and former minister of power in Nigeria.
“We like to please request that you complete the journey that started so well. This is in regard to the equity contribution of Abia State for an equity stake of 5% in the project.
“You may recall that the amount for this 5% was agreed for a price of $5 million, Abia State Government insisted that it would obtain this stake in Naira at the rate of N395 to $1 which was CBN rate at the time,” the read in part.
“Out of the N1, 975,000,000 required, the Abia State Government paid the sum of N 141 billion remaining N565 million,” it added.
The letter said the state government’s non-completion of the equity was preventing the company from wrapping up a deal with the Bureau of Public Enterprises (BPE).
The BPE is the primary agency responsible for privatising public enterprises and carrying out sector reforms with a focus on driving economic growth and efficiency in Nigeria.
“We, therefore plead that Abia State Government please immediately pay this money to avoid destroying monumental achievement here in Abia State of which your Excellency has been very gracious in promoting,” the company pleaded.
‘No evidence’
But reacting, Mr Otti, the current governor of the state, said there was no evidence that the Abia State Government invested in the Geometric Power Plant.
The governor spoke on Thursday when he appeared as a guest on Channels TV’s Politics Today.
“To the best of our knowledge, we don’t have any evidence that the Abia State Government does have equity (in the Geometric Power Plant),” he said.
He, however, said he had been informed by some officials of the power plant that although there was a five per cent equity stake offer to the Abia State Government, the government did not complete the payment.
“So, I have set up a team to engage with the Geometric Power Plant so that we can dig into the facts,” Mr Otti stated.
The governor said he would be glad if confirmed that the state government indeed has the equity.
Company speaks
When contacted on Friday evening, the spokesperson of the Geometrics Power Plant, C Don Adinuba, told PREMIUM TIMES that although the agreement was a five per cent equity stake, the Abia State Government was only able to pay for a 3.5 per cent equity stake.
Mr Adinuba said if the state government pays an outstanding balance of N565m, they would have the complete 5 per cent equity stake in the company.
“So, because they have not paid yet, what they (Abia State Government) have is 3.5 per cent (equity stake),” he said.
Also, a former Commissioner for Information under Mr Ikpeazu’s administration, John Kalu, in a statement on Friday, said that Mr Otti, through his spokesperson, Mr Uko, has acknowledged receiving a letter from Mr Nnaji, informing them that Mr Ikpeazu’s administration indeed paid at least $3.56 million to purchase stakes in the company.
Mr Kalu, who also served as commissioner for trade and investment under the former administration, said he personally sighted the letter where Mr Nnaji confirmed that the former administration bought 3.5% equity in the power company.
“For the avoidance of doubt, the transaction was recorded in the handover note given to Governor Alex Otti on the 29th of May 2023.
READ ALSO: Abia govt refutes claims of owing soldiers attached to security task force
“Furthermore, the same transaction was published in our 2022 budget performance statement handed over to the Otti administration with details of budgetary approval,” he said.
The former commissioner corroborated Mr Adinuba’s position that although five per cent was the initial agreement, the past administration only paid for 3.5 per cent “because of paucity of funds or competing needs,” adding that Mr Otti should “accept the 3.5% equity already confirmed by Prof Nnaji.”
He claimed that Mr Otti, before featuring on the Channels TV programme, was already in receipt of the letter from Mr Nnaji confirming the 3.5% equity invested by Mr Ikpeazu’s administration, but chose to hide it because he wanted to “demonise the Ikpeazu administration.”
Geometric Power plant
The 188-megawatt power plant located in Aba, Abia State was commissioned by Vice-President, Kashim Shettima, on 26 February.
The commissioning happened after over 20 years following intense legal battles between the owner of the power plant, Mr Nnaji and others, including management of the Enugu State Electricity Distribution Company.
Regarded as Nigeria’s first integrated electrical facility in Nigeria’s South-east, the power plant is expected to accelerate power supply to industrial clusters in the region, beginning in Aba.
The project is said to be worth over $800 million.
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For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
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The management of the Geometric Power Plant has confirmed the percentage of equity stake purchased by the Abia State Government in the company’s power plant in Aba.
Controversy
There was speculation that the Abia State Government contributed a five per cent equity stake in the power plant during the administration of Okezie Ikpeazu who served as the governor of the state from 2015 to 2023.
Data from the Abia State Accountant General’s 2022 financial report indicated that the state government invested N1.41 billion for the 5 per cent equity in the Geometric Power Plant.
