The Oyo State Government has terminated its ₦8.2 billion contract for the 11-megawatt Independent Power Project (IPP) managed by Elektron Energy, citing persistent underperformance and eventual shutdown of the plant.
The State Commissioner for Energy and Mineral Resources, Professor Dahud Kehinde Shangodoyin, confirmed the development during a media briefing in Ibadan.
Professor Shangodoyin explained that upon assuming office in May, a technical assessment revealed that the first phase of the project—expected to supply 5MW—was generating only about 2.6MW, out of which the state was receiving approximately 1.5MW.
He added that despite several meetings and a two-month grace period granted to the private operator to enhance output and extend power supply to nearby communities, no meaningful progress was recorded. By July 2025, the operators had shut down the plant, forcing the government to revoke the agreement.
Following the termination, the state government has shifted attention to a new 12-megawatt power project, which is expected to take off within the next four months.
Professor Shangodoyin reaffirmed the government’s commitment to providing sustainable energy solutions, stressing that the new project aligns with Oyo State’s broader development agenda.