It has been revealed that the Abia State government provided an equity investment of N1.42 billion (equivalent to $3.56 million at that time) in the newly opened Aba integrated power project (IPP) owned by the Geometric Power Group.
The sum was a partial payment towards a $5 million (equivalent to N1.975 billion) ownership share proposed to Abia State, resulting in an outstanding balance of N565 million or $1.44 million (calculated based on the current exchange rate at the time of the transaction).
Over the weekend, it was confirmed that the Chairman/CEO of Geometric, Prof. Barth Nnaji, sent a letter to Governor Alex Otti to substantiate the transaction in relation to the previous administration’s assertions, following the governor’s inquiry.
Additional proof that Abia possesses an ownership interest was found in a letter dated August 24, 2022, that Nnaji addressed to the former Governor of the State, Okezie Ikpeazu. The letter acknowledged the partial payment made towards Abia’s five percent ownership stake and requested the completion of the agreement.
He had written: “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 equity stake of five per cent in the project.
“You may recall that the amount for this five per cent was agreed for a price of $5 million. Abia State Government insisted that it will obtain this stake in naira at the rate of N395 to $1 which was CBN rate at the time.
“Out of the N1,975,000,000 required. ABSG paid the sum of N1.41 billion remaining N565 million.”
The legitimacy of Abia’s ownership stake in the Aba IPP became a topic of debate leading up to the inauguration event, as the previous administration disclosed that it had acquired shares worth N1.56 billion for the state.
