THE RIGHT SPARK
Being the Text of a Speech Presented by Governor Alex C. Otti, OFR, at the Validation and Formalisation of the Abia State Mini-Grid Regulation on Wednesday, September 10, 2025 at the Banquet Hall, Government House, Umuahia
Protocols
- Electricity is the spark that ignites the fire of progress in human communities. It drives innovation, supports the productivity of the population and improves the daily experiences of individuals when it is accessible. In the modern era, industries, households and social services, including transportation, education and health, are dependent on electricity and in its absence, everything else falls apart. It therefore follows that electricity is a necessity for individuals, businesses and the body of systems that function within the larger human environment.
- Governments exist to improve the daily experiences of the human population through policy choices, expenditure patterns and a system of progressive reforms. In keeping with the demands of these sacred responsibilities and in appreciation of the frustrations arising from limited or total absence of electricity supplies in our communities, we have gathered this afternoon to collectively adopt a new framework that would not only expand our options in the push for reliable electricity for everyone, but would ultimately serve as a catalyst for the industrialisation of Abia and economic fulfilment for millions of individuals.
- The formal adoption of the Abia State Mini-Grid regulation framework marks the dawn of a new era for households and businesses. Today’s event is the climax of several months of planning, stakeholder engagements, confidence building, ideation and reviews by policy experts, investors and energy consumers. I would like to express the collective gratitude of the Government and people of Abia State to the International Solar Alliance (ISA) for their support and commitment to the successful delivery of this project. May I announce to our overseas partners and friends that this initiative is closely aligned to our common pursuit of a carbon-neutral future. ISA, as I have learnt, has proven to be a worthy and reliable partner. We look to further deepen our collaboration with the body, especially as we continue to expand our renewable energy options. The strategic intent is to make the most of the abundant supply of sunlight in our communities to improve electricity generation and supply.
- The electricity market in the State has witnessed tremendous changes in the last 19 months following the signing into law of the 2024 Electricity Bill by President Bola Tinubu, GCFR. The new law introduced key reforms in the electricity sector starting with the decentralisation of the market. It strategically created a legal framework for sub-nationals, and other economic actors to generate, transmit and distribute electricity within and beyond the physical boundaries of their territories. We have since taken advantage of the new electricity regime to establish and inaugurate the management and board of the Abia State Electricity Regulatory Authority, ASERA. The formalisation and adoption of the Abia State Mini-Grid regulatory architecture is also hinged on the new legal framework which empowers states, private investors and institutions to invest in the electricity value chains with the objective of extending access to millions of persons especially in underserved and un-served communities.
- As a State, we appreciate that improved electricity supply is at the heart of our economic and social transformation agenda. We are therefore moving as fast as we can to make the most of the new streams of opportunities that have arisen in the energy ecosystem to welcome competent investors to drive our target for the sector. The Abia State Electricity Bill, which we signed into law earlier in the year provides clear guideline for market entry, value creation and resource optimisation.
- Having followed the conversations and debates leading to this point, I can say without equivocation that the Abia State mini-grid regulatory framework provides unambiguous answers to technical and commercial questions from investors and consumers alike, defines the rights and obligations of stakeholders and offers pathways to speedy resolution of disputes. With inputs from community leaders, operators in the renewable and conventional energy spaces, local and international policymakers, there is no doubt that what we have done over the last few months since we began working on this project would stand the test of wider public scrutiny and of course, time.
- It is, however, important to add that we shall continue to pay close attention to new dynamics in the ecosystem. Our focus is to guarantee the consistency of fair outcomes for every stakeholder group. Whenever the need arises, reasonable changes shall be made in relevant sections of the framework in line with evolving commercial or technological realities. My outlook to regulations and conventions is that nothing is cast in stone so whenever a compelling case for change is made, one should not be afraid to embrace same. Laws and regulations can only be relevant through constant adaptation and evolution to the needs of the human community. In the light of our commitment to the rapid socioeconomic transformation of the State, we shall continue to evolve regulatory models and structures that mirror our broad and specific aspirations in the energy sector. The commitment at all times will be to protect the interests of the investors and consumers alike, guarantee industry stability and adopt multiple layers of initiatives to keep the system open and competitive.
