In a decisive move to strengthen Nigeria’s electricity infrastructure, the Federal Executive Council (FEC) has approved the concession of the 6-megawatt Ikere Gorge Hydropower Plant and sanctioned the construction of a new power substation in Ibadan, Oyo State.
The Minister of Power,s Mr. Adebayo Adelabu, announced the development while briefing journalists after the FEC meeting held on Monday. He revealed that the decision aims to ensure steady power supply and modernize critical power infrastructure under the Renewed Hope Agenda.
According to Adelabu, the Ikere Gorge Hydropower Plant, initially concessioned in 2019 under a public-private partnership arrangement, suffered delays after the first concessionaire failed to execute the agreement. A new concessionaire has now been appointed to upgrade the plant’s capacity from 6 megawatts to between 15 and 20 megawatts.
As part of the new agreement, the concessionaire will pay a one-time concessional fee of N291.6 million and an annual concession fee of N66.3 million to the federal government.
“This initiative is designed to enhance electricity access in the Okiogun area of Oyo State,” Adelabu stated. “With improved power supply, we anticipate significant growth in the agricultural sector and a boost for local industries in Okiogun.”
In a related development, FEC also approved the construction and installation of a 260MVA, 132/33KV power substation in Ibadan, at a cost of $18.3 million and N9.9 billion. The project is expected to ease pressure on Ibadan’s aging power infrastructure, which has long suffered from frequent outages and unstable power delivery.
“The new substation will benefit critical areas such as Uwo Road, Monatan, and Yanofa, providing reliable electricity supply to support both residential and commercial needs,” the Minister explained.
Additionally, the Power Ministry secured FEC approval for the procurement of three operational vehicles for the Power Company of Nigeria, the special purpose vehicle responsible for driving the Siemens-backed Presidential Power Initiative (PPI). Adelabu noted that the vehicles would support monitoring, implementation, and supervisory activities across various power sector reform projects.
Nigeria’s Energy Sector Reform and Power Projects in Oyo State
These approvals underscore the government’s commitment to transforming the power sector and enhancing grid stability nationwide. The initiatives are part of President Bola Tinubu’s Renewed Hope Agenda, aimed at modernizing Nigeria’s energy infrastructure to meet growing demands and stimulate socio-economic growth.
