FG Flags Off 17.7MW Oyo Mini-grids, Rules Out Electricity Tariff Increase

The federal government has flagged off five interconnected mini-grid projects with a combined capacity of 17.7 megawatts in Oyo State, even as the minister of Power, Joseph Tegbe, ruled out any plan to increase electricity tariffs.

Tegbe announced the projects at their groundbreaking ceremony in Ibadan. They will serve communities in Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas.

The projects comprise the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega interconnected mini-grids. They are supported by a 17.74-megawatt-hour battery energy storage system.

Addressing reports of an impending tariff increase, Tegbe said the federal government had no such plan and urged Nigerians to disregard what he called misinformation.

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” he said.

The minister said the government’s immediate priority was to expand reliable electricity supply, beginning with three proposed energy zones: the Lagos-Ogun corridor, the Abuja-Kaduna-Kano corridor and the Benin-Enugu-Port Harcourt corridor.

He also disclosed plans to strengthen the national grid across the eastern and western corridors, targeting strategic generation and transmission locations including Funtua, Kainji, Gwagwalada, Gombe, Makurdi, Ajaokuta, Ikot Ekpene, Benin and Egbin.

According to the minister, the Oyo mini-grids are expected to improve electricity access for homes and businesses, reduce reliance on petrol and diesel generators, extend business hours and create a more attractive environment for investment and job creation.

“This is part of the Federal Government’s broader Renewed Hope Agenda to expand electricity access nationwide,” Tegbe said, adding that similar interventions supported by the Rural Electrification Agency had been implemented in Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.

He described the initiative as an example of collaboration between government, private enterprise and development partners in addressing Nigeria’s electricity challenges.

The minister acknowledged the roles of the Rural Electrification Agency, Paras Energy and Natural Resources Development Limited as project developer, the World Bank as financier, and the Ibadan Electricity Distribution Company.

He also commended the Oyo State Government, traditional rulers, community leaders and host communities for their cooperation, while paying tribute to the Olubadan of Ibadanland for his support towards the project.

Tegbe flagged off the projects on behalf of President Bola Ahmed Tinubu, expressing the hope that their completion would strengthen livelihoods and expand economic opportunities in the beneficiary communities.