Edo State Bags 10% Equity in Planned Ologbo 100MW Power Project

The Edo State Government has successfully negotiated a 10 percent equity share in a forthcoming 100-megawatt power plant slated for construction in Ologbo. Governor Monday Okpebholo announced this development in Benin City, emphasizing that this arrangement is set to boost state revenue, create employment opportunities, and enhance electricity provision across the state.

The Governor made this disclosure during a reception at the Government House for the Managing Director and Chief Executive Officer of First Bank of Nigeria Limited, Olusegun Alebiosu, and the Managing Director and Chief Executive Officer of CCETC, Di Xiaohui, along with their respective delegations. A statement released on Wednesday by Patrick Ebojele, the Governor’s Chief Press Secretary, indicated that the state secured the equity stake by offering land and establishing a conducive investment climate.

Governor Okpebholo clarified that while the state is not committing any direct financial capital to the project, it insisted on becoming an equity partner rather than merely a land provider. He stated, “Edo State does not have the money to invest in this power plant. But we have land, and we will provide security to ensure that your business thrives. I also told them that we can not just give them our land; we have to be part owners too. They agreed to consider 10 per cent equity. That is the agreement we are going to sign today.”

He further expressed his satisfaction with the deal, noting that it guarantees the state improved electricity supply, a share of the project's revenue, and job creation for its citizens. “I am happy with this development. One, we will now have light. Two, we will also have a stake in the project. Not just a stake, we will also be receiving revenue from it. Our own children will also be employed by them. To me, this is more than enough,” the Governor added.

The proposed 100MW power plant is projected to commence operations by November. Governor Okpebholo also highlighted his administration's strategic policy of encouraging investors to collaborate directly with the state government, rather than private individuals, to safeguard public interests and promote accountability. Additionally, he revealed plans to establish more power plants in the Edo Central and Edo North senatorial districts to further improve electricity access statewide.

Earlier, First Bank’s MD, Olusegun Alebiosu, reaffirmed the bank's dedication to backing investments that can catalyze economic transformation in Edo State. He noted that CCETC currently operates a 15MW power plant within the state and is undertaking the construction of the new 100MW facility in Ologbo, which aims to drive industrialization and economic growth. Alebiosu stated, “We know that CCETC has a 15-megawatt power plant in the state, and they are also building a 100-megawatt power plant as part of what we believe will be a strong economic development and transformation initiative for Edo State.”

This project aligns with a growing trend among subnational governments to utilize provisions of the amended Electricity Act 2023, which has decentralized electricity generation, transmission, and distribution, empowering states to establish and regulate their own electricity markets. Consequently, several states have embarked on independent power projects to enhance electricity supply, attract investments, and foster industrial expansion.