Abuja, Nigeria
The Nigerian Federal Government has taken a significant step toward boosting its clean energy capacity, signing a 30-year concession agreement for the development of the 6-megawatt (MW) Ikere Gorge Hydropower Project in Oyo State.
The agreement, signed on Wednesday in Abuja with private developer Quaint Energy, is part of a strategic plan to expand renewable energy generation and stimulate regional electricity markets.
Decades-Long Effort Culminates in Agreement
The ceremony was overseen by the Minister of Power, Adebayo Adelabu, who described the signing as the culmination of more than a decade of negotiations.
The Ikere Gorge project, situated on the Ogun River in Iseyin LGA, has a long history, having been conceived in the late 1970s as a multi-purpose scheme for power, irrigation, and water supply. Despite partial construction and equipment procurement in the 1980s, the power component had stalled until now.
“This event marks another important milestone in our collective journey toward achieving a sustainable, reliable, and affordable power supply across Nigeria,” Minister Adelabu stated.
The government’s plan also includes the development of the 2MW Omi-Kampe Hydropower Project in Kogi State, though the signing for this project was deferred to finalise contractual details.
Catalysts for Rural Economy
Minister Adelabu emphasised that the hydropower projects are intended to be more than just energy investments; they are viewed as catalysts for rural economic development.
- Community Impact: The fully developed plants are expected to deliver reliable electricity to surrounding communities, support agricultural processing zones, and stimulate rural industrialisation within Oyo and Kogi States.
- Private Sector Focus: The Minister stressed the government’s commitment to private sector-led growth, focusing on creating a stable regulatory environment and de-risking private investments through transparent processes.
Power Sector Reforms and Metering Drive
Mr. Adelabu also used the platform to highlight broader reforms within Nigeria’s power sector:
- Revenue Boost: Ongoing commercialisation efforts have reportedly boosted the power sector’s revenue by 70% in 2024, while simultaneously cutting government liabilities by ₦700 billion.
- Presidential Metering Initiative: The government has mobilised ₦700 billion from the Federation Accounts Allocation Committee to address the long-standing metering deficit. This initiative is complemented by the World Bank’s $500 million Distribution Sector Recovery Programme, which is expected to add 3.45 million new meters.
- Regional Integration: The Minister hailed a “historic milestone” in electricity grid operations—the first-ever synchronisation of the Nigerian grid with the West African Power Pool, linking all 14 member countries for over four hours.
The Chairman of Quaint Energy, Femi Adeyanju, assured the government that the company would deliver the Ikere Gorge project on schedule and in line with global standards.
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