Elektron Energy Clarifies Position On Oyo State IPP; Reaffirms Its Unassailable Project Track Record And Continued Commitment To Service Delivery

Lagos, Nigeria – 9th Dec 2025 – Elektron Energy has become aware of recent media commentary attributed to the Oyo State Commissioner for Energy and Mineral Resources concerning its subsidiary, Ibadan Hybrid Power Ltd. (“IHPL”), the Independent Power Project serving designated Oyo State Government (“OYSG”) facilities. While we are unable to disclose confidential information pertaining to the Power Purchase Agreement (“PPA”) between IHPL and OYSG in the media, we consider it important to set the record straight.

Following an agreement between OYSG and IHPL to deliver a phased rollout of power supply, IHPL successfully delivered the targets set for the initial phase of the project. This was marked by His Excellency, Seyi Makinde, the Oyo State Governor’s commissioning of Phase 1 of the project on 6th December 2024. Subsequently, IHPL supplied reliable power to OYSG until it was forced to halt service due to a sustained lack of payment for the better part of a year.

Thus, the characterisation of the project’s performance in the recent commentary does not reflect the facts, the delivery capacity of IHPL or its parent, or the contractual history of the engagement.

The payment-related dispute is currently being addressed through the PPA-mandated dispute-resolution and arbitration process, which both parties are bound to by contract and which IHPL continues to follow in good faith.
Elektron Energy through IHPL remains fully committed to fulfilling the terms of the service level agreements. We are proud of the confidence our stakeholders place in our service across our IPPs and our track record speaks for itself.

Whilst we seek a remediation of these challenges through the appropriate channels, we remain open to collaborative engagement with the Oyo State Government towards fairness and accountability, a critical requirement for private sector investments to be ushered into the State.

We continue to value our relationship with OYSG and its leadership and believe that all outstanding issues are best resolved through the agreed legal and commercial frameworks.