Again, a letter from the management of the Geometric Power Plant, which surfaced online recently, shows that Mr Ikpeazu’s administration contributed a five per cent equity stake in the company.
In the letter dated 24 August 2022 and addressed to Governor Ikpeazu, the management of the power plant had asked the Abia State Government to pay them N565 million as the balance of its equity stake in the company.
The letter, seen by PREMIUM TIMES, was signed by the owner of the power plant, Barth Nnaji, a professor and former minister of power in Nigeria.
“We like to please request that you complete the journey that started so well. This is in regard to the equity contribution of Abia State for an equity stake of 5% in the project.
“You may recall that the amount for this 5% was agreed for a price of $5 million, Abia State Government insisted that it would obtain this stake in Naira at the rate of N395 to $1 which was CBN rate at the time,” the read in part.
“Out of the N1, 975,000,000 required, the Abia State Government paid the sum of N 141 billion remaining N565 million,” it added.
The letter said the state government’s non-completion of the equity was preventing the company from wrapping up a deal with the Bureau of Public Enterprises (BPE).
The BPE is the primary agency responsible for privatising public enterprises and carrying out sector reforms with a focus on driving economic growth and efficiency in Nigeria.
“We, therefore plead that Abia State Government please immediately pay this money to avoid destroying monumental achievement here in Abia State of which your Excellency has been very gracious in promoting,” the company pleaded.
‘No evidence’
But reacting, Mr Otti, the current governor of the state, said there was no evidence that the Abia State Government invested in the Geometric Power Plant.
The governor spoke on Thursday when he appeared as a guest on Channels TV’s Politics Today.
“To the best of our knowledge, we don’t have any evidence that the Abia State Government does have equity (in the Geometric Power Plant),” he said.
He, however, said he had been informed by some officials of the power plant that although there was a five per cent equity stake offer to the Abia State Government, the government did not complete the payment.
“So, I have set up a team to engage with the Geometric Power Plant so that we can dig into the facts,” Mr Otti stated.
The governor said he would be glad if confirmed that the state government indeed has the equity.
Company speaks
When contacted on Friday evening, the spokesperson of the Geometrics Power Plant, C Don Adinuba, told PREMIUM TIMES that although the agreement was a five per cent equity stake, the Abia State Government was only able to pay for a 3.5 per cent equity stake.
Mr Adinuba said if the state government pays an outstanding balance of N565m, they would have the complete 5 per cent equity stake in the company.
“So, because they have not paid yet, what they (Abia State Government) have is 3.5 per cent (equity stake),” he said.
Also, a former Commissioner for Information under Mr Ikpeazu’s administration, John Kalu, in a statement on Friday, said that Mr Otti, through his spokesperson, Mr Uko, has acknowledged receiving a letter from Mr Nnaji, informing them that Mr Ikpeazu’s administration indeed paid at least $3.56 million to purchase stakes in the company.
Mr Kalu, who also served as commissioner for trade and investment under the former administration, said he personally sighted the letter where Mr Nnaji confirmed that the former administration bought 3.5% equity in the power company.
“For the avoidance of doubt, the transaction was recorded in the handover note given to Governor Alex Otti on the 29th of May 2023.
READ ALSO: Abia govt refutes claims of owing soldiers attached to security task force
“Furthermore, the same transaction was published in our 2022 budget performance statement handed over to the Otti administration with details of budgetary approval,” he said.
The former commissioner corroborated Mr Adinuba’s position that although five per cent was the initial agreement, the past administration only paid for 3.5 per cent “because of paucity of funds or competing needs,” adding that Mr Otti should “accept the 3.5% equity already confirmed by Prof Nnaji.”
He claimed that Mr Otti, before featuring on the Channels TV programme, was already in receipt of the letter from Mr Nnaji confirming the 3.5% equity invested by Mr Ikpeazu’s administration, but chose to hide it because he wanted to “demonise the Ikpeazu administration.”
Geometric Power plant
The 188-megawatt power plant located in Aba, Abia State was commissioned by Vice-President, Kashim Shettima, on 26 February.
The commissioning happened after over 20 years following intense legal battles between the owner of the power plant, Mr Nnaji and others, including management of the Enugu State Electricity Distribution Company.
Regarded as Nigeria’s first integrated electrical facility in Nigeria’s South-east, the power plant is expected to accelerate power supply to industrial clusters in the region, beginning in Aba.
The project is said to be worth over $800 million.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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