FIC REPORT (OYO STATE) – The Federal Government has commenced the construction of a 17.7-megawatt (MW) interconnected mini-grid in Ibadan, Oyo State, in a major intervention aimed at improving electricity supply, boosting commercial activities and creating new economic opportunities for residents of five communities within the Iwo Road axis of the city.
The groundbreaking ceremony, conducted by the Federal Ministry of Power through the Rural Electrification Agency (REA), marks another step in the government’s efforts to complement the national grid with decentralised electricity generation capable of delivering more reliable power to underserved communities.
The project, being developed by Paras Energy & Natural Resources Development Limited, will serve Bola, Jiboye, Ogo-Oluwa, Molade-Adelubi and Sooko Elega communities, with a target of providing a minimum of 20 hours of electricity daily upon completion.
Speaking at the ceremony, the Minister of Power, Mr. Joseph Tegbe, said the initiative reflected the Federal Government’s commitment to expanding electricity generation, improving the reliability of supply and translating investments in the power sector into tangible economic benefits for Nigerians.
Tegbe explained that the government’s priority went beyond the expansion of electricity infrastructure to ensuring that additional generation capacity supported businesses, industries, productive enterprises and households.
“Our objective is clear: to increase the quantum of electricity available to Nigerians, improve the reliability of supply and ensure that electricity becomes an enabler of productivity, investment and economic growth,” the minister said.
He added that projects such as the Ibadan mini-grid demonstrated how the government’s power-sector commitments were being translated into infrastructure designed to serve communities and productive economic clusters.
The minister noted that the intervention was part of a broader strategy being pursued alongside ongoing efforts to strengthen electricity generation, transmission and distribution infrastructure across the country.
According to him, planned and ongoing improvements along major electricity corridors are expected to reinforce the reliability and resilience of Nigeria’s power supply system.
The Managing Director and Chief Executive Officer of the REA, Dr. Abba Aliyu, described the project as a demonstration of the scale and ambition of distributed energy investments being developed under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Aliyu said the agency was increasingly focused on deploying generation capacity where it could deliver the greatest economic impact while encouraging private-sector participation and sustainable operating models.
“This groundbreaking is about more than 17.7 megawatts of new generation capacity. It is about what that capacity will enable,” he said, adding that reliable electricity would allow businesses to operate longer, reduce dependence on expensive self-generation, increase productivity, attract investments and support job creation.
He said the Ibadan project was part of a growing pipeline of interconnected and isolated mini-grid interventions being facilitated by the agency in different parts of Nigeria.
Aliyu cited previous projects in Pankshin, Plateau State, as well as Kofare, Mbamba and Saminaka in Adamawa State, noting that distributed energy solutions were increasingly evolving beyond basic electricity access to support commercial clusters, productive users and wider economic development.
He reaffirmed the REA’s commitment to deploying reliable electricity infrastructure that would strengthen local economies and create opportunities for businesses and residents.
Upon completion, the Ibadan project will also feature the installation of 18 new transformers to strengthen electricity distribution across the five beneficiary communities.
In a related development, the REA is advancing another 17.7MW of projects in Ibadan, targeting strategic institutions and economic centres, including the University College Hospital (UCH), the University of Ibadan and The Polytechnic, Ibadan.
The two interventions are expected to support the development of clusters of reliable electricity generation around residential communities, public institutions and major centres of economic activity.
The Olubadan of Ibadan, Oba Rashidi Adewolu Ladoja, commended the Federal Government for the initiative, expressing optimism that improved electricity supply would positively affect businesses, households and livelihoods across the beneficiary communities.
The monarch also appreciated President Tinubu for infrastructure projects being implemented across Oyo State and urged the government to ensure their timely completion.
Similarly, the Managing Director of Paras Energy & Natural Resources Development Limited, Yashwant Kumar, reaffirmed the company’s commitment to executing the project efficiently and in accordance with the required standards.
Kumar expressed confidence that dependable electricity would have a transformative impact on residents and businesses within the project area.
The Ibadan mini-grid project underscores the Federal Government and REA’s growing emphasis on combining new generation capacity, improved distribution networks, decentralised energy infrastructure and private-sector investment to address electricity supply challenges.
For the agency, the expected benefits extend beyond the installation of additional megawatts to include longer business operating hours, increased productivity, reduced energy costs, new investment, job creation and improved living conditions for beneficiary communities.
Report by Oladapo Samuel Olugbenga, CAI&PRO. FIC, Ibadan.
