The Federal Government has approved two major power infrastructure projects in Oyo State aimed at addressing longstanding electricity challenges and boosting grid stability across the region.

The approvals, granted at the Federal Executive Council (FEC) meeting, cover the concessioning and rehabilitation of the Ikere Gorge Hydropower Plant and the construction of a new 132/33kv transmission substation in the Lalupon/Ejioku axis of Lagelu Local Council.

It was revealed that the new substation to be located inLalupon/Ejioku axis of Lagelu Local Council will boost power supply to Iwo Road, Monatan, Olodo and the adjoining areas in Ibadan.

The Minister of Power, Adebayo Adelabu, who disclosed the development, said the move was part of ongoing efforts to modernise Nigeria’s power infrastructure and expand energy access, particularly in underserved communities.

Located in Iseyin, the Ikere Gorge Hydropower Plant was originally initiated in 1979 under the administration of former military Head of State, Olusegun Obasanjo, and commissioned a year later. The facility, which has remained underutilised for decades, Adelabu revealed that it will now be upgraded from a generation capacity of 6 megawatts (MW) to 20MW under a 30-year public-private partnership (PPP) concession.

Adelabu explained that the original concessionaire failed to meet contractual obligations, prompting the government to reassign the project to the reserve bidder, Messrs Quaint Power and Infrastructure Nigeria Limited.

He said the re-concession arrangement includes a revised fee structure to guarantee long-term viability and increased energy delivery to the Oke Ogun region.

The minister added that the revitalised plant is expected to improve electricity access for communities in the Northern part of the state, stimulate rural development, and support micro and small-scale enterprises.