Edo secures 10% equity in proposed 100MW power project

The Edo State Government has secured a 10 per cent equity stake in a proposed 100-megawatt power plant expected to be built in Ologbo, with Governor Monday Okpebholo saying the arrangement will generate revenue for the state, create jobs and improve electricity supply.

The governor disclosed this in Benin City while receiving the Managing Director and Chief Executive Officer of First Bank of Nigeria Limited, Olusegun Alebiosu, the Managing Director and Chief Executive Officer of CCETC, Di Xiaohui, and their delegations at the Government House.

A statement by the governor’s Chief Press Secretary, Patrick Ebojele, on Wednesday, said the state negotiated the equity stake in exchange for providing land and creating an enabling environment for the investment.

According to Okpebholo, the state is not making any direct financial investment in the project but insisted on becoming an equity partner rather than merely providing land.

“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,” the governor said.

Okpebholo said the arrangement would ensure the state benefits from improved electricity supply, revenue generation and employment opportunities for residents.

“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,” he added.

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The governor said the proposed 100MW power plant is expected to become operational by November.

He added that his administration had adopted a policy of encouraging investors to partner directly with the state government rather than private individuals to safeguard public interest and improve accountability.

Okpebholo also said the government plans to establish additional power plants in Edo Central and Edo North senatorial districts to improve electricity supply across the state.

Speaking earlier, Alebiosu said First Bank was committed to supporting investments capable of driving economic transformation in Edo State.

He said CCETC already operates a 15MW power plant in the state and is constructing the proposed 100MW facility in Ologbo to boost industrialisation and economic development.

“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,” Alebiosu said.

The proposed project comes as subnational governments increasingly seek to leverage the provisions of the amended Electricity Act 2023, which decentralised electricity generation, transmission and distribution by allowing states to establish and regulate their own electricity markets.

Several states have since initiated independent power projects to improve electricity supply, attract investment and support industrial growth.