By Korede Abdullah in Lagos
Oyo State Governor, Seyi Makinde, has invited investors in the energy sector to partner with the state, citing a huge energy market. He made this call while commissioning the first phase of the 11 Megawatts Ibadan Hybrid Power Plant, the state’s first Independent Power Project.
The power plant, a private investment under the Build, Own, Operate, and Transfer (BOOT) model, started two years ago.
It comprises 1 megawatt solar power and 4 megawatts of gas-fired power generator, crucial for the state’s future development. Governor Makinde aims to launch a 500 Megawatts Solar Power Project in Itesiwaju Local Government Area, enabling the state to generate electricity locally and export it.
The governor emphasized that private sector investment is necessary to address the country’s energy deficiency.
He highlighted his administration’s efforts to expand the state’s economy, including investments in infrastructure development, agribusiness, and security.
These efforts have resulted in a 90% growth in the state’s economy, from N2.75 trillion GDP in 2019 to N4.05 trillion GDP as of 2022. Governor Makinde assured investors that the state government would provide an enabling environment and not default on payments.
According to the governor, “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.”
The power plant will impact over 8,000 public servants and 15,000 patients, providing uninterrupted power to critical infrastructure.
The Managing Director of Elektron Energy Limited, Mr Tola Talabi, praised the state government for partnering with the company and delivering the project.
The event was attended by dignitaries, including the Deputy Governor, Barr. Abdulraheem Bayo Lawal, and the Chief Judge of Oyo State, Justice Iyabo Yerima.
Governor Makinde described the IPP as a game-changer, noting that better days are ahead for Oyo State’s economy.
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