Oyo Begins 17.7MW Mini-Grids as FG Rules Out Tariff Hike

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Oyo Begins 17.7MW Mini-Grids as FG Rules Out Tariff Hike

Five interconnected mini-grid projects with a combined capacity of 17.7 megawatts are being developed in Oyo State to improve electricity access in communities across five local government areas.

The Minister of Power, Joseph Tegbe, announced the projects at their groundbreaking ceremony, dismissing reports of a planned electricity tariff increase and saying the Federal Government’s priority was to improve power supply.

The projects, comprising the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega mini-grids, are located in Akinyele, Ido, Ibadan North, Egbeda and Lagelu local government areas. They are supported by a 17.74-megawatt battery energy storage system.

According to Tegbe, the initiative is expected to improve electricity supply to homes and businesses, reduce dependence on generators, extend operating hours and create opportunities for investment and job creation.

He said the projects formed part of the Federal Government’s efforts to expand electricity access, noting that similar interventions supported by the Rural Electrification Agency had been implemented in communities across Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.

Tegbe acknowledged the contributions of the REA, Paras Energy and Natural Resources Development Limited, the project developer, the World Bank, which provided financing, and the Ibadan Electricity Distribution Company.

He also commended the Oyo State Government, traditional rulers, community leaders and host communities for their cooperation, particularly the Olubadan of Ibadanland for his support.

Addressing concerns about electricity tariffs, the minister said the Federal Government had no plan to increase rates, urging Nigerians to disregard reports suggesting otherwise.

He said the government was working towards round-the-clock electricity supply, beginning with three proposed energy corridors: Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt.

Tegbe added that plans were underway to strengthen the national grid across the eastern and western corridors, with interventions at strategic generation and transmission locations including Funtua, Kainji, Gwagwalada, Gombe, Makurdi, Ajaokuta, Ikot Ekpene, Benin and Egbin.

He said the planned improvements were intended to extend electricity stability and reliability beyond the initial energy corridors and make 24-hour power supply achievable nationwide.

The minister formally flagged off the projects on behalf of President Bola Ahmed Tinubu, expressing hope that their completion would improve livelihoods and expand economic opportunities in the beneficiary communities.