Oyo State Governor, Seyi Makinde, has inaugurated the state’s first Independent Power Project (IPP), an 11-megawatt Ibadan Hybrid Power Plant, located at the Power House, Secretariat, Agodi, Ibadan. Speaking at the commissioning event on Friday, Makinde urged energy investors to collaborate with the state, emphasizing the vast energy market and the government’s commitment to energy sufficiency.
The hybrid plant, which combines 1 megawatt of solar power and 4 megawatts of gas-fired generation, represents the initial phase of a larger energy vision aimed at bolstering economic growth and infrastructure development. The governor also announced plans for a 500-megawatt solar power project in Itesiwaju Local Government Area to enable Oyo State to generate and potentially export electricity.
Private Investment Model Driving Energy Transformation
Governor Makinde highlighted that the IPP, implemented under a Build, Own, Operate, and Transfer (BOOT) model, is entirely financed by private investment. He lauded the private sector’s role in addressing Nigeria’s energy deficits and assured investors of the state’s commitment to creating an enabling business environment.
“This power plant is 100 percent private investment because the government doesn’t have the resources to do everything. But we’ve provided the infrastructure and stability for investors,” he said, citing road construction, security, and agribusiness development as key drivers of economic progress.
Makinde also emphasized the groundbreaking nature of the IPP, which was initiated in December 2021, two years before states were legally empowered to generate and distribute their own electricity. The state’s swift adoption of the Oyo State Electricity Regulation Bill earlier this year underscores its proactive approach to energy independence.
Economic Growth and Future Plans
The governor noted that these initiatives have significantly boosted the state’s economy, with its Gross Domestic Product (GDP) growing from N2.75 trillion in 2019 to N4.05 trillion in 2022. He called reliable electricity a “game changer” for economic transformation and pledged continued investment in energy projects.
“This IPP will add 5 megawatts to the state’s energy supply, which is 7 percent of the average 80 megawatts Oyo receives from the national grid,” Makinde explained. “While modest, this step is vital as we work towards larger projects like the 500-megawatt solar plant.”
Broader Impact and Partnerships
The IPP is expected to provide uninterrupted power to critical infrastructure, including the government secretariat, healthcare facilities, schools, and the Lekan Salami Sports Complex, benefiting over 8,000 public servants and 15,000 patients. Commissioner for Energy and Mineral Resources, Barr. Temilolu Ashamu, praised the project’s potential to enhance energy reliability and sustainability.
The project was delivered in partnership with Elektron Energy Limited, whose Managing Director, Tola Talabi, confirmed the plant would be operated for 15 years before being transferred to the state government.
Dignitaries and Public Support
The commissioning was attended by key stakeholders, including Deputy Governor Abdulraheem Bayo Lawal, PDP Deputy National Chairman (South) Taofeek Arapaja, members of the state’s executive council, traditional rulers, religious leaders, and business representatives.
Governor Makinde reaffirmed his administration’s commitment to attracting more energy investments, concluding, “There are better days ahead for Oyo State. This is just the beginning of our journey toward energy self-sufficiency and economic prosperity.”
