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Daniel Adaji
The Federal Government has approved the construction of a new power substation in Oyo State and the revival of the long-abandoned Ikere Gorge Hydropower Plant, in a major push to improve electricity supply and modernize Nigeria’s energy infrastructure.
The projects were approved at Monday’s Federal Executive Council (FEC) meeting and are part of efforts to boost grid capacity and power delivery across the country.
Minister of Power, Adebayo Adelabu, informed journalists in Abuja on Wednesday that the Ikere Gorge Hydropower Plant will be concessioned for 30 years under a public-private partnership. The plant’s capacity will increase from 6 megawatts to 20 megawatts.
“These interventions will directly uplift livelihoods, attract industries, and position Oyo State as a model for Nigeria’s energy transition,” Adelabu said.
Originally launched in 1979, the Ikere plant had stalled due to delays from the initial bidder. The concession has now been handed to reserve bidder, Messrs Quaint Power and Infrastructure Nigeria Limited.
Adelabu confirmed that the upgraded plant will primarily serve communities in Oke Ogun, with a higher concession fee secured to ensure long-term viability.
The second approval covers the construction of a 2 x 60MVA, 132/33KV substation in the Lalupon/Ejioku axis of Lagelu Local Government Area in Oyo State. It is designed to improve electricity supply in areas like Iwo Road, Monatan, and Olodo.
Funded directly by the Federal Ministry of Power under the Siemens-backed Presidential Power Initiative (PPI), the new substation will ease pressure on the national grid and resolve frequent blackouts in the state capital.
Adelabu noted that the project supports President Tinubu’s Renewed Hope Agenda, calling it “a backbone for strategic investments” and an important step toward sustainable energy.
In addition to the substation, the government will upgrade the 60-year-old Ayede 330KV substation and build a new 330KV facility at Asejire.
These projects aim to improve grid stability for more than five million people in the region and are expected to be completed within 24 months.
“These approvals mark a critical milestone,” said Adelabu.
“They are part of our broader strategy to close infrastructure gaps and improve power supply for homes, businesses, schools, and hospitals,” he added.
The projects are projected to stimulate economic growth, reduce power outages, and enhance the quality of life for residents in Oyo and beyond.