The Federal Government has approved two significant energy initiatives in Oyo State, aimed at strengthening Nigeria’s national grid and tackling longstanding power supply challenges.

This was disclosed in a statement released by Bolaji Tunji, media aide to the Minister of Power.

The decisions, finalized during Monday’s Federal Executive Council meeting, include the revival and concessioning of the long-dormant Ikere Gorge Hydropower Plant and the construction of a high-capacity substation in Ibadan.

These projects signal a strategic move to modernize Nigeria’s aging energy infrastructure and enhance electricity access across key regions.

The new substation, to be situated in the Lalupon/Ejioku axis of Lagelu Local Government Area, is expected to significantly improve power reliability for communities along Iwo Road, Monatan, Olodo, and surrounding areas in Ibadan, a major commercial hub.

The Ikere Gorge Hydropower Plant, originally commissioned in 1980 under President Shehu Shagari’s administration after its launch in 1979 by then-military ruler Olusegun Obasanjo, will undergo a comprehensive upgrade.

The revitalization effort aims to restore the plant’s capacity and integrate modern technology to boost its contribution to the national grid.

The Minister of Power, Adebayo Adelabu, revealed that the facility’s capacity will expand from 6MW to 20MW under a 30-year public-private partnership 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 statement added.

Adelabu stressed that the upgraded plant will prioritize providing energy to Oyo’s Oke Ogun communities, with a higher concession fee set to guarantee its long-term sustainability.

Meanwhile, the government has also approved the construction of a 2 x 60MVA, 132/33KV substation in Lalupon/Ejioku, Lagelu Local Government Area, to ease pressure on the grid and enhance energy supply.

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

Adelabu emphasized that the infrastructure will provide a foundation for key investments, improve service delivery, and support President Tinubu’s Renewed Hope Agenda for sustainable energy.

“The project 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 five million residents. Completion is 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,” it was added.