The Ondo State Government has expressed readiness to partner with the Federal Government Power Company under the Presidential Power Initiative (PPI) on commercial electricity transmission arrangements.
The proposed collaboration between the federal and state governments aims to enhance grid reliability and ensure a more stable and efficient power supply across the state’s communities.
The Commissioner for Energy and Mineral Resources, Dr. Johnson Alabi, who spoke while receiving a delegation from the Federal Government Power Company in his office, emphasized that the Aiyedatiwa administration recognizes electricity as a critical driver of economic growth, noting that sustainable development cannot be achieved without reliable power.
He disclosed that the state has commenced efforts to procure electricity directly from Generation Companies (GenCos) as part of broader power sector reforms.
He also noted that the amended Electricity Act, signed into law in 2023, has created new opportunities for sub-national governments to participate actively in the electricity value chain.
According to him, the state is well-positioned to leverage these opportunities to improve power supply in different communities in the state.
Highlighting existing challenges, Alabi explained that inadequate and obsolete transmission infrastructure has significantly constrained electricity supply in the state.
His words “To optimally drive the economy of Ondo State, we require about 700MW of electricity; however, we currently have less than 100MW available.”
Alabi revealed that the state is expanding its involvement beyond generation and distribution to include transmission, leveraging the decentralization enabled by recent reforms.
He cited the Omotoso Power Plant, which generates about 1,000MW without directly benefiting the state, as a key example of untapped potential.
He also disclosed that plans for a state-owned grid are underway, citing the unreliability of the national grid and the limited capacity of the Osogbo–Akure transmission line, which can barely accommodate 50MW, far below the state’s requirements.
According to him, the state has made significant progress in establishing its electricity market framework.
These he said, included the creation of the Ondo State Power Company (OSPC) for electricity distribution and the Ondo State Electricity Regulatory Bureau (OSERB) to ensure compliance, protect consumers, and boost investor confidence.
He said the state has pioneered sub-national metering initiatives and established a Special Offences Court to prosecute electricity-related infractions, thereby safeguarding investments in the sector.
On the proposed transmission project by the FGN Power Company, Alabi stressed the importance of state ownership of the infrastructure upon completion to ensure optimal control and alignment with the state’s independent grid ambitions.
He reaffirmed the state’s commitment to the partnership and urged that the transmission project be extended beyond Ondo town to Owo, Akoko, Ose, and other underserved areas currently lacking access to the national grid.
In his response, the Chief Commercial Officer of the FGN Power Company, Mr. Babatunde Daramola-Oniru, stated that the Presidential mandate is to increase electricity supply by 4,000MW nationwide within the next three years, with Ondo State identified as a key beneficiary.
He commended the state government’s proactive approach, describing the engagement as the foundation of a strong and mutually beneficial partnership.
The Co-Coordinator of the Transmission, Engr. Leonard Ogwu, outlined the project scope, noting that the proposed transmission line will originate from Ondo town and extend to adjoining communities.
Upon completion, he said the project is expected to deliver approximately 240MW, significantly boosting socio-economic activities across the state.
This development came as Governor Lucky Aiyedatiwa approved the procurement of new transformers in a renewed effort to improve electricity distribution in underserved communities.
Alabi said “We are deploying transformers in phases to ensure fairness and transparency. These are not just for distribution; we are also ensuring proper installation and energisation so that communities can truly benefit.
Alabi further revealed that the State Power Company has taken over key electricity feeders previously managed by legacy operators, describing the move as “a major step towards energy independence.”
According to him, “With the takeover of these feeders, we can now extend power supply to more communities and exercise better control over distribution within the state.”
On transmission, the Commissioner disclosed plans by the state to construct its own power grid to reduce dependence on the national grid.
His words “We are already engaging private investors to build a state-controlled grid. This will allow us to take power directly and distribute it with minimal reliance on the national grid,” he explained.
He said that the proposed grid would link the southern and northern parts of the state, improving reliability and boosting economic activities.
Speaking on power generation, Alabi noted that the government is creating an enabling environment for private investors to establish power plants across the state.
He said: “We have issued licenses to several investors, and some have already commenced operations. Our role is to support them so they can generate power that will serve our people efficiently.”
The Commissioner also highlighted the government’s commitment to consumer protection, revealing that over ₦101 million had been recovered for residents affected by estimated billing.
Alabi said “We are determined to protect our people. Through our regulatory efforts, we have ensured refunds where consumers were overbilled.”
While appealing for patience, Alabi assured residents that ongoing engagements at both state and national levels would soon ease the current power challenges.
His words “We understand the impact on businesses and daily life. We appeal for patience as efforts are in top gear to stabilise supply. In the coming days and weeks, we expect significant improvement.”
