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Abia State enacts electricity law to boost power regulation, supply

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Abia State enacts electricity law to boost power regulation, supply

by Ansah Makimi
March 18, 2025
in METRO REPORT, Policy, Top Stories, Trending
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Governor Alex Otti has signed the Abia State Electricity Bill into law, a landmark move aimed at improving electricity regulation and supply within the state. The new law establishes the Abia State Electricity Regulatory Authority (ASERA), which will oversee the generation, transmission, and distribution of electricity within Abia, reducing dependence on the national grid and fostering energy independence.

The signing of the bill comes as part of Governor Otti’s broader vision to provide reliable and affordable electricity to households, businesses, and industries across the state. With chronic power shortages affecting economic growth, the new law seeks to attract investment in the energy sector while ensuring fair pricing and efficient service delivery.

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Speaking at the signing ceremony, Governor Otti emphasized the significance of the law in addressing the state’s power challenges: “The passage of this law marks a turning point in our efforts to provide uninterrupted electricity to the people of Abia. With the establishment of ASERA, we now have the legal framework to regulate, improve, and expand power supply, ensuring that our businesses and residents no longer suffer from erratic electricity.”

The law introduces several transformative measures, including:

  • Creation of ASERA: The regulatory body will set electricity tariffs, enforce compliance among power operators, and oversee the licensing of independent power producers.
  • Encouragement of Private Investment: The law provides a legal framework for independent power producers (IPPs) to establish and operate within the state, reducing the reliance on the federal power supply.
  • Rural Electrification Plans: A significant focus will be placed on extending electricity to underserved and rural communities through mini-grid and off-grid solutions.
  • Consumer Protection Measures: The law mandates the fair treatment of electricity consumers, ensuring transparency in billing and protection from exploitative charges.
Economic and Industrial Implications

With reliable electricity being a critical driver of industrialization, stakeholders in Abia’s business sector have welcomed the new law, expressing optimism about its potential to improve productivity and attract new investments.

Energy expert and industry consultant, Dr. Chinedu Okafor, described the move as a “bold step toward sustainable energy security” for the state. He further noted:

“States taking control of their electricity supply is the future of Nigeria’s energy sector. Abia’s new law sets the stage for job creation, industrial growth, and improved living standards for residents.”

Challenges and Implementation Roadmap

Despite the optimism, experts warn that effective implementation will require strategic planning, financial commitment, and strong regulatory oversight. The government has assured that necessary steps, including partnerships with private investors and energy stakeholders, will be taken to ensure smooth execution of the law.

ASERA is expected to begin operations in the coming months, setting the stage for licensing power providers and implementing new electricity supply frameworks across Abia State.

What Comes Next?

The enactment of the Abia State Electricity Law aligns with Nigeria’s broader electricity sector reforms, allowing subnational governments to take greater control of their power supply. If successfully implemented, Abia could serve as a model for other states looking to enhance their electricity infrastructure.

TheLink News NG will continue to track developments on the implementation of the new electricity law and its impact on businesses and residents in Abia State.

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