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UK, Nigeria mobilise private investment for 154MW small hydropower projects – EnviroNews
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The United Kingdom and Nigerian government partners are stepping up efforts to mobilise private investment into small hydropower. Policymakers, financiers and project developers met in Abuja to advance three pilot projects aimed at improving electricity access and supporting economic growth.
The stakeholder and investor roundtable themed: “Mobilising Private Capital to Catalyse Small Run of River Hydropower at Scale for Rural Electrification and Industrialisation.”, held on Wednesday, October 28, at Onomo Allure in Abuja, under the UK Partnering for Accelerated Climate Transitions (UK PACT) Clean Energy Transition Run-of-River Small Hydropower programme, focused on moving projects in Oyo, Kano and Plateau states from technical preparation towards financial close.
Implemented by Africa PPP Advisory (AP3) and Ratio Consulting Ltd., the initiative has supported feasibility studies, dam safety assessments, environmental and social safeguards, energy audits, financial modelling and transaction structuring for the Ikere Gorge project in Oyo State, Ghari Dam in Kano State and the rehabilitation of the NESCO hydropower cascade in Plateau State.
British Deputy High Commissioner, Vicky Seymour, said the UK was working with Nigerian partners to attract private capital into renewable energy.
“The United Kingdom is really proud to work with Nigeria to advance a cleaner, more reliable, and more inclusive energy future,” she said. “Our note today is about moving from evidence to action together across the three pilot sites.”
She added that success should be measured by its impact on people’s lives, particularly in communities with limited access to reliable electricity.
Nigeria’s Minister of Power, Mr. Joseph Olasunkanmi Tegbe, represented by Mr. Martin Olajide, Special Adviser to the President on Power, said the Federal Government remained committed to an enabling environment for renewable energy investment. He noted that the Electricity Act 2023 had expanded opportunities for state electricity markets and private participation.
“Our task today is to advance these opportunities towards financial close, and I expect the deal rooms to resolve outstanding questions on hydrology, evacuation, power purchase agreements, and payment security,” Tegbe said. “The transactions should also consider community benefits, dam safety, and environmental protection.”
He highlighted a proposed integrated poultry project in Oyo State, designed to produce one million eggs daily, as an example of how reliable renewable power could support industry and agriculture. A hybrid hydropower and solar scheme could power feed mills, hatcheries and poultry facilities, while irrigation across 7,000 hectares could support maize and soybean production for animal feed.
Hybrid Power Offers Opportunity to Expand Generation
Dr. Gori Olusina Daniel, Managing Partner of AP3 and Programme Director of the UK PACT CET Run-of-River Small Hydropower Programme, said combining hydropower with solar could increase generation and improve reliability across seasons. “We are talking solar because a lot of these small hydro projects have the potential for hybridisation. So, where you might have, for instance, in the NESCO Cascade, the solar potential there is in the region of 30 megawatts, but when you hybridize it with solar, you can get it up to 100 megawatts and beyond. You can triple the capacity,” he said.
The NESCO system, established in 1929, comprises eight dams and eight power stations in Plateau State. Its 25.5 megawatts of installed capacity is operating below potential because of ageing equipment, and the rehabilitation programme targets about 40.25 megawatts.
At Ikere Gorge, which had remained dormant for decades, studies have identified hydropower potential of up to 14 megawatts, with co-located solar raising the hybrid system’s target to 100 megawatts. The project is being advanced with concessionaire Quaint Energy and the Oyo State and Federal Governments
Policy Framework and Investment Discussions
Representing the Rural Electrification Agency (REA), Mr. Jaafar Dikko said Nigeria’s small hydropower potential exceeds 3,500 megawatts, much of it untapped. He said existing dams could supply rural communities, waterworks and agro-processing facilities, and that the REA was ready to support viable projects through public-private partnerships and financing mechanisms.
A key highlight was the presentation of the zero draft of Nigeria’s National Small Hydropower Policy, alongside discussions on the regulatory framework under the Electricity Act 2023 and coordination with the World Bank’s SPIN master plan. Participants also reviewed the Small Hydropower Deployment Toolkit, intended to help state governments, developers and financiers replicate successful project-preparation approaches.
In a technical session, Dr. Mike Imafidor Senior Transactions Specialist, UK PACT RoR SHP and hydropower specialist, Emmanuel Katepa, stressed that investment decisions must rest on reliable hydrological data, clear power evacuation arrangements, bankable power purchase agreements and credible payment-security mechanisms.
The event closed with project-focused deal rooms: Quaint Energy and AP3 for Ikere Gorge, the Kano State Government and AP3 for Ghari Dam, and NESCO and AP3 for the Plateau cascade. Recognition awards were presented to the Plateau, Kano and Yobe state governments and the REA for their contributions to renewable energy and rural electrification.
With technical assessments, policy development and investor engagement advancing in parallel, the programme seeks to establish a replicable approach for turning Nigeria’s underused hydropower resources into investable projects.
