Makinde Seeks Investment In Oyo State Energy Sector

Oyo State governor, ‘Seyi Makinde, has called on investors in the energy sector to partner with the state, noting that there is a huge energy market in the state.

He stated this on Friday, while commissioning the first phase of the 11 Megawatts Ibadan Hybrid Power Plant, the state’s first-ever Independent Power Project, at the Power House, Secretariat, Agodi, Ibadan.

The governor said it had become imperative for the private sector to move in to plug the country’s energy deficiency, noting that his administration’s vision to enhance energy sufficiency in Oyo State was on course with the 11 Megawatts Ibadan Hybrid Power Plant.

He explained that the first phase of the project comprises 1 megawatt solar power and 4 megawatts of gas-fired power generator, which would be pivotal to the future development of the state.

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He added that his government would launch a 500 Megawatts Solar Power Project in Itesiwaju Local Government Area of the state so that the state could generate its own electricity locally and also be able to export the same to other countries.

According to the governor, the power plant, a private investment under the Build, Own, Operate and Transfer (BOOT) model, which was started two years ago, would contribute to the overall development of the state as part of his administration’s efforts to expand the state’s economy.

Governor Makinde noted that other efforts included investments in infrastructure development, interconnecting all the zones for equal development, investment in agribusiness to attract investors as well as heavy investments in security to guarantee a safe and secure environment for the people.

He declared that these efforts had culminated into 90 per cent growth in the state’s economy from a N2.75 trillion Gross Domestic Product (GDP) in 2019 to N4.05 trillion GDP as of 2022.

He said: “We are here to commission the first phase of a project that I believe would serve as the fulcrum that is pivotal to the future development in our dear state.

“This power plant is 100 per cent private investment, because the government doesn’t have the money to do everything. But as a government, we provided the enabling environment for investors to know that we are serious people. We have invested in road construction, interconnecting all the zones so that development spreads across the state.

“We have focused on agribusiness so that investors come into our state through Private Public Development Partnership. We have invested in security so that we can see our dear state as one of the best investment destinations in Nigeria.

“We have taken strategic steps to reduce our infrastructure deficit and the result has been the growth of our economy. Our GDP grew by about 90 per cent — from 2.75trn in 2019 to N4.05trn as of 2022.

“But as we speak to these investors, they always talk about one aspect of the economy that should be an absolute game changer, having reliable and uninterrupted power supply. It’s a big deal.

“I know where we ought to be as a nation in terms of capacity to generate and distribute electricity, but we are nowhere near that place. That’s why all over the place, we have generators. So, when we had the groundbreaking ceremony here, it became clear to us to go from growth to a game changer for our economy to go to scale, a point where you are just using what you have to stretch the envelope.

“The groundbreaking was done on Saturday, 11th of December, 2021. This was two years before the Federal Government gave the go ahead for states to have powers to generate, transmit and distribute their own power.

“Now, as a state, we can look at our own power requirements and bridge the gap without looking towards anyone else. And this is exactly the trajectory we are on in Oyo State.

“We took advantage of the changing times and worked with the House of Assembly. In February this year, we signed the Oyo State Electricity Regulation Bill into law. So, it is in force now.

“With the completion of this phase, Oyo State has gone from producing electricity at the mini-grid stage to 5MW electricity with 4MW gas and 1MW of solar. You may be thinking that the 5MW is low but let us put this in perspective. Oyo State receives an average of 80MWatts from the national grid. The 5MW is roughly 7 per cent. We may be going to 500MW but, today, we have taken a step.”

The governor described the IPP as a game changer, noting that there are, indeed, better days ahead for Oyo State economically.