The Oyo State Government, is leveraging on the 2023 Electriciry Act, to address long-standing power issues and drive economic growth through reliable infrastructure in the state.
Commissioner for Energy and Mineral Resources, Professor Dahud Shangodoyin, stated this during a press briefing organized to address electricity issues in the state, held at the Governor’s office.
According to the Commissioner, Governor Seyi Makinde administration has established Oyo State Electricity Commission to regulate the sector, attract investors, and ensure accountability of service providers.
Professor Ogundoyin added that though the state’s current electricity generation stands at 183MW, far below the minimum 520MW required for economic growth, the government has invested in a 12MW Ibadan Independent Gas Project, with plans to add 120MW by 2027.
He also revealed that Oyo State Electricity Commission in the efforts to exploring hydroelectricity and solar power options, has attracted over 30 investors and signed an MOU with Shell for gas distribution.
“Our findings show clearly that the minimum electricity requirement for a state like ours is about 520 megawatts.”
“What we have at the moment fluctuates between 151 and 182 megawatts, and even that is not stable. That means we are operating at less than 25 percent of what is required,” Sangodoyin said.
He said the government has begun immediate interventions to address the shortfall, including a 12-megawatt gas-powered independent project expected to be operational within two months.
According to him, this is projected to increase available supply 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 said.
Sangodoyin also said the state has signed a Memorandum of Understanding with Shell to support gas distribution infrastructure, subject to regulatory approvals from federal authorities.
“Shell is supporting us with gas distribution from our gateway, once we resolve ongoing discussions with the relevant national authorities, that will take a major burden off our supply constraints,” he said.
The commissioner added that the government is opening up the electricity market to private sector participation across generation, transmission and distribution, noting that at least one investor has already indicated interest in hydroelectric power.
“We are creating a structure where investors can come in, access our electricity priority plan, conduct feasibility studies and deploy solutions.“
“We have segmented the state into industrial, institutional, residential and underserved clusters to guide targeted investments,” he said.
On regulation, he stated that the Oyo State Electricity Commission now serves as the primary authority for licensing and oversight within the state.
“There is now a local regulator empowered to license operators and address issues around supply, tariffs and service delivery, anyone operating in the electricity space within the state must obtain the appropriate license from the commission before operation,” he said.
He added that the commission has introduced a complaints system with a 72-hour response timeline, noting,.“Our website is live, and we have committed to responding to complaints within 72 hours. This is about bringing governance closer to the people.“
Sangodoyin said the independent power project would initially serve key public institutions in Ibadan, including the State Secretariat, Government House, courts and surrounding street lighting.
“This project will power key government infrastructure and improve efficiency. We will also carry out an energy audit to allow nearby communities to benefit from the system,” he said.
He further disclosed that the government has begun transitioning parts of its street lighting network to solar power.
“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.
Highlighting the economic impact, the commissioner said improved electricity supply would enhance productivity and reduce costs for businesses.
“I have personally seen artisans working late into the night because that is when power is available. If we can provide stable electricity during the day, their productivity will increase, and that will have a ripple effect on the economy,” he said.
He said the state has engaged more than 30 potential investors and is working to ensure a stable regulatory environment.
“With clear regulations, consistency in policy and protection for investments, we are creating an enabling environment. Investors will bring capital and innovation, while we provide the framework,” he said.
Sangodoyin added that the state’s actions are aligned with federal laws, including the Electricity Act and the Petroleum Industry Act.
“We are not acting in isolation, our approach is aligned with federal laws, and we are engaging relevant institutions to ensure a win-win outcome,” he said.
He also stressed the need for competition in the electricity market, adding, “If only one entity controls the market, we risk repeating past challenges but with multiple players, service delivery will improve and tariffs will become more competitive.“
Despite expected transition challenges, he expressed confidence in the reform process, stressing, “Every reform comes with its own challenges, especially during transition but we are engaging all stakeholders to ensure that the people of Oyo State ultimately benefit.“
He reaffirmed the government’s commitment to building a reliable and sustainable electricity system.
“Our objective is clear, we want to deliver electricity that supports businesses, improves livelihoods and positions Oyo State as a leader in subnational power sector development in Nigeria,” he said.
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