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UK PACT presents strategic roadmap to unlock Nigeria’s small hydropower potential – EnviroNews
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AP3 Advisory and Ratio Consulting, implementing partners of the United Kingdom’s Partnering for Accelerated Climate Transitions (UK PACT) Nigeria Energy Programme, on June 25, 2026, presented a strategic roadmap to unlock Nigeria’s vast small hydropower potential through private sector investment during a high-level ministerial briefing with the Minister of Power, Joseph Olasunkanmi Tegbe, at the Federal Ministry of Power Headquarters in Abuja.
The briefing, titled “Mobilising Private Sector Capital to Catalyse Small Run-of-River Hydropower at Scale for Rural Electrification and Industrialisation,” convened senior officials of the Federal Ministry of Power, the Rural Electrification Agency (REA), representatives of the British High Commission, development finance institutions, state governments, utilities and private-sector investors to discuss practical pathways for accelerating investment in Nigeria’s underutilised hydropower assets.
During the briefing, AP3 Advisory showcased how existing run-of-river infrastructure across Nigeria can be transformed into commercially viable renewable energy assets through brownfield small hydropower development without requiring significant Federal Government capital expenditure. The presentation highlighted Nigeria’s estimated 14GW of technically exploitable hydropower potential, more than 85 per cent of which remains untapped, despite decades of public investment in water infrastructure.
As the implementing partner for the UK PACT Nigeria Energy Programme’s small hydropower workstream, AP3 Advisory presented progress on three pilot projects located at NESCO Cascade (Plateau State), Ikere Gorge (Oyo State) and Ghari Dam (Kano State).
Together, these projects are intended to demonstrate how investor-ready project preparation, robust technical studies and strategic public-private collaboration can unlock scalable renewable energy infrastructure capable of driving rural electrification, productive economic activity and industrial growth.
Speaking during the briefing, Dr. Gori Olusina Daniel, Managing Partner of AP3 Advisory and UK PACT Programme Director, said the initiative extends well beyond three pilot projects.
“Our objective is not simply to deliver three projects. We are creating the policy frameworks, investment toolkits and institutional confidence required to unlock Nigeria’s wider small hydropower potential. By preparing bankable projects and engaging investors early, we are demonstrating how existing public infrastructure can attract private capital and deliver reliable electricity at scale.”
The programme has already completed extensive technical and commercial de-risking activities, including pre-feasibility studies, investor-grade financial modelling, environmental and social assessments, regulatory support and the development of a National Small Hydropower Asset Register identifying more than 32 priority brownfield sites with over 500MW of near-term development potential.
Representing the UK’s Foreign, Commonwealth and Development Office (FCDO), Dr. Paul Healey, Head of Private Sector and Green Growth at the British High Commission, reaffirmed the United Kingdom’s commitment to supporting Nigeria’s energy transition through sustainable private investment.
“The UK’s partnership with Nigeria’s power sector is longstanding and continues to evolve. This programme demonstrates how technical assistance can unlock significant private finance by creating value from underutilised public assets. It reflects our shared commitment to strengthening investment, expanding clean energy, and supporting sustainable economic growth.”
Minister Tegbe welcomed the initiative, describing small hydropower as an important component of Nigeria’s diversified energy future. He reaffirmed the Federal Government’s commitment to expanding electricity generation while encouraging solutions that combine commercial viability with measurable development impact.
“I am on board with this and you can count on my support. While we continue addressing transmission and distribution challenges, we must simultaneously expand generation capacity. Small hydropower offers practical, scalable opportunities that support industry, agriculture and communities, and I look forward to seeing these projects move from studies to implementation.”
The Minister also underscored the importance of attracting affordable international financing to improve project bankability and encouraged continued collaboration between government, development partners and the private sector to accelerate delivery.
Also speaking during the meeting, Dr. Owolabi Sunday, Director of Renewable Energy and Rural Development at the Federal Ministry of Power, acknowledged the programme’s contribution to strengthening project preparation and investment readiness.
“The UK PACT programme has become an important partner to the Ministry. Beyond supporting these pilot projects, it is helping us strengthen the institutional capacity required to attract investors, improve project preparation and create templates that can be replicated across many other hydropower sites in Nigeria.”
The briefing concluded with discussions on strategic policy actions required to accelerate nationwide deployment, including the development of Nigeria’s first National Small Hydropower Policy, strengthened regulatory coordination and continued collaboration to mobilise private investment into renewable energy infrastructure.
The UK PACT Nigeria Energy Programme continues to support the Federal Government in developing commercially viable renewable energy projects that improve energy access, strengthen infrastructure resilience and accelerate Nigeria’s transition towards a cleaner, more diversified electricity sector.