By Obas Esiedesa, Abuja

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

In a statement on Tuesday, Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Chief Adebayo Adelabu, announced that the approvals were ratified at a recent Federal Executive Council (FEC) meeting.

The projects include the revival and concessioning of the decades-old Ikere Gorge Hydropower Plant and the construction of a high-capacity substation in Ibadan—moves that signal a push to modernize Nigeria’s electricity infrastructure and expand access to power.

The new substation will be located in the Lalupon/Ejioku axis of Lagelu Local Government Area and is expected to significantly boost electricity supply to Iwo Road, Monatan, Olodo, and surrounding areas in Ibadan.

The Ikere Gorge Hydropower Plant, originally initiated in 1979 under the military regime of former President Olusegun Obasanjo and operationalized in 1980 during President Shehu Shagari’s administration, is set for a major upgrade. Minister of Power, Adebayo Adelabu, revealed that its capacity would increase from 6MW to 20MW under a 30-year public-private partnership (PPP) concession.

The project, previously stalled after the preferred bidder failed to meet concession terms, has now been re-awarded to the reserve bidder, Messrs Quaint Power and Infrastructure Nigeria Limited. Adelabu noted that the revamped plant would focus on improving electricity access for Oke Ogun communities in Oyo State, with an enhanced concession fee to ensure the project’s sustainability.

In addition, the FEC approved the construction of a 2 x 60MVA, 132/33KV substation in Lalupon/Ejioku, also in Lagelu LGA. This initiative is part of the Siemens-backed Presidential Power Initiative (PPI) and will be fully funded by the Federal Ministry of Power. It aims to ease grid pressure and reduce the frequent outages plaguing Ibadan and its environs.

Adelabu emphasized that the infrastructure would serve as a foundation for strategic investment, improve service delivery, and align with President Bola Tinubu’s Renewed Hope Agenda for sustainable energy. The substation project also includes upgrades to the 60-year-old 330KV Ayede substation and the construction of a new 330KV substation in Asejire, further stabilizing electricity supply for over five million residents. Completion is expected within 24 months.

Both initiatives are projected to catalyze socio-economic development by enhancing power reliability for households, small businesses, industries, educational institutions, and healthcare facilities.

“These interventions will directly uplift livelihoods, attract industries, and position Oyo State as a model for Nigeria’s energy transition,” Adelabu stated.

The approvals mark a significant milestone in federal efforts to strengthen power infrastructure, with stakeholders hopeful about their potential to boost national productivity.