Geometric Power: Recover The $3.5m Invested By Ikpeazu Administration

-John Okiyi Kalu

“I write to appreciate you (Governor Okezie Ikpeazu) for the support you have rendered to Geometric Power in ensuring that the Aba IPP project is completed.

“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 5% in the project. You may recall that the amount for this 5% 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.”

• Prof. Barth Nnaji, CON, NNOM
  Chairman/CEO of Geometric Power wrote on 24th August 2022
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“Well, State Government was expected to commit that amount ($5m) but it didn’t deliver on the amount. So, and of course, it is really not dollars, there is no dollars. Nobody has given us any dollars. And it is a good thing for a state Government to want to take, let’s say 5% equity position in a company of this nature. It is actually within the State Government but really the PPP that i was talking about is more about how a Government acts to ensure there is investment in the place. I lived in the US for 27 years and I can tell you that states and LGAs go out of their way to provide incentives for companies to come to invest there. Not because they get something like equity but because the companies provide employment and they pay tax to the state or local government. ”

–Prof. Barth Nnaji, CON, NNOM
Chairman/CEO of Geometric Power said on 23rd February 2024
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Based on documents and information available to me, the then Abia State Government led by Dr Okezie Ikpeazu actually paid at least N1.41bn to Geometric Power, as at August 24th 2022, in part to acquire 5% equity stake on behalf of the people of the state.

Going by the applicable exchange rate of N395 to $1 that payment amounted to $3,569,620.02 or 71% of the allotted 5% shares in Geometric Power as at that time.

This payment is beside other material and non-material contributions of the Ikpeazu-led administration to ensure that the project took off, including committing state resources to introduce and promote the company before international investors such as AFREXIM Bank that later availed the sum of Fifty Million Dollars ($50m) to Geometric Power and extension of massive goodwill and political leverage to ensure that the debilitating rift between the company and EEDC was settled through the office of then Vice President Yemi Osinbajo.

It is absolutely strange to me that Prof Nnaji in his recorded statement on 23rd February 2024 denied receiving any dollars whereas in his earlier written communication to Abia State Government he voluntarily acknowledged receiving N1.41bn as equivalent of $3.569m while asking for a balance of
$1,430,379.75 or N565m.

The recent recorded denial by Prof Barth Nnaji raises fundamental issues that must be urgently attended to by the state and federal governments in order to protect Abia tax payers’ money through either safeguarding the equivalent stakes paid up by the government ($3.569m) or verifiable refund of the amount in dollars, with applicable interests, to the account of the state government.

Assuming the current government in Abia State that has already been made aware of this payment does not need the money they can distribute $100 or its current naira equivalent to all the vulnerable persons in Abia to cushion the effect of the harsh economic conditions on families. Indeed, the government may also wish to apply same as electricity subsidy to residents if and when Geometric Power starts delivering steady power supply in Aba.

Current Abia State Government can also pay the balance of $1.4m to achieve the 5% equity stake if indeed they still believe the company is viable in the short and long run. But, if in their own estimation, they think it is not viable then they should recover the money in dollars, use it to buy and distribute free transformers across the state.

Indeed, I am astounded that even with the information already made public, some Abia State Government officials went on record to say our state did not invest in Geometric Power whereas there is evidence to the contrary.

Is this not a low hanging fruit for the recovery panel in Abia to delve into instead of pursuing politically motivated persecution of individuals whose major crime must be working with Dr Okezie Ikpeazu?

I wish to call on civil society organizations in Abia State to rise up and take up the gauntlet to recover the $3.569m belonging to Abians that is trapped in Geometric Power bank account. It is at times like this that we know who is really an activist as against a political ‘cashivist’ since the state government seems to have indicated a lack of interest in the matter.

As for me, my job is now done via shining the light and I am happy to return to my quiet mode on Abia issues till further notice.

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