Power Struggle: Aba’s Factories Light Up But Can’t Afford the Bills
Despite Geometric Power’s grid, 88% of Ariaria manufacturers battle soaring tariffs—will Governor Otti flip the switch?
Aba, April 1st, 2025 — A groundbreaking field report on Ariaria Market’s manufacturers reveals a stark paradox: while the Geometric Power Plant has stabilized electricity supply, 88% of small-scale factories now face crippling tariff hikes, with monthly bills soaring by 35–50%. We advice that without some kind of state intervention, Aba’s famed “Japan of Africa” industrial ecosystem risks collapse. It’s heart warming that Governor Alex Otti is mounting pressure to streamline energy costs and modernize Ariaria’s aging distribution networks. “We have power, but it’s pricing us out of business,” lamented a shoemaker, echoing frustrations from 26 surveyed workshops. The report underscores a broader crisis: imported material costs, predatory loans, and a fleeing workforce threaten to dim Aba’s entrepreneurial spark.
Focus: Ariaria International Market
Date of Field Study: March 13–15, 2025
Aba, the commercial nucleus of southeastern Nigeria, sustains its reputation as a hub for informal manufacturing, epitomized by the sprawling Ariaria International Market. Home to over 37,000 micro-to-small-scale enterprises (MSEs), the market specializes in footwear, garments, and leather goods. Despite recent improvements in electricity supply via the Geometric Power Plant, manufacturers continue to grapple with systemic challenges. This report synthesizes findings from a three-day field study conducted by a team of *Aba based final-year undergraduate researchers: Miss Ngozi Okoro (400-level, University of Nigeria, Nsukka), Mr. Innocent Chukwuma (400-level, Enugu State University of Science and Technology), and Miss Faith Agu (400-level Economics, Yakubu Gowon University, Nigeria). The team interviewed 26 manufacturers across Ariaria Market, employing semi-structured questionnaires, observational analyses, and comparative pricing surveys to evaluate operational costs, energy use, and market dynamics.
The study revealed persistent energy-related challenges despite Geometric Power’s improved generation capacity. Eighty-eight percent of manufacturers cited unaffordable electricity tariffs, with 70% reporting a 35–50% increase in monthly bills post-integration with the new grid. Intermittent supply remained an issue, as 65% experienced 4–6 daily power interruptions due to outdated distribution infrastructure within Ariaria Market. Transition costs further strained MSEs, with 82% unable to afford the ₦120,000–₦450,000 required to retrofit workshops to comply with Geometric Power’s grid standards. Concurrently, 75% of manufacturers faced a 30–40% surge in adhesive and synthetic leather prices between March 2024 and March 2025, driven by naira volatility (₦1,450/$). This import dependency weakened their competitiveness against Chinese goods, which retail 20–30% cheaper. Financing barriers exacerbated these issues, as 85% relied on informal lenders charging 22–35% monthly interest, while workforce attrition saw 60% lose skilled artisans to urban gig economy jobs.
These challenges underscore a paradox: reliable energy supply exists, but distribution inefficiencies, high tariffs, and import reliance negate its benefits. Miss Ngozi Okoro noted that Aba’s manufacturers exemplify resilience but remain hamstrung by structural gaps. For instance, while Chinese cottage industries benefit from state-subsidized utilities and domestic supply chains, Aba’s MSEs lack comparable support. Mr. Innocent Chukwuma emphasized that productivity is stifled by obsolete tools, with leather workshops taking three days to produce goods automated Chinese factories complete in two hours. Miss Faith Agu added that Geometric Power’s infrastructure, though transformative, requires complementary policies to ensure affordability and equitable access.
To address these issues, Gov Otti has been aiming targeted interventions at these operators. First, he insists that prioritizing energy affordability over mere availability is critical. He had long concluded that partnering with entities like Enugu Electricity Distribution Company, and Geometric Power to streamline tariffs for MSEs and invite private sector interests allocate resources while the government tools with policy frameworks to boost upgrade of Ariaria’s internal distribution infrastructure would mitigate cost pressures. Second, Otti is in high spirits as regards a consortium of private interests to energise the sector by catalyzing local raw material production through initiatives like the Aba Raw Material Development Fund (₦2 billion seed capital), while the government tools with tax holidays for ancillary factories, which the governor believes will reduce import reliance. Third, as a banker, he’s currently formalizing access to low-cost financing via partnerships with global venture capital firms, and fintech platforms like Opay that will alleviate dependence on loan sharks. Fourth, Dr Alex Chioma Otti OFR, yesterday hinted that tackling brain drain through expanded vocational training programs, such as the Aba Youth Artisan Program, and conditioned-stipends for apprentices could retain skilled workers. Finally, he has tasked his aides to streamline regulatory coordination via a Single Revenue Portal and anti-harassment task forces would reduce the burden of multiple taxation.
Governor Otti’s administration holds a unique opportunity to transform Aba into a globally competitive industrial hub. Hes confident that strategic interventions must prioritize equitable growth, aligning with the “New Abia” industrialization agenda. As Miss Agu concluded, “Aba’s informal sector isn’t asking for aid—it needs ecosystems that convert ingenuity into sustainable growth.” By addressing energy costs, import dependency, and informal financing, the state can unlock the latent potential of its cottage industries while curbing youth unemployment. The resilience of Ariaria’s manufacturers is undeniable, but their survival hinges on systemic reforms that bridge the gap between policy ambition and grassroots reality.
Dr Chukwuemeka Ifegwu Eke writes from Yakubu Gowon University Nigeria
References
- Field interviews with Ariaria manufacturers, March 13–15, 2025.
- Geometric Power Ltd. (2025). Aba Electricity Distribution Report.
- National Bureau of Statistics (2025). Nigeria’s Consumer Price Index.
