FG Concessions Hydro Power Plant In Oyo, Approves Grid Upgrade With New Substations

The Federal Government has approved two major energy projects in Oyo State aimed at fortifying the national grid and addressing persistent power challenges.

The decisions, ratified during Monday’s Federal Executive Council (FEC) meeting, include reviving and concessioning the decades-old Ikere Gorge Hydropower Plant and constructing a high-capacity new substation in Ibadan, signaling a push to modernize infrastructure and boost electricity access.

The decisions, ratified during Monday’s Federal Executive Council (FEC) meeting, include reviving and concessioning the decades-old Ikere Gorge Hydropower Plant and constructing a high-capacity new substation in Ibadan, signaling a push to modernize infrastructure and boost electricity access.

The new substation to be located in Lalupon/Ejioku axis of Lagelu local government area will boost power supply to Iwo road, Monatan, Olodo and the adjoining areas in Ibadan.

Originally launched in 1979 under the military regime of former President Olusegun Obasanjo and operationalized in 1980 during President Shehu Shagari’s tenure, the Ikere Gorge Hydropower Plant will now undergo a significant upgrade. Power Minister Adebayo Adelabu revealed that the facility’s capacity will expand from 6MW to 20MW under a 30-year public-private partnership (PPP) concession.

The project, initially stalled due to a preferred bidder’s failure to finalize terms, was re-concessioned to a reserve contractor, Messrs Quaint Power and Infrastructure Nigeria limited, after the original offer lapsed. Adelabu emphasized that the revitalized plant will prioritize energy access for Oyo’s Oke Ogun communities, with an upwardly revised concession fee ensuring long-term viability.

Meanwhile, the government also approved the construction of a 2 x 60MVA, 132/33KV substation in Lalupon/Ejioku in Lagelu local government area of the State, to alleviate pressure on the grid and improve energy supply. The substation is to be funded directly by the Federal Ministry of Power and aims to resolve frequent outages and grid instability plaguing the state capital.

Adelabu noted that the infrastructure will serve as a backbone for strategic investments, enhance service delivery, and align with President Tinubu’s Renewed Hope Agenda for sustainable energy. The project includes upgrades to the 60-year-old 330KV Ayede substation and the construction of a new Asejire 330KV substation, further stabilizing the grid for over 5 million residents. Completion is estimated at 24 months and is part of the Siemens-backed Presidential Power Initiative (PPI),

Both initiatives are expected to catalyze socio-economic growth by improving power reliability for households, small businesses, industry, educational and health institutions.

Adelabu underscored their role in resolving decades-old infrastructure gaps, stating, “These interventions will directly uplift livelihoods, attract industries, and position Oyo State as a model for Nigeria’s energy transition.” The approvals mark a critical milestone in federal efforts to tackle grid vulnerabilities, with stakeholders anticipating ripple effects on national productivity.

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