The Federal Government has commenced five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts in Oyo State, while ruling out plans to increase electricity tariffs.

The Minister of Power, Joseph Tegbe, announced the projects at their groundbreaking ceremony, describing the initiative as part of efforts to expand electricity access, improve power reliability and support economic activities in underserved communities.

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The projects are located in Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

They comprise the Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega interconnected mini-grids.

The initiative is supported by a 17.74-megawatt battery energy storage system designed to help stabilise electricity supply and improve reliability for beneficiary communities.

According to a statement issued on Thursday, the minister said the projects were expected to improve electricity supply to households and businesses, extend operating hours and create opportunities for investment and job creation.

“The initiative is expected to improve electricity supply to homes and businesses, reduce dependence on generators, extend working hours and create a more favourable environment for investment and job creation,” the statement said.

Tegbe said the projects aligned with President Bola Tinubu’s Renewed Hope Agenda and the Federal Government’s broader commitment to expanding access to reliable electricity.

He stressed the importance of collaboration among government agencies, private companies and development partners in addressing Nigeria’s persistent electricity challenges.

The minister acknowledged the contributions of the Rural Electrification Agency, Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company to the initiative.

He also commended the Oyo State Government, traditional rulers, community leaders and residents of the host communities for their cooperation.

Tegbe specifically recognised the support of the Olubadan of Ibadanland in facilitating the projects.

The minister noted that similar interventions supported by the Rural Electrification Agency had been implemented in communities across Kwara, Niger, Nasarawa, Plateau, Adamawa and Kaduna states.

Addressing concerns about a possible increase in electricity tariffs, Tegbe dismissed reports suggesting that the Federal Government planned to raise electricity rates and urged Nigerians to disregard them.

He said the government’s priority was to improve electricity supply and work towards achieving round-the-clock power rather than announce a tariff increase.

The clarification comes amid continuing public concern over electricity affordability, supply reliability and the cost of operating businesses in Nigeria.

Mini-grids and battery storage systems are designed to support electricity delivery, particularly in communities where conventional grid supply may be inadequate or unreliable.

Their effectiveness will depend on project completion, operational performance, maintenance and the ability to provide consistent power to consumers.

Tegbe also outlined three proposed energy corridors under the Federal Government’s broader plan to improve electricity availability across the country.

The proposed corridors are Lagos-Ogun, Abuja-Kaduna-Kano, and Benin-Enugu-Port Harcourt.

The projects are part of wider efforts to strengthen electricity infrastructure and improve access for households, commercial establishments and industries.

For communities in Oyo State, the five mini-grids are expected to provide additional electricity capacity, reduce reliance on petrol and diesel generators and support local economic activities.