The United Kingdom and Nigerian governments seek private investment to develop and rehabilitate three small hydropower projects in Oyo, Kano and Plateau States, as both countries look to expand electricity generation and improve supply to underserved communities.
The projects, supported by the UK Partnering for Accelerated Climate Transitions (UK PACT), cover the Ikere Gorge in Oyo State, Ghari Dam in Kano State and the NESCO hydropower cascade in Plateau State.
According to a note, a case for the projects was presented to potential investors at a roundtable in Abuja, where policymakers, financiers and developers discussed moving the projects from technical preparation to financial close.
The programme, implemented by Africa PPP Advisory and Ratio Consulting, has supported feasibility studies, dam safety assessments, environmental and social safeguards, energy audits, financial modelling and transaction structuring to prepare the projects for investment.
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Vicky Seymour, British deputy high commissioner, said the UK was working with Nigerian partners to mobilise private capital for renewable energy development and move the projects from technical assessments to implementation.
Joseph Tegbe, Nigeria’s minister of Power, represented by Martin Olajide, special adviser to the president on power, said the federal government was committed to creating an enabling environment for renewable energy investment.
He said the Electricity Act 2023 had opened up opportunities for state electricity markets and expanded private sector participation in power generation and distribution.
Also, he noted that project development must also consider community benefits, dam safety and environmental protection to ensure long-term sustainability.
The proposed projects also highlight the potential to combine hydropower with solar energy to improve generation capacity and reliability across seasons.
On his part, Gori Daniel, managing partner of Africa PPP Advisory and programme director of the UK PACT Clean Energy Transition Run-of-River Small Hydropower Programme, said integrating solar power with hydropower could significantly increase output.
He cited the NESCO hydropower cascade in Plateau State, where solar integration could raise the system’s potential capacity from about 30 megawatts to 100 megawatts or more.
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Established in 1929, the NESCO system comprises eight dams and eight power stations, with an installed capacity of 25.5 megawatts. Ageing equipment has constrained its performance, prompting a rehabilitation programme targeting an increase in capacity to about 40.25 megawatts.
At Ikere Gorge in Oyo State, which has remained dormant for decades, technical studies have identified hydropower potential of up to 14 megawatts. A proposed hybrid development combining hydropower and solar has a target capacity of 100 megawatts.
The project is being advanced with Quaint Energy as concessionaire, alongside the Oyo State and federal governments.
Nigeria has more than 3,500 megawatts of small hydropower potential, much of which remains untapped, according to Jaafar Dikko, representing the Rural Electrification Agency.
He said existing dams could support electricity supply to rural communities, waterworks and agro-processing facilities, adding that the agency was prepared to support viable projects through public-private partnerships and financing arrangements.
The roundtable featured the presentation of the zero draft of Nigeria’s National Small Hydropower Policy, which is expected to provide a framework for developing the sector and attracting investment.
Participants also discussed regulatory arrangements under the Electricity Act 2023, coordination with the World Bank’s SPIN master plan and a Small Hydropower Deployment Toolkit intended to guide state governments, developers and financiers.


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