Oyo opens electricity market, targets 300 MW by Q2, 2027

…As 30 investors show interest

The Oyo State Government says it is opening up the electricity market with almost 30 investors willing to come through the Oyo State Electricity Regulatory Commission, which has an integrated electricity resource plan, 2026 to 2036.

While saying that the minimum electricity required is about 520 megawatts in the state, Dahud K. Shangodoyin, commissioner for Energy and Mineral Resources, who also doubles as acting chairman, Oyo State Electricity Regulatory Commission (OYSERC) said that the state wants to address deficits within the next three quarters, amid plans to move to another stage.

“Right now, what we have is just 182 megawatts, which means we are having less than 25 percent of what is required minimally. Now, the state has invested in a 12-megawatt Ibadan Independent Gas Project, which if added to 182 megawatts, will give us about 194 megawatts. Now, that is not all.

“The plan of the governor, through this commission, is to add about 120 megawatts between Quarter 2 of this year and Quarter 2 of 2027, which means we will be aiming at 300 megawatts, which will be at least close to 60 per cent of what is needed to grow the economy of Oyo State,” he said.

Speaking during a press briefing held at the Governor’s Office Briefing Room, Secretariat, Agodi, Ibadan, Sangodoyin noted that Oyo State has begun a more sustainable and technically robust 12 megawatts Ibadan Independent Power Gas Project, which will serve not only the government secretariat but also some strategic public institutions.

He said that the project would reduce operating costs and expand the economy of the state, explaining further that the state currently receives 183 megawatts from the national grid, which is far below the minimum of 520 megawatts required for economic growth.

Shangodoyin noted that the state government has invested in a 12-megawatt Ibadan Independent Gas Project, with plans to add about 120 megawatts before the expiration of the current administration in 2027.

He added that the power project represents a shift from experimental power supply to a structured, scalable and integrated electricity solution to support industrial growth, attract investors, create job opportunities and boost the economy of the state.

The commissioner stated that as part of its responsibilities, the OYSERC regulates operators in the electricity industry in the state. He, therefore, called on residents of the state to always channel their complaints about the Ibadan Electricity Distribution Commission (IBEDC) to the commission.

“There is no meaningful development that we can have in the state without reliable infrastructure. And, at the heart of this infrastructure lies energy. His Excellency, Governor Seyi Makinde, from Omituntun 1.0 to 2.0, has been building the foundation for sustainable economic growth through deliberate investments in power and infrastructure.

“Nigeria has witnessed a landmark reform in the energy sector through the Electoral Act 2023. This law empowers each state to manage its own generation, distribution and transmission of electricity, and equally to regulate its own electricity market,” he said.

The commissioner stated that Oyo State has already signed an MoU with Shell for the distribution of gas needed for power generation.

“Also, we are thinking of approving three or four energy providers to subscribe to the need of the state.

We already have one that is interested in generating hydroelectricity through Asejire. And, for the commission, the website is on.

“We are working with the Nigerian Electricity Regulatory Commission. However, with the law that established the Oyo State Electricity Regulatory Commission, there is no other regulator that is allowed to do any business concerning electricity regulation in the state other than OYSERC. Even the IBEDC will need a licence from the commission. So, anyone who has complaints in terms of electricity supply, consumption and tariff in Oyo State should come to OYSERC.”

On the key initiatives of the commission, Shangodoyin said, “The independent power project will help us to power critical infrastructure within Ibadan. These include the Secretariat, the Government House, BCOS, the Oyo State High Court, the Customary Court around Iyanganku area, State Hospital at Adeoyo Yemetu, Lekan Salami Sports Complex and all the streetlights around these areas.”

He added that the project would support the expansion of businesses along that route and improve the living standards of residents in the areas.