Pivotal role of Power Infrastructure in Ogun Light-Up Project

Ogun State government under Governor Dapo Abiodun is on the verge of breaking a new ground in power infrastructure. Leveraging Electricity Act 2023 recently signed into law by President Bola Ahmed Tinubu, the administration has concluded an arrangement to launch an Independent Power Plan that will guarantee a 24-hour electricity supply to most parts of Abeokuta, the state capital. Barring any sudden change of arrangement, the commissioning ceremony will be held in eight weeks.

The 30 Megawatts power plant located in Onijanganjangan, near Ewekoro, is the first phase of the Ogun State Light-Up Project, which will eventually cascade into a bigger capacity to supply power to individuals and industries.

The first phase of the power plant would provide constant electricity to government institutions like offices, health facilities, government quarters, police stations, local government offices, and higher institutions. Later expansion of its capacity will enable private individuals and industries to enjoy a reliable power supply.

A reliable power supply is the engine room of industrial transformation. Regrettably, the incessant collapse of the national grid has made it impossible for manufacturing industries, small and medium-scale businesses to perform up to their maximum capacity, making it imperative for states to seek alternative sources of electricity supply. As such, stakeholders have realised that the current system is no longer sustainable.

Accordingly, in June 2023, President Tinubu signed the new Electricity Act into law to end Nigeria’s long-standing battle with insufficient electricity.

The Act empowers the states to develop legislation to create local markets for the generation and transmission of electricity to all areas within their boundaries. This is to enhance affordable and sustainable electric power to all through a decentralization policy that gives states control of electricity generation, transmission, and distribution within their jurisdictions.

Therefore, the Abiodun administration’s initiative to partner with the private sector in power generation aligns with the new policy decentralization policy of the Federal Government. Under the Act, States are empowered to issue licences to private investors who in turn would be permitted to set-up and operate mini-grids and power plants within the State.

The importance of regular power supply to the growth of the state’s economy cannot be over-emphasized. A constant energy supply is critical for industries because it enables uninterrupted production, maintains operational efficiency, prevents costly downtime safeguards product quality, and ultimately contributes to a company’s overall productivity and competitiveness in the market.

Without a reliable energy source, manufacturing processes can be significantly disrupted, leading to economic losses and potential damage to equipment.

Unplanned downtime due to power outages can result in significant financial losses, including lost production, labour costs, and potential equipment damage. Companies with reliable energy access can maintain production levels even during peak demand periods, giving them an edge over competitors.

To underscore the administration’s commitment to sustainable industrial growth, the. Governor has taken the bull by the horns by building the first historic Independent Power Plant to end years of lamentation over epileptic power supply to homes, offices, institutions, and industries.

Governor Abiodun, while assuring the populace of 24-hour uninterrupted electricity to most parts of Abeokuta, the state capital, said the commissioning ceremony would be held in about eight weeks’ time.

He stated this after inspecting the 30 Megawatts power plant located in Onijanganjangan, near Ewekoro on Monday, February 17, 2025, noting that the project, which is in collaboration with private sector partners, is the first phase of the Ogun State Light-Up Project.

According to him, the project aligns with his promise to provide uninterrupted power supply to major cities and towns across the state.

He said: “What we are doing today is to witness the first phase of the implementation of our Ogun State Light-Up Project. The first phase of this project is the 30 Megawatts of power generation that will take care of Abeokuta.

“Abeokuta Metropolis will require more than 30 Megawatts, but this is the first phase of the planned 100 Megawatts power generation capacity. I have gone around and have taken note of the progress of work so far.

“I have seen the control room, I have seen the turbines, and I have seen what will be responsible for ensuring that the gas is compressed. We have seen the gas pipelines that will be completed in three to six weeks. The gas compressor is there, and there is a diesel tank as well.

“I am quite excited, and I am sure that by the grace of God, in the next eight weeks, you will be here with me to commission this plant to the glory of God and for the use of those who live in Abeokuta.

“I can assure you that once this has been achieved, though we may not be able to supply power to the whole of Abeokuta, but substantial parts of the city will now enjoy 24 hours of uninterrupted power supply, and that will be unprecedented in the history of Ogun State.”

Abiodun, who was impressed with the high quality of work done at the site, observed that the plant, apart from using compressed gas as its main fuel, would also make use of diesel as a backup in case of disruption in the supply of gas.

“We believe that between two to three weeks, we will begin soft commissioning using diesel while the gas pipelines are being extended to this place. We estimate that between six to eight weeks, the first phase of this power plant will be completed and ready for commissioning,” the governor assured.

The power plant, the governor emphasized, would provide constant electricity to government institutions like offices, health facilities, government quarters, police stations, local government offices, and higher institutions, and would eventually cascade to private individuals and industries when the capacity is increased.

He explained the state’s decision to go into power generation, distribution, and transmission was due to the removal of the bureaucratic bottleneck which placed the total control of the sector in the exclusive list, assuring that similar plants would be built in Sagamu, Ijebu-Ode, and Ota.

For the legitimacy of the process, the Governor stated that the Ogun State House of Assembly had passed into law the setting up of the Ogun State Electricity Regulatory Commission to oversee all the activities of the power sector in Ogun State. The agency’s mandate is to provide oversight to anyone who wants to go into the power business in the state.

The Project Manager, Mr. Selvin Leo, said the project was 90 percent completed, assuring that with the availability of needed materials, equipment, and commitment from the workers, the job would be completed in record time.

With the current state of the power sector, independent power generation has become imperative in the face of the dwindling capacity of the Generating Companies (Gencos) to meet the nation’s energy requirements. Currently, Nigeria’s power generation is managed by generation companies, independent power providers, and Niger Delta Holding Company.

As of February 17, 2025, the peak generation by all of them was 5,362 megawatts (MW), while the lowest was 4,170.19 MW. There is no gainsaying that this figure is grossly inadequate for a country of over 200 million people with a strong desire for industrial transformation.

Despite privatization and distribution policy of successive administrations dating back to 2013, the power sector remains stalled by many challenges. To date, the Federal Government has continued to provide financial bailouts for the sector without commensurate results due to a lack of investment attraction and poor service delivery.

The annual subsidy required to stabilize the sector has been put at NGN 3.3 trillion ($2.6 billion), well above the NGN 450 billion allocated in the 2024 budget.

Yet, the Power Minister projects further significant support for the power sector in 2025, including plans to invest heavily in transmission infrastructure upgrades, aiming to improve electricity supply through initiatives like the Power Sector Recovery Operation (PSRO-AF) programme, bolstered by a $1 billion support from the African Development Bank (AfDB).

Notwithstanding the humongous amount pumped into the sector, millions of Nigerians lack constant electricity supplies while many, especially in rural areas, are disconnected from the grid. Worse still, the country’s target of generating 6,000 MW by the end of 2024 remained a mirage.

Thus, while the effort to improve generation and distribution continues the inability of generating and distribution companies to deliver a functioning power sector has heightened clamor from state governors, forcing the Federal Government to devolve regulatory powers. Devolution Act aims to increase the opportunities for efficiency and reform.

Though many states are still grappling with the challenges of implementation due to the limitation of financial resources, Ogun State has taken the bull by the horns, partnering with competent private investors to pool resources together for power generation and distribution.

Not only that, the state assembly has also played its part by enacting laws governing independent electricity generation and marketing. For Ogun State as the leading industrial hub in Nigeria and the West African sub-region, evolving an independent power generation and transmission is the only pathway to sustaining its competitive advantage.

Ogbonnikan writes from Abeokuta, Ogun State