The federal government has announced plans to revamp and concession the 46-year-old Ikere Gorge Hydropower Plant, Oyo state, which was built by the Olusegun Obasanjo government in 1979.

A statement in Abuja by Bolaji Tunji, the Special Adviser on Media to the Minister of Power, Chief Adebayo Adelabu, said the approval of the revival plan for the plant was made at last Monday’s Federal Executive Council (FEC) meeting.

It added that the federal government has also concluded plans for the construction of a high-capacity new electricity substation in Ibadan, signaling a push to modernise infrastructure and boost electricity access.

The new substation to be located in Lalupon/Ejioku axis of Lagelu local government area will boost power supply to Iwo road,  Monatan, Olodo and the adjoining areas in Ibadan, the statement added.

Originally launched in 1979 under the military regime of Obasanjo and operationalised in 1980 during President Shehu Shagari’s tenure, the Ikere Gorge Hydropower Plant, the statement explained, will now undergo a significant upgrade to ensure power supply to unelectrified areas.

Adelabu revealed that the facility’s capacity will expand from 6mw to 20mw under a 30-year Public-Private Partnership (PPP) concession.

“The project, initially stalled due to a preferred bidder’s failure to finalise terms, was re-concessioned to a reserve contractor, Messrs Quaint Power and Infrastructure Nigeria limited, after the original offer lapsed,” the minister added.

Adelabu emphasised that the revitalised plant will prioritise energy access for Oyo’s Oke-Ogun communities, with an upwardly revised concession fee ensuring long-term viability. 

The government also approved the construction of a 2 x 60MVA, 132/33KV substation in Lalupon/Ejioku in Lagelu local government area of the state, to alleviate pressure on the grid and improve energy supply.

The substation, part of the Siemens-backed Presidential Power Initiative (PPI), is to be funded directly by the Federal Ministry of Power and aims to resolve frequent outages and grid  instability plaguing the state capital.

Adelabu noted that the infrastructure will serve as a backbone for strategic investments, enhance service delivery, and align with President Bola Tinubu’s ‘Renewed Hope Agenda’ for sustainable energy.

The project, he said, includes upgrades to the 60-year-old 330KV Ayede substation  and the construction of a new Asejire 330KV  substation, further stabilising the grid for over 5 million  residents, with completion estimated at 24 months.

“Both initiatives are expected to catalyse socio-economic growth by improving power reliability for households, small  businesses, industry, educational and health institutions,” he mentioned.

Adelabu underscored the role of the projects in resolving decades-old infrastructure gaps in the area, stating that: “These interventions will directly uplift livelihoods, attract industries, and position Oyo state as a model for Nigeria’s energy transition.”

The approvals, he pointed out, marked a critical milestone in federal government’s efforts to tackle grid vulnerabilities, with stakeholders anticipating ripple effects on national productivity.