The federal government has approved two major energy projects in Oyo State aimed at fortifying the national grid and addressing persistent power challenges.

Bolaji Tunji, special adviser, strategic communications and media relations to the minister of power, made this known in a statement in Abuja on Wednesday.

Mr Tunji said that the decision was ratified during Monday’s Federal Executive Council (FEC) meeting.

He said that the projects included reviving and concessioning of the decades-old Ikere Gorge Hydropower Plant and construction of a high-capacity new substation in Ibadan.

According to him, the projects signal a push to modernise infrastructure and boost electricity access.

”The new substation to be located in Lalupon/Ejioku axis of 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,” he said.

Speaking on the projects, the minister of power, Adebayo Adelabu, said that the facility’s capacity would expand from 6 Megawatts (MW) to 20MW under a 30-year public-private partnership (PPP) concession.

He said that the projects, which were initially stalled due to a preferred bidder’s failure to finalise terms, were re-concessioned to a reserve contractor, Messrs Quaint Power and Infrastructure Nigeria limited, after the original offer lapsed.

Mr Adelabu said that the revitalised plant would prioritise energy access for Oyo’s Oke Ogun communities, with an upwardly revised concession fee ensuring long-term viability.

He said that the government also approved the construction of a 2 x 60 Mega Volt Ampree (MVA), 132/33KV substation in Lalupon/Ejioku in Lagelu local government area of the state.

Mr Adelabu said that this would help to alleviate pressure on the grid and improve energy supply.

According to him, the substation, part of the Siemens-backed Presidential Power Initiative (PPI) is to be funded directly by the Ministry of Power.

He said that the aim is to resolve frequent outages and grid instability plaguing the state capital.

Mr Adelabu said that the infrastructure would 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 of the 60-year-old 330KV Ayede substation and the construction of a new Asejire 330KV substation.

“It will further stabilise the grid for over five million residents, and completion is estimated at 24 months.

”Both initiatives are expected to catalyse socio-economic growth by improving power reliability for households, small businesses, industry, educational and health institutions.

Mr Adelabu, while underscoring the projects’ role in resolving decades-old infrastructure gaps, said that these interventions would directly uplift livelihoods, attract industries, and position Oyo state as a model for Nigeria’s energy transition.

He said that the approvals marked a critical milestone in efforts by the federal government to tackle grid vulnerabilities, with stakeholders anticipating ripple effects on national productivity.

(NAN)