FG to raise Niger power plant output to 700MW

DG ICRC Dr Jobson Oseodion Ewalefoh (m), Permanent Secretary, Ministry of Power (r) and Director, PPP, Ministry of Water Resources during an emergency meeting at the instance of the ICRC to review and optimise the 700mw Zungeru Hydropower Project. Credit: ICRC

The Federal Government has begun a regulatory review of the $1.3bn Zungeru Hydropower Project in Niger State as the 700-megawatt plant currently supplies about half of its installed capacity to the national grid.

The Infrastructure Concession Regulatory Commission said it had stepped up oversight of the project to identify and resolve legal and operational issues limiting the performance of the plant, which is being operated under a Public-Private Partnership arrangement.

The commission disclosed this after convening a stakeholders’ meeting in Abuja involving the Federal Ministry of Power, the Federal Ministry of Water Resources and Sanitation, the Bureau of Public Enterprises and Penstock Limited, the concessionaire operating the project.

The meeting was part of efforts to ensure that the plant delivers more electricity to the national grid at a time the federal government is seeking to increase power supply and address persistent electricity shortages across the country.

The statement signed by the Acting Head, Media and Publicity, Ifeanyi Nwoko read, “The Infrastructure Concession Regulatory Commission has stepped up its regulatory oversight on the $1.3bn, 700-megawatt Zungeru Hydropower Project in a bid to optimise the performance of the plant, which is operated under a Public-Private Partnership arrangement and currently generating about 350 megawatts to the National Grid.”

Speaking at the meeting, the Director-General of the ICRC, Jobson Oseodion Ewalefoh, said the government could not afford to allow strategic PPP power assets to operate below their potential.

“President Bola Ahmed Tinubu’s promise to Nigerians that he will solve the power problem is not words for the sake of it. It is a statement he meant, and he has charged all of us to support him by playing our roles to deliver on this promise,” he said.

Ewalefoh said the meeting was convened specifically to identify the factors preventing Zungeru from operating optimally and determine how they could be addressed.

“With the administration earnestly working to resolve the country’s power challenges, PPP assets such as Zungeru could not be allowed to operate below capacity,” he said.

The Zungeru Hydropower Project, located on the Kaduna River in Niger State, is one of Nigeria’s major hydropower investments.

It has an installed capacity of 700MW and was developed at an estimated cost of $1.3bn to strengthen electricity generation and improve the stability of the national grid.

The project comprises four generating units and was designed to provide substantial additional electricity to the grid. Its performance is therefore significant to efforts to increase Nigeria’s available generation capacity, particularly as the country continues to grapple with inadequate power supply despite having substantial installed generation assets.

Under the PPP arrangement, the government retains its role as grantor while the private concessionaire is responsible for operating the asset in accordance with the terms of the concession agreement.

The ICRC said its intervention was not aimed at taking over the agreement but at ensuring that both parties complied with their obligations.

Ewalefoh explained that the ICRC was established under the ICRC Act 2005 to regulate PPP arrangements and monitor compliance with concession agreements.

“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results. In PPP, risks are shared, and no party is doing the other a favour. Our duty is to ensure sustainability, return on investment is achieved, services are delivered, and value for money is secured in the interest of the Nigerian people,” he said.

Section 20 of the ICRC Act empowers the commission to take custody of concession agreements, monitor compliance with their terms, ensure their efficient execution and enforce compliance with the law.

The DG said the commission’s intervention would extend beyond Zungeru, with similar compliance reviews planned for other power plants operated under PPP arrangements.

He listed Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila among the projects that would be subjected to the review.

According to him, the findings from the various reviews would be compiled into a report for submission to President Tinubu.

The move comes against the backdrop of the Federal Government’s renewed focus on improving electricity supply by extracting greater output from existing infrastructure, rather than relying solely on new generation projects.

In his 2026 Democracy Day address, President Tinubu said, “Electricity is a democratic dividend we owe every Nigerian.”

The ICRC said the statement underscored the importance of ensuring that public assets and PPP investments deliver the services for which they were established.

Ewalefoh said the commission would work with the Ministry of Power and other stakeholders to ensure that PPP power projects operate efficiently.

He added that the ICRC would continue reviewing existing PPP arrangements because improved efficiency was one of the main reasons government assets were transferred to private operators.

“Efficiency is a key reason government assets are handed over to the private sector, and the Commission must ensure that efficiency is achieved through regulatory monitoring and compliance,” he said.

At the end of the Abuja meeting, the stakeholders itemised the legal and operational issues affecting the Zungeru project and agreed on a date to reconvene and continue discussions.

The commission said the process would culminate in measures aimed at improving the performance of the plant and ensuring that the investment delivers greater value to Nigerians.