The Federal Executive Council (FEC) has approved a series of significant initiatives aimed at strengthening Nigeria’s power infrastructure and expanding electricity access, with key projects targeting Oyo State.
One of the highlights is the re-concessioning of the Ikere Gorge Hydropower Plant, originally awarded in 2019 through a public-private partnership. The Minister of Power, Adebayo Adelabu, announced after the council meeting that the previous concessionaire failed to fulfill contractual obligations. A new partner has now been engaged to upgrade the plant’s capacity from 6 megawatts to between 15 and 20 megawatts.
The new agreement includes a one-time concession fee of ₦291.6 million and an annual concession payment of ₦66.3 million to the federal government. The project is expected to improve electricity access in the Okiogun area of Oyo State, supporting local agriculture and industrial growth.
“This initiative will significantly improve power supply in the region and spur economic development,” Adelabu said.
In addition, the council approved the construction and installation of a 260MVA, 132/33KV substation in Ibadan, valued at $18.3 million and ₦9.9 billion. The substation aims to modernize aging infrastructure and reduce frequent power outages in areas including Uwo Road, Monatan, and Yanofa.
“This is a strategic intervention aligned with the Renewed Hope Agenda to stabilize the national grid and empower local communities,” Adelabu noted.
FEC also gave the green light for the procurement of three operational vehicles for the Power Company of Nigeria. The vehicles will support the implementation of the Siemens-backed Presidential Power Initiative by facilitating project monitoring and execution across the country.
“These efforts reflect our commitment to accelerating power sector reforms and ensuring reliable electricity for all Nigerians,” the minister concluded.