Last year, Nigerian social media, especially the south-east space, was agog with celebration following the completion of the $800 million Geometric power plant in Aba.
The word on the street was that Aba achieved Uhuru with the project and has joined the prestigious league of cities with 24-hour electricity. The project was celebrated as evidence of what Nigeria can become if its leaders prioritize capital projects and actually care about improving the lives of its citizens.
Behind the euphoria and short celebrations, some financial institutions that played a key role in bringing the project to light were overlooked. These finance giants that bankrolled the project did not exactly get enough shout-outs and were overshadowed by politicians who claimed the glory for themselves. One of such banks was the African Export-Import Bank (Afreximbank).
First Seed
The Afrexim Bank was among the first banks to financially commit to the Geometric Power Project in Abia State. In 2021, Afreximbank provided a US$50 million term loan to Geometric Power Limited to support the completion of generation and distribution infrastructure, including a 27km gas pipeline. The Continental Bank, which has extended its services to the Caribbean, helped the project commence operations and was pivotal in the 141 MW Aba Integrated Power Project.
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Furthermore, Afreximbank advised on restructuring and arranged US$332 million in recapitalization funds for the project. This financial support was critical in overcoming delays caused by funding shortages and bureaucratic challenges since the project’s inception in 2004.
The Geometric Power Plant is one of the many success stories stemming from Afrexim’s $900 million investment in Nigeria’s power sector. The Aba IPP, as a result of such investment, became Nigeria’s first integrated power project supplying electricity to nine local government areas in Abia State. The project was commissioned in February 2024 by Vice President Kashim Shettima, with a capacity expandable to 188 MW
Aba’s Road to Excellence
Aba, a commercial city in Abia State, is already famous for its industrial rigour and manufacturing antics. The Made in ABA brand, which was already a household name in the early 90s, testifies to the potential in the city known for churning out all kinds of homemade Nigerian products. The addition of an established power structure aims to boost the already booming commercial and industrial activity in the city.
Abia State as a whole, under the administration of Governor Alex Otti, is receiving a facelift with various capital projects, road infrastructure, and heavy investment in other important sectors. The promise of 24-hour electricity supply in any part of Nigeria used to be a pipe dream. Projects like the Geometric Power Plant make such dreams a near reality.
As the Afrexim Bank holds its annual meeting today in Abuja, it is important to mention the role the bank played in the Abia power project. The project remains one of the standing legacies of the Afrexim Bank under Prof Benedict Oramah and a beacon of hope for a Nigeria that could be.
