Oyo State governor, ‘Seyi Makinde, has commissioned the first phase of the 11 Megawatts Ibadan Hybrid Power Plant, the state’s first-ever Independent Power Project (IPP).
The commissioning of the IPP was done on Friday at the Power House, Secretariat, Agodi, Ibadan.
He also seized the opportunity to call on investors in the energy sector to partner with the state, noting that there is a huge energy market in the state.
Governor Makinde said it has become imperative for the private sector to move in to plug the country’s energy deficiency.
He noted that the vision of his administration to enhance energy sufficiency in Oyo State was on course with the Megawatts Ibadan Hybrid Power Plant.
Makinde stated that the first phase of the project comprises one megawatt solar power and four megawatts of gas-fired power generator, which would be pivotal to the future development of the state.
He added that his government also aims to launch a 500 Megawatts Solar Power Project in Itesiwaju Local Government Area of the state.
This, he said, will enable the state to generate its own electricity locally and also be able to export same to other countries.
According to the governor, the power plant, a private investment under the Build, Own, Operate and Transfer (BOOT) model, started two years ago, would contribute to the overall development of the state as part of his administration’s efforts to expand the economy of state.
Governor Makinde noted that other efforts included investments in infrastructure development, interconnecting all the zones for equal development, investment in agribusiness to attract investors as well as heavy investments in security to guarantee a safe and secure environment for the people.
He declared that these efforts had culminated into 90 per cent growth in the state’s economy from a N2.75 trillion Gross Domestic Product (GDP) in 2019 to N4.05 trillion GDP as of 2022.
Makinde said: “We are here to commission the first phase of a project that I believe would serve as the fulcrum that is pivotal to the future development of our dear state.
“This power plant is 100 per cent private investment because the government doesn’t have the money to do everything.
“But as a government, we provided the enabling environment for investors to know that we are serious people.
“We have invested in road construction, interconnecting all the zones so that development spreads across the state.
“We have focused on agribusiness so that investors come into our state through Private Public Development Partnership.
“We have invested in security so that we can see our dear state as one of the best investment destinations in Nigeria.
“We have taken strategic steps to reduce our infrastructure deficit and the result has been the growth of our economy. Our GDP grew by about 90 per cent; from 2.75trn in 2019 to N4.05trn as of 2022.
“But as we speak to these investors, they always talk about one aspect of the economy that should be an absolute game changer, having reliable and uninterrupted power supply. It’s a big deal.
“I know where we ought to be as a nation in terms of capacity to generate and distribute electricity, but we are nowhere near that place. That is why all over the place, we have generators.
“So, when we had the groundbreaking ceremony here, it became clear to us to go from growth to a game-changer for our economy to go to scale, a point where you are just using what you have to stretch the envelope.
“The groundbreaking was done on Saturday, 11th of December, 2021. This was two years before the Federal Government gave the go-ahead for states to have powers to generate, transmit and distribute their own power.
“Now, as a state, we can look at our own power requirements and bridge the gap without looking towards anyone else. And this is exactly the trajectory we are on in Oyo State.
“We took advantage of the changing times and worked with the House of Assembly. In February this year, we signed the Oyo State Electricity Regulation Bill into law. So, it is in force now.
“We wasted almost a year trying to get approval from the Nigeria Electricity Regulatory Commission (NERC) for this power plant.
“But for the next power plant, it is now under our own control. It won’t take one month. I am saying to investors now that the coast is clear.
“So, today, we are here to commission the first phase of the IPP. I thank our partners for believing in us, because what you have done is to put in your money with the hope that you will recover it from our monthly payment. I give you the assurance that we will not default.
“With the completion of this phase, Oyo State has gone from producing electricity at the mini-grid stage to 5MW electricity with 4MW gas and 1MW of solar.
“You may be thinking that the 5MW is low but let us put this in perspective. Oyo State receives an average of 80MWatts from the national grid. The 5MW is roughly seven per cent. We may be going to 500MW but, today, we have taken a step.”
The governor described the IPP as a game-changer, noting that there are, indeed, better days ahead for Oyo State economically.
He said: “This is an absolute game-changer. We signed an agreement with Shell and they have welded the first pipe and the $100m investment is well on its way. This is a direct investment that is not going through anybody.
“Truly, there are better days ahead for the Oyo State economy and all of us here are playing a part in making history.
“As I said, we are not stopping here. Even if they want to stop us, we won’t stop because we are well on our way. So, we are seeking more investors in the energy sector from the state and there is a market for that.”
Earlier in his welcome address, the state Commissioner for Energy and Mineral Resources, Temilolu Ashamu, said the vision to provide uninterrupted power supply to Oyo State-owned infrastructure and facilities was conceived by Governor Makinde in 2019.
He said the project would impact over 8,000 public servants and over 15,000 patients with supply of uninterrupted power to critical infrastructure.
These, Ashamu said, included the Government Secretariat, 12 health facilities, selected schools and Lekan Salami Sports Complex, among others.
He disclosed that the IPP will also enhance safety and visibility, significantly boosting energy reliability and sustainability.
Also in his presentation, Managing Director/Co-CEO, Elektron Energy Limited, Mr Tola Talabi, lauded the state government for partnering with the company and delivering the project to the people of Oyo State.
He stressed that the company would operate the plant for 15 years before handing it over to the government.
The event had in attendance the state deputy governor, Chief Abdulraheem Bayo Lawal; PDP Deputy National Chairman (South), Ambassador Taofeek Arapaja; former deputy governors Hamid Gbadamosi and Hazeem Gbolarumi; Speaker of the Oyo State House of Assembly, Rt. Hon Adebo Ogundoyin; and the Chief Judge of Oyo State, Justice Iyabo Yerima.
Also in attendance were Secretary to the State Government, Professor Olanike Adeyemo; Chief of Staff to the Governor, Hon. Segun Ogunwuyi; former Speaker of the House of Assembly, Senator Monsurat Sumonu; chairman and co-chairman of the Oyo State Elders’ Council, Dr Saka Balogun and Elder Wole Oyelese.
Others were notable businessman and elder statesman, Chief Bode Amoo; former President-General of the Central Council of Ibadan Indigenes (CCII), Chief Bayo Oyero; Mama Elizabeth Akinyele; PDP chieftains; local government chairmen, service commanders, traditional rulers, religious leaders and labour union leaders, among others.
