Nigeria Signs 30-Year Hydropower Deal to Expand Rural Electricity Access

The Federal Government has entered into 30-year concession agreements with Quaint Energy for the development of two hydropower projects: the 6MW Ikere Gorge Hydropower Project in Oyo State and the 2MW Omi-Kampe Hydropower Project in Kogi State, totaling 8MW.

At the signing ceremony, Minister of Power Chief Adebayo Adelabu described the projects as strategic efforts to expand energy access, boost local productivity, and drive rural economic transformation. He emphasized that the initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda and reflects the government’s commitment to power sector reform and renewable energy development.

Adelabu highlighted the government’s shift toward an enabling role—fostering regulatory stability, policy consistency, and investment de-risking to attract private sector participation. He noted that once operational, the hydropower plants will provide reliable electricity to support agricultural processing zones, small industries, and social infrastructure in the host communities.

He praised Quaint Energy for its commitment to global standards and acknowledged the Infrastructure Concession Regulatory Commission and other stakeholders for ensuring compliance with the national Public–Private Partnership framework.

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The Minister also outlined broader sector reforms, including the decentralization of the electricity market under the Electricity Act 2023, which has enabled 15 states to establish their own power markets. He mentioned the development of a new National Integrated Electricity Policy—the first in 24 years—and over $2 billion in new investments.

According to Adelabu, the power sector recorded a 70 percent revenue increase in 2024, while government liabilities were reduced by ₦700 billion. He also announced the first-ever synchronization of Nigeria’s grid with the West African Power Pool, connecting all 14 member countries. Installed capacity has increased from 13GW to 14GW, with a record peak generation of 5,801.44MW and daily energy output of 128,370.75MWh achieved on March 4, 2025.

To address the metering gap, the government has mobilized ₦700 billion from FAAC and $500 million from the World Bank’s DISREP fund through the Presidential Metering Initiative, which aims to deliver 3.45 million meters nationwide.

Adelabu reaffirmed the government’s commitment to a private sector-led energy transition and encouraged investors to take advantage of Nigeria’s evolving electricity market and improving policy environment. He described the concession as a symbol of collaborative progress between the public and private sectors.

Femi Adeyanju, Chairman of Quaint Energy, expressed gratitude for the opportunity to