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FG Concessions Hydro Power Plant, Approves Grid Upgrade With New Substations


The Federal Government has approved two major energy projects in Oyo State aimed at fortifying the national grid and addressing persistent power challenges.

The decisions, ratified during Monday’s Federal Executive Council (FEC) meeting, include reviving and concessioning the decades-old Ikere Gorge Hydropower Plant and constructing a high-capacity new 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. These were contained in a statement yesterday by Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Mr Bolaji Tunji.

Originally launched in 1979 under the military regime of former President Olusegun Obasanjo, and operationalised in 1980 during President Shehu Shagari’s tenure, according to Tunji, the Ikere Gorge Hydropower Plant will now undergo a significant upgrade. A statement by Tunji stated that the Minister of Power, Chief Adebayo Adelabu, revealed that the facility’s capacity would expand from 6MW to 20MW under a 30-year publicprivate partnership (PPP) concession.

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

The statement further said 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. It added that the substation, part of the Siemensbacked Presidential Power Initiative (PPI), is to be funded directly by the Federal Ministry of



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