- The overarching objective of the Mini-Grid Regulatory Framework is to promote the use and adoption of alternative energy options for domestic and commercial activities. This is tied closely to our administration’s commitment to experimenting with ‘outside-the-box’ solutions to seemingly intractable problems like the perennial challenge of inadequate electricity supply. New technologies and innovations have offered us the means to harness natural resources like sunlight and wind to provide clean energy solutions and we are prepared to exploit this advantage to the fullest through direct investments and partnerships. The regulations would guarantee that the principles of fair competition through ethical innovation and equitable pricing prevail. We have also made provisions for programmes that support manpower development through training and employment opportunities for our youth population, community development through corporate social responsibility and reward for responsible business practices through incentives like tax concessions and rebates.
- The Abia State Government, you would agree with me, is prepared to provide every necessary support to courageous investors and partners willing to commit their resources to the energy ecosystem in Abia. May I once again assure members of the international community that we are in sync with the global demands for higher volumes of investments in the renewable energy space even as we push for more support especially in the areas of donor funding and technical assistance. We may be slow, but I must acknowledge the consensus amongst policy makers and experts that the future of energy is renewables.
- This event presents a golden opportunity to announce to communities that are either poorly served or had never been connected to the electricity grid before now that a new dawn of energy efficiency and sufficiency will soon emerge and nothing shall remain the same afterwards. Cost of doing business would crash leading to improved factor utilisation, reduced downtime and of course, reasonable profit margins for entrepreneurs. The introduction of mini-grid solutions and the accompanying regulations would lift millions of persons out of poverty through job creation, especially in the agricultural value chain. It would also cut down the rate of rural-urban migration and make our communities liveable, especially for those who prefer the quiet and less-aggressive life in the suburban centres. The new system therefore offers a win-win solution for investors and consumers without threatening the natural ecosystem.
- Let me, as I begin to round up, address the fears expressed silently and in quiet corners by the dominant players and investors in the conventional electricity ecosystem. May I advise that the mini-grid solution should not be misconstrued as a threat to your business interests. The market is big enough and can accommodate anyone who has the capacity to provide value. Ultimately, the mini-grids would be set up to offer short to medium term energy solution for consumers especially in the rural communities where grid electricity is either disconnected or totally absent. When eventually, conventional electricity infrastructure is deployed or restored, the system of interconnectivity would kick in to expand consumer options while creating a pathway for cost sharing and efficiency for both investors and consumers.
- I would like to specially appreciate the Honourable Commissioner for Power and Public Utilities, Engr. Ikechukwu Monday, and the entire team for partnering with relevant stakeholders to get this exercise concluded in good time. I am convinced that you shall not be resting on your oars especially as the task ahead is still demanding. You have only concluded one layer of the assignment. The next line of responsibilities would revolve around continuous engagements, networking and ultimately, attracting investors who will take advantage of our strong institutional and regulatory provisions to place their bets on us. You would also be required to provide directions on the interface between ASERA and multiple stakeholder groups, helping to create effective system of relationships without compromising institutional independence and accountability.
- To our body of partners, local and domestic, I want to thank you for your support and goodwill to the State. May I reassure you that we shall leave no stone unturned in the push to make Abia a truly model State in the new electricity regime. Our target is to put all the relevant structures and systems in place to effectively double our energy output, improve access for 100% of the population and ignite the spark that would effectively make Abia the number one destination for individuals, families and businesses seeking to operate in an environment where the barriers to productivity are minimal.
- Thank you for listening and may God bless Abia State.
Dr Alex C. Otti, OFR,
September 10, 2025
