Edo State Secures 10% Equity in 100MW Power Project, Signalling Strategic State-Led Investment Approach
The Edo State Government has successfully negotiated a 10 per cent equity stake in a proposed 100-megawatt (MW) power plant slated for development in Ologbo. Governor Monday Okpebholo announced the agreement, highlighting its potential to generate significant revenue for the state, foster job creation, and substantially improve electricity supply within the region.
The landmark deal was formalised during a meeting at the Government House in Benin City, where Governor Okpebholo received delegations led by Olusegun Alebiosu, Managing Director and Chief Executive Officer of First Bank of Nigeria Limited, and Di Xiaohui, Managing Director and Chief Executive Officer of CCETC. A statement issued by the governor’s Chief Press Secretary, Patrick Ebojele, on Wednesday, detailed that the state’s equity stake was secured in exchange for the provision of land and the establishment of an enabling business environment for the project.
Governor Okpebholo clarified that Edo State is not undertaking any direct financial investment in the power plant. Instead, the government insisted on becoming an equity partner, a strategic move beyond merely facilitating land access. “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,” the governor stated. He further emphasised the state’s position: “I also told them that we cannot 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.”
This equity arrangement is anticipated to yield multifaceted benefits for Edo State. Governor Okpebholo expressed optimism that the project will ensure improved electricity access, generate substantial revenue streams, and create vital employment opportunities for the state’s 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 remarked. The 100MW power plant is projected to commence operations by November.
Governor Okpebholo also articulated his administration’s policy of encouraging direct partnerships between investors and the state government, a strategy designed to safeguard public interest and enhance accountability. This approach contrasts with dealings involving private individuals, aiming for greater transparency and alignment with state objectives. Looking ahead, the government has outlined plans to establish additional power plants in Edo Central and Edo North senatorial districts, underscoring a broader commitment to enhancing electricity infrastructure across the entire state.
Representing First Bank, Olusegun Alebiosu affirmed the bank’s commitment to supporting investments that drive economic transformation in Edo State. He noted that CCETC, a key partner in the project, already operates a 15MW power plant within the state and is actively constructing the proposed 100MW facility in Ologbo. Alebiosu highlighted the project’s significance as a catalyst for 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,” he stated.
This development aligns with the broader trend of subnational governments leveraging the provisions of the amended Electricity Act 2023. The Act decentralised electricity generation, transmission, and distribution, empowering states to establish and regulate their own electricity markets. Consequently, numerous states are actively pursuing independent power projects to address electricity deficits, attract investment, and stimulate industrial growth, presenting new legal and commercial opportunities for stakeholders in the energy sector.
