FG rules out tariff hike, flags off 17.7MW Oyo mini-grids

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By Abubakar Yunusa

 

The Federal Government has ruled out an electricity tariff increase, 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 in Ibadan during the groundbreaking ceremony for the projects, which are expected to improve electricity supply to communities across five local government areas.

The beneficiary areas are Akinyele, Ido, Ibadan North, Egbeda and Lagelu.

Tegbe urged Nigerians to disregard reports of an impending tariff increase, insisting that the government’s priority was to provide reliable electricity rather than raise charges.

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” he said.

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The projects comprise the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega interconnected mini-grids, supported by a 17.74-megawatt-hour battery energy storage system.

The minister said the initiative was part of efforts to expand electricity access, reduce dependence on petrol and diesel generators, and support businesses in the beneficiary communities.

He added that improved power supply would enable businesses to extend their operating hours, attract investment and create employment opportunities.

Tegbe identified three proposed energy corridors as priorities for the government’s electricity expansion drive. They are the Lagos-Ogun corridor, the Abuja-Kaduna-Kano corridor and the Benin-Enugu-Port Harcourt corridor.

He also disclosed plans to strengthen the national grid across the eastern and western corridors, with strategic generation and transmission locations including Funtua, Kainji, Gwagwalada, Gombe, Makurdi, Ajaokuta, Ikot Ekpene, Benin and Egbin.

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According to him, the Oyo projects reflect the Federal Government’s commitment to expanding electricity access under President Bola Tinubu’s Renewed Hope Agenda.

He said similar interventions supported by the Rural Electrification Agency had been implemented in Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.

The minister commended the Rural Electrification Agency, Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company for their roles in the projects.

He also acknowledged the contributions of the Oyo State Government, traditional rulers, community leaders and host communities to the initiative.

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

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