FG Concessions Ikere Gorge Plant, Approves Grid Upgrade In Oyo
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, signalling a push to modernise infrastructure and boost electricity access.
The new substation to be located in the Lalupon/Ejioku axis of the 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 operationalised in 1980 during President Shehu Shagari’s tenure, the Ikere Gorge Hydropower Plant will now undergo a significant upgrade.
A statement issued in Abuja on Wednesday by Bolaj Tunji, the Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Adebayo Adelabu, quoted him as having revealed that the facility’s capacity will expand from 6MW to 20MW under a 30-year public-private partnership (PPP) concession.
He said the project, initially stalled due to a preferred bidder’s failure to finalise terms, was re-concessioned to a reserve contractor, Messrs Quaint Power and Infrastructure Nigeria Limited, after the original offer lapsed.
Adelabu explained that the revitalised plant will prioritise 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 60 MVA, 132/33 kV substation in Lalupon/Ejioku in the Lagelu local government area of the state to alleviate pressure on the grid and improve energy supply.
The substation, part of the Siemens-backed Presidential Power Initiative (PPI), 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 330 kV Ayede substation and the construction of a new Asejire 330 kV substation, further stabilising the grid for over 5 million residents.
Completion is estimated at 24 months.
Adelabu, while underscoring their role in resolving decades-old infrastructure gaps, said: “These interventions will directly uplift livelihoods, attract industries, and position Oyo State as a model for Nigeria’s energy transition.”
FG Concessions Ikere Gorge Plant, Approves Grid Upgrade In Oyo is first published on The Whistler Newspaper
