Oyo Terminates N8.2bn 11-megawatt Power Contract

Oyo State government has terminated the contract for its N8.2 billion 11-megawatt Independent Power Project (IPP) developed by Elektron Energy, citing underperformance and eventual shutdown of operations at the facility.

The development was confirmed by the state’ Commissioner for Energy and Mineral Resources, Professor Dahud Kehinde Shangodoyin, during a media chat in Ibadan.

According to him, an assessment conducted after he assumed office in May revealed that the first phase of the project, designed to generate five megawatts, was producing only about 2.6 megawatts, with the state government utilising roughly 1.5 megawatts.

He explained that, despite several engagements and a two-month grace period granted to the private partner to improve performance and extend supply to nearby communities, there was no significant improvement.

The commissioner stated that the partners eventually shut down the plant in July 2025, prompting the state government to revoke the agreement formally.

With the contract now terminated, the Oyo State government had redirected its efforts toward developing a new 12-megawatt power project.

Shangodoyin disclosed that the new project was scheduled to commence within the next four months.
The government then assured that the state remains committed to tackling energy challenges and pursuing innovative solutions that will support Oyo State’s broader development goals.