The Federal Government, through the Rural Electrification Agency (REA), has performed the groundbreaking ceremony for a 17.7-megawatt interconnected mini-grid project in Ibadan, Oyo State, aimed at improving electricity reliability and stimulating economic activities in five communities.

The project, being developed by Paras Energy and Natural Resources Development Limited, will serve Bola, Jiboye, Ogo-Oluwa, Molade-Adelubi and Sooko-Elega communities within the Iwo Road axis of Ibadan.

Upon completion, the project is expected to provide a minimum of 20 hours of electricity supply daily to the beneficiary communities.

Speaking at the ceremony, the Minister of Power, Joseph Tegbe, said the initiative demonstrated the Federal Government’s commitment to increasing electricity generation, improving supply reliability and expanding access to power for households and businesses.

He said the government’s objective was not only to expand electricity infrastructure but also to ensure that additional generation capacity translated into economic opportunities for Nigerians.

“Our objective is clear: to increase the quantum of electricity available to Nigerians, improve the reliability of supply and ensure that electricity becomes an enabler of productivity, investment and economic growth. Projects such as this demonstrate how we are translating that commitment into infrastructure that directly serves communities and productive economic clusters,” Tegbe said.

The minister added that the project formed part of the government’s broader strategy of complementing improvements to the national grid with decentralised electricity solutions that bring power closer to areas of demand.

He said the approach was being pursued alongside interventions to strengthen electricity generation, transmission and distribution infrastructure across the country.

The Managing Director and Chief Executive Officer of REA, Dr Abba Aliyu, said the project reflected the scale of distributed energy investments being pursued under President Bola Tinubu’s Renewed Hope Agenda.

Aliyu said the agency was increasingly focused on deploying electricity generation capacity where it could deliver significant economic benefits, while leveraging private-sector investment and sustainable operating models.

“This groundbreaking is about more than 17.7 megawatts of new generation capacity. It is about what that capacity will enable. Reliable electricity means longer operating hours for businesses, lower dependence on expensive self-generation, increased productivity, new investment and ultimately more jobs and economic opportunities,” he said.

The project will also include the installation of 18 new transformers to strengthen electricity distribution within the beneficiary communities.

Aliyu disclosed that REA was advancing additional projects with a combined capacity of 17.7MW in Ibadan, targeting strategic institutions and economic centres, including the University College Hospital, the University of Ibadan and The Polytechnic, Ibadan.

He said the wider programme was intended to build clusters of reliable electricity generation around communities, public institutions and centres of economic activity.

The Olubadan of Ibadan, Oba Rashidi Adewolu Ladoja, commended the Federal Government for the intervention, saying improved electricity supply would benefit businesses, households and livelihoods in the communities.

He also appreciated President Tinubu for infrastructure projects being implemented across Oyo State and called for their timely completion.

The Managing Director of Paras Energy and Natural Resources Development Limited, Yashwant Kumar, reaffirmed the company’s commitment to delivering the project efficiently and to the required standards.

He said reliable electricity would have a significant impact on residents and businesses in the project area.

Governor Seyi Makinde of Oyo State who was represented by the Commissioner for Energy and Mineral Resources, Prof. Dahud Sangodoyin, lauded the federal and state agencies which collaborated for the project. He said: “If we develop our electricity, we will have more industries in Ibadan”.