As part of a new initiative to establish an off-grid electricity system, Ekiti State in South West Nigeria has granted operational licenses to three electricity distribution companies, four generation companies, and two mini-grid generation companies.
The State Governor Mr Biodun Oyebanji made this announcement on his official X handle on Thursday, outlining the state’s commitment to enhancing its energy independence.
With this new strategy, Ekiti State aims not only to meet its electricity needs but also to set a precedent for other Nigerian states seeking localized energy solutions. Governor Oyebanji emphasized that this shift represents Ekiti’s commitment to self-sufficiency and a sustainable, resilient power infrastructure for the state’s future.
Governor Oyebanji further shared that five meter asset providers also received licenses, as part of a larger goal to reach 130 MW of locally generated and distributed electricity. This demonstrates a shift toward reducing the state’s reliance on the national grid, which currently supplies only about 20-25 MW, far below Ekiti’s estimated energy need of 120 MW.
In total, 14 licenses were issued to private electricity investors to spur sustainable and locally managed power solutions within Ekiti. The initiative aligns with the recently enacted 2023 Electricity Law, which empowers states to generate and distribute energy to meet their specific local needs.
According to Oyebanji, these efforts will improve power generation, enhance distribution efficiency, and ensure reliable metering for residents. The move will enhance power generation, ensure efficient distribution, and provide reliable metering for our residents,” Oyebanji said.
He added that the current gap between Ekiti’s energy needs and its national grid supply underscores the urgency for this localized approach to power management and sustainability.
The 2023 Electricity Act, signed into law by President Bola Tinubu, was designed to decentralize Nigeria’s electricity generation and distribution, ending the national monopoly and allowing states to license local power providers.
This law enables states to support the establishment of mini-grids and local power plants, fostering energy security and market growth at the regional level.