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Home Frontier Markets

Oyo targets 500 MW energy generation by 2027

by Onome Amuge
August 1, 2025
in Frontier Markets, Nigeria Frontier Markets
Oyo targets 500 MW energy generation by 2027

Ben Eguzozie

 Oyo State, with a subnational GDP of $27.2 billion, ambitiously targets to generate 500 megawatts (MW) of energy by 2027 – the same year that incumbent governor Seyi Makinde will end his second term of office, according to Dahud Shangodoyin, the state commissioner for energy and mineral resources.

 In December 2024, Governor Makinde had said the entire state may not need to connect and be supplied electricity from the national grid, when the 500 MW target was met. Since then, the administration is putting in place the legal frameworks, policies and infrastructure to achieve the focus.

 Already, the state has enacted the Oyo State Electricity Regulation law (OSER), which has also brought about boost in the state’s energy mix – with projects such as the Hybrid Independent Power Project (HIPPP), ‘Light-up Oyo, SMART LED Solar Street Light project, and the provision of mini grids across the state.

 According to Shangodoyin, the state ministry of energy and mineral resources focused on institutional reforms and governance; promotion of private-public partnership; developing robust revenue models and developing policies for sustainable energy, all resulting in the reduction of energy deficit in the state.

 He said the proposed Ibadan Gas Distribution Project is well on course, with signing of a Memorandum of Understanding (MoU) between the Oyo government and Shell Nigeria Gas (SNG). The state has approached the Nigeria Mainstream Downstream Petroleum Regulatory Authority (NMDPRA) for licence for the gas project.

 Shangodoyin assured that the state will move to complete the project to further address energy deficit in the state, once it was able to secure the licence.

 He said his ministry’s impact on the energy sector is captured through the Light-up Oyo Project, which second phase covering 223.48km has been executed up to 75 percent. Additionally, mini-grids have been provided to scores of rural communities across the state, while the construction of the first phase of the Hybrid Independent Power Project, has helped in fully powering the state secretariat.

 Other achievements include the supply of solar power to about 21 Primary Healthcare Centres (PHCs) and provision and installation of transformers in many communities across the state, among others.

 Oyo ministry of energy and mineral resources was created in 2019 to drive energy security in the state, reducing energy poverty across the state. Part of the ministry’s goals is to make the state a destination for energy investment, as well as pursue objectives that align with five UN Sustainable Development Goals; SDG One, to reduce poverty; SDG Seven, affordable clean energy; SDG Eight, decent work and Economic  growth; SDG Nine, industry, innovation and infrastructure, and SDG Eleven, sustainable cities and communities.

 The state government completed its first phase of Independent Power Project in December 2024, and has been generating 5 MW of power, while the second phase will generate 6 MW.

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

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