Oyo Targets 300MW Power Supply, Expands Investment Drive In Energy Reform
•By OYENIYI AWOJOODU
IBADAN — THE Oyo State Government has unveiled a comprehensive roadmap to transform its electricity sector, projecting an increase in power supply to 300 megawatts by 2027 as part of efforts to boost economic growth and improve service delivery.
The Commissioner for Energy and Natural Resources, Professor Dawud Sangodoyin, who also chairs the Oyo State Electricity Regulatory Commission, disclosed this on Wednesday during a press conference held at the Governor’s Office in Ibadan.
Sangodoyin revealed that the state currently generates between 151 and 182 megawatts of electricity far below the estimated minimum requirement of 520 megawatts needed to sustain a modern economy.
“Our findings show that the minimum electricity requirement for a state like ours is about 520 megawatts. What we currently have fluctuates between 151 and 182 megawatts, and even that is unstable. This means we are operating at less than 25 per cent of what is required,” he said.
To bridge the deficit, the state has initiated immediate interventions, including a 12-megawatt independent gas-powered project expected to become operational within two months. This, according to the commissioner, will raise available capacity to about 194 megawatts in the short term.
“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,” he added.
As part of efforts to ensure sustainable energy supply, 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,” Sangodoyin stated.
He further disclosed that 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, noting that at least one investor has already expressed interest in hydroelectric power generation.
On regulation, Sangodoyin emphasized that the Oyo State Electricity Regulatory Commission now serves as the primary authority overseeing electricity activities within the state.
“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 said.
He added that the commission has established a complaint resolution system, pledging to respond to issues raised by residents and businesses within 72 hours.
Highlighting 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.
Addressing concerns about 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 underscored the importance 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.
Despite acknowledging transitional challenges, particularly with existing distribution companies, the commissioner expressed confidence in the reform process.
“Every reform comes with challenges, especially during transition. However, we are engaging all stakeholders to ensure that the people of Oyo State ultimately benefit,” he added.
He reaffirmed the government’s commitment to delivering reliable, affordable, and sustainable electricity.
“Our objective is clear: to provide power that supports businesses, improves livelihoods, and positions Oyo State as a leader in subnational electricity development in Nigeria,” Sangodoyin concluded.