Being the Remarks by His Excellency Seyi Makinde, the Executive Governor of Oyo State, at the Commissioning of the First Phase of the Oyo State Independent Power Project (IPP) on Friday, 6 December 2024
We are here today to make history as we commission phase 1 of a project that will serve as the fulcrum of future development in our dear State. As every serious business person will tell you, there is a difference between growth and scale. To achieve growth, a company will add resources and try to keep expenditure down. This is what we have been doing in Oyo State for the past five and half years.
We have invested in road construction, interconnecting all zones so that development spreads across the State. We have focused on agribusiness, so that investors come into our State through Public-Private-Development Partnerships. We have invested in security so that people see our dear State as the go-to investment destination in Nigeria. We have taken strategic steps to reduce our infrastructure deficit.
The result has been the growth of our economy. Our Gross Domestic Product (GDP) grew by about 90% from N2.75 trillion in 2019 to N4.05 trillion in 2022.
But as you speak to these investors, they will always talk about one aspect of the economy that would be the absolute game changer. Having reliable and uninterrupted power supply. It became clear to us that for us to go from growth – where we just keep adding resources and trying to keep expenditure down – to scale, where we increase revenue without substantial increase in resources, we have to invest in power.
And so, we had the groundbreaking ceremony for the Oyo State Independent Power Project on Saturday, 11 December, 2021. This was two years before certain provisions in the Constitution of the Federal Republic of Nigeria 1999 (as amended) were altered to allow constituent States within the Nigerian federation to generate, transmit, and distribute electricity in areas covered by the national grid.
We took advantage of the changing times and working with the Oyo State House of Assembly, earlier this year, in February, we signed the Oyo State Electricity Regulatory Commission Bill into law.
And now, today, we are here to commission the first phase of the Oyo State Independent Power Project. Let me thank our partners in this project, Elektron Energy for their role in making this dream a reality. With the completion of this phase, Oyo State has gone from producing electricity for our people at the mini-grids stage to adding 5 MW of electricity.
You may be thinking, what is 5 MW? Let us put this in perspective. Oyo State receives an average of 80 MW from the national grid so, the 5 MW going live today is about 6% of the total being received from the national grid. With this 5 MW added to the mix, it means more power can be distributed to our people.
Also, in the next phase of this project, the remaining 6 MW will be completed which would mean an increase of 14% in total of the electricity being supplied in Oyo State, further reducing the energy deficit in the State.
As I said before, this is an absolute game changer. You will recall that earlier in the year, we signed a final investment agreement for the Oyo State Government-Shell Nigeria Gas Infrastructure Development and Distribution project for the construction of a Pressure Reduction and Metering Station (PRMS) and ancillary gas supply pipelines. When the Shell Nigeria Gas project is completed, the 11 MW IPP, which comprises a 10 MW gas-fired power generation and a 1 MW PV solar solution, will be supplied gas by the Shell Gas project.
Truly, there are better days ahead for the Oyo State economy and all of us here are playing a part in making history. Of course, we are not stopping here. We are seeking more investors in the energy sector to meet the energy deficit in the State, there is a ready market for them. We have significant interest in deploying additional generation capacity while also fortifying the distribution and metering infrastructure.
On this note, we will proceed to commission the first phase of the Oyo State Independent Power Project to the glory of God and for the benefit of the good people of Oyo State.
Thank you and God bless you.
Seyi Makinde
6 December 2024
Kudos to our dear Governor on this laudable project. More Success, More win in Jesus name Amen.
Great project
You tried, but been an Engr but U can achieve more than this if U wish. Oyo state and South West at large has Indegens who have technical know how at their disposal which can make any serious leader achieve more than him ever imagine. Same money/cost bigger project Capacity.
If you doubts put out another fresh 10MW IPP up and make discussions open like town Hall meeting provide all important details the public will need. Just wait and see
This is a laudable project if can be done to serviceability level during the Gov tenure and if the subsequent administration would imbibe his character of completing uncompleted project by different party since it is for the purpulace benefits and not made a political matter of discrimination. . . God bless Öyö State and the Gov.
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