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Nigeria targets investment in 154MW small hydropower projects to boost rural electrification – EnviroNews
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Africa PPP Advisory (AP3) and the UK Partnering for Accelerated Climate Transitions (UK PACT) programme will on Wednesday, October 28, 2026, bring investors and other stakeholders together in Abuja to mobilise private capital for small hydropower development in Nigeria.
The stakeholder and investor roundtable, themed “Mobilising Private Capital to Catalyse Small Run of River Hydropower at Scale for Rural Electrification and Industrialisation,” will showcase three pilot projects in Oyo, Kano and Plateau states with a combined potential capacity of approximately 154 megawatts (MW).
The initiative seeks to attract financing for small run-of-river hydropower projects as part of efforts to expand electricity access, support rural economic development and strengthen power supply to industries and businesses.
The Minister of Power, Mr. Joseph Tegbe, the governors of Oyo, Kano and Plateau states, representatives of the British High Commission and the Rural Electrification Agency (REA) are expected to address the event.
The investor panel is expected to include representatives of the United Nations Industrial Development Organisation (UNIDO), InfraCredit, British International Investment (BII), ARM Harith and the European Bank for Reconstruction and Development (EBRD).
According to the organisers, the roundtable will present evidence from project preparation activities and provide an opportunity for financiers, engineering, procurement and construction (EPC) contractors, regulators and development partners to assess the projects’ investment potential.
The three projects demonstrate different approaches to developing Nigeria’s small hydropower resources, including hybrid renewable energy generation, embedded power supply and the rehabilitation of existing infrastructure.
At Ikere Gorge in Oyo State, the proposed development combines hydropower with solar energy at a federal dam under a concession awarded to Quaint Energy in 2025.
Preliminary studies indicate that the project could deliver a combined capacity of up to 100MW, incorporating an upgrade of the dam’s original 6.6MW hydropower design alongside a co-located solar power plant.
The project is described as the first brownfield hybrid concession under the Electricity Act 2023. Transaction structuring is expected to progress towards financial close by the second quarter of 2027.
In Kano State, the proposed 3.6MW Ghari Dam hydropower plant is designed to supply electricity to a water treatment plant, agro-processing businesses and surrounding rural communities.
Approximately 1,000 households are expected to gain access to electricity for the first time through the project.
The Rural Electrification Agency’s Minimum Subsidy Tender pathway for the project has received endorsement, while UNIDO has expressed interest in funding part of the capital cost.
The third project, the NESCO Cascade hydropower system in Plateau State, represents an opportunity to rehabilitate ageing infrastructure and recover electricity generation capacity.
Dating back to 1929, the system is described as Nigeria’s oldest operating hydropower installation. Although it has an installed capacity of 25.5MW, it operates at less than half that capacity because of ageing equipment.
The system serves 10,124 customers, including 253 industrial and mining companies, highlighting its importance to productive economic activities in the state.
The first phase of the proposed rehabilitation, located at Kurra and with a capacity of approximately 11.5MW, is being structured as a standalone transaction, with EBRD engaged in the process.
Together, the three projects are expected to demonstrate how private investment can support the development of new renewable energy capacity, improve the performance of existing hydropower facilities and expand electricity access to underserved communities.
The roundtable builds on technical and institutional work supported by UK PACT, including feasibility studies, dam safety assessments, energy and infrastructure audits, preliminary environmental and social impact assessments, and financial structuring.
The programme has also conducted five validation workshops involving more than 200 stakeholders.
Other outputs include a zero draft of a national Small Hydropower Policy, regulatory guidance on sub-national licensing under the Electricity Act 2023, and a Small Hydropower Deployment Toolkit.
The organisers expect the Abuja meeting to generate documented expressions of investor interest and follow-up actions for each of the three projects.
The event will also formally open consultations on the proposed national policy and publicly launch the deployment toolkit and regulatory guidance.
Additional expected outcomes include the development of a screened pipeline of future small hydropower projects assessed with investors, as well as the publication of an event report and communiqué.
Speaking ahead of the roundtable, Dr Gori Olusina Daniel, Managing Partner of AP3, said Nigeria had significant opportunities to harness small hydropower to expand electricity access and support productive economic activities.
“The priority now is to translate that potential into projects investors can confidently finance and implement,” he said.
Similarly, Dr Tobi Oluwatola, Project Lead for the UK PACT run-of-river small hydropower programme, stressed the importance of effective project preparation and investor confidence in creating an enabling environment for renewable energy investments.
“The move from renewable energy potential to real investment depends on the quality of project preparation and investor confidence in the enabling environment,” Oluwatola said.
He added that the roundtable would place the projects before financiers to identify outstanding requirements for achieving financial close.
The initiative comes amid efforts to expand Nigeria’s electricity supply and mobilise private investment in renewable energy infrastructure. By addressing project preparation, financing and regulatory challenges, the organisers hope to establish a pipeline of bankable small hydropower projects capable of supporting rural electrification, agricultural processing and industrial development.