The Oyo State Government has initiated immediate interventions, including a 12-megawatt independent gas-powered project to end power deficit in the state.
The project is expected to become operational in two months, an official of the state said.
The Commissioner for Energy and Natural Resources, Professor Dawud Sangodoyin, who disclosed this on Wednesday during a press conference, said the development represents one of the measures to bridge electricity deficit in the state.
The state currently generates between 151 and 182 megawatts of electricity far below the estimated minimum requirement of 520 megawatts required to sustain a modern economy.
Bridging the electricity deficit, he explained, will raise available capacity to about 194 megawatts in the short term.
He added:“That is just the beginning. The plan is to add another 120 megawatts between the second quarter of this year and the second quarter of 2027. By doing so, we aim to reach close to 300 megawatts, which will significantly improve our economic outlook.”
In order to ensure sustainable energy supply, he disclosed that the government has signed a Memorandum of Understanding with Shell to support gas distribution infrastructure, pending regulatory approvals from federal authorities.
“Shell is supporting us with gas distribution from our gateway. Once we conclude discussions with the relevant national authorities, this will significantly ease our supply constraints,” he stated.
According to him, the state is opening up its electricity market to private sector participation, with plans to license multiple operators across generation, transmission, and distribution.
“We are creating a framework that allows investors to access our electricity priority plan, conduct feasibility studies, and deploy solutions. The state has been segmented into industrial, institutional, residential, and underserved clusters to guide targeted investments,” he said.
He said that at least one investor has already expressed interest in hydroelectric power generation.
Speaking on regulation, Sangodoyin emphasized that the Oyo State Electricity Regulatory Commission now serves as the primary authority overseeing electricity activities within the state.
He said:“There is now a local regulator empowered to license operators and address issues related to supply, tariffs, and service delivery. Anyone operating in the electricity space within the state must obtain appropriate licensing from the commission.”
He added that the commission has established a complaint resolution system, pledging to respond to issues raised by residents and businesses within 72 hours.
Speaking on infrastructure upgrades, the commissioner said the independent power project will initially supply electricity to critical public institutions in Ibadan, including the State Secretariat, Government House, courts, and surrounding street lighting networks.
“This project will improve efficiency across key government infrastructure. We will also conduct an energy audit to enable nearby communities to benefit,” he explained.
The state has also begun transitioning parts of its street lighting network to solar energy, with pilot projects already yielding positive results.
“We have tested solar-powered street lighting in some locations, and the results are encouraging. The plan is to scale this across the state,” he said.
Sangodoyin stressed that improved electricity supply would reduce business costs, enhance productivity, and create jobs.
“I have seen artisans working late into the night because that is when power is available. If we can ensure stable electricity during the day, productivity will increase, with a ripple effect on the economy,” he noted.
He disclosed that the government has engaged more than 30 potential investors, assuring them of a transparent and stable regulatory environment.
“With clear regulations, policy consistency, and investment protection, we are creating an enabling environment. Investors will bring capital and innovation, while we provide the framework,” he said.
On concerns over alignment with federal authorities, Sangodoyin maintained that the state’s reforms are consistent with national laws, including the Electricity Act and the Petroleum Industry Act.
“We are not acting in isolation. Our approach aligns with federal laws, and we are engaging relevant institutions to ensure a win-win outcome,” he said.
He also emphasized the import of competition in the electricity market, warning against monopolies.
“If only one entity controls the market, we risk repeating past challenges. With multiple players, service delivery will improve and tariffs will become more competitive,” he said.
