FG Rules Out Electricity Tariff Hike, Begins 17.7MW Projects in Oyo

By Adebola Muili

The Federal Government has ruled out an increase in electricity tariffs, announcing the commencement of five interconnected mini-grid projects with a combined capacity of 17.7 megawatts in Oyo State.

The Minister of Power, Joseph Tegbe, gave the assurance on Thursday while flagging off the projects, which are expected to improve electricity supply to communities across five local government areas of the state.

This was contained in a statement made available to journalists on Thursday, in which Tegbe urged Nigerians to disregard reports of a planned tariff increase, saying the government’s priority was to achieve round-the-clock electricity supply across the country.

He identified three proposed energy zones through which the government intends to pursue improved electricity supply: the Lagos-Ogun corridor, the Abuja-Kaduna-Kano corridor, and the Benin-Enugu-Port Harcourt corridor.

The minister also disclosed plans to strengthen the national grid across the eastern and western corridors to improve electricity stability and reliability beyond the proposed energy zones.

The five mini-grid projects comprise the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-elega interconnected mini-grids located in Akinyele, Ido, Ibadan North, Egbeda and Lagelu local government areas of Oyo State.

The projects are supported by a 17.74-megawatt battery energy storage system intended to improve electricity availability in the beneficiary communities.

According to Tegbe, the initiative would reduce dependence on generators, extend business operating hours and create a more favourable environment for investment and job creation.

He described the projects as part of the Federal Government’s Renewed Hope Agenda to expand electricity access nationwide, noting that similar interventions supported by the Rural Electrification Agency had been implemented in communities across Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.

The minister acknowledged the contributions of the Rural Electrification Agency, Paras Energy and Natural Resources Development Limited, the project developer, the World Bank, which provided the financing, and the Ibadan Electricity Distribution Company.

He also commended the Oyo State Government, traditional rulers, community leaders and host communities for their cooperation, particularly acknowledging the support of the Olubadan of Ibadanland.

Tegbe, who flagged off the projects on behalf of President Bola Tinubu, expressed optimism that their completion would improve livelihoods and expand economic opportunities in the beneficiary communities.