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FG Begins Construction of 17.7MW Mini-Grids in Oyo, Rules Out Tariff Hike

byStephen Abebor
October 15, 2026
in Energy
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FG Begins Construction of 17.7MW Mini-Grids in Oyo, Rules Out Tariff Hike
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The Federal Government has flagged off five interconnected mini-grid projects with a combined capacity of 17.7 megawatts (MW) in Oyo State, promising improved electricity supply to communities across five local government areas.

The Minister of Power, Joseph Tegbe, performed the groundbreaking ceremony in Ibadan on Thursday, October 15, 2026, on behalf of President Bola Tinubu.

The projects are expected to serve communities in Akinyele, Ido, Ibadan North, Egbeda and Lagelu local government areas, with a 17.74-megawatt-hour (MWh) Battery Energy Storage System (BESS) included to support electricity delivery.

The Guardian reported on October 15, 2026, that Tegbe announced the initiative during the ceremony, where he also dismissed reports of a planned electricity tariff increase, saying the government’s priority was to improve power supply.

The five projects comprise the Bola mini-grid in Akinyele, Jiboye in Ido, Molade-Adelubi in Ibadan North, Ogo Oluwa in Egbeda and Sooko-Elega in Lagelu.

The initiative involves the Rural Electrification Agency (REA), project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company (IBEDC).

The mini-grids are expected to improve electricity access for households and businesses, reduce dependence on petrol and diesel generators and support commercial activities in the beneficiary communities.

More reliable electricity could help small businesses reduce operating costs associated with self-generation, extend their operating hours and improve productivity. However, the scale of these benefits will depend on project completion, effective distribution and the reliability of the electricity delivered.

The battery storage system is intended to support the supply of electricity when generation fluctuates or demand changes. Its 17.74 MWh capacity measures the amount of energy it can store, rather than its instantaneous power output.

Tegbe also urged Nigerians to disregard reports suggesting that the Federal Government was planning another electricity tariff increase.

According to TVC News in its October 15, 2026 report, the minister said the administration was focused on improving electricity supply rather than increasing the financial burden on consumers.

The assurance comes as households and businesses continue to contend with electricity supply challenges and the cost of operating alternative power sources.

The mini-grid initiative forms part of efforts to expand electricity access through infrastructure designed to serve communities that need more reliable supply.

The Federal Government’s ability to translate the new projects into dependable electricity will be important to their economic impact, particularly for small businesses that depend on stable power to keep costs down and remain competitive.

Tags: Electricity TariffIBEDCJoseph TegbeMini-gridsNigeria ElectricityOyo StateParas EnergyPower SupplyREARenewable EnergyRural Electrification AgencyWorld Bank
Stephen Abebor

Stephen Abebor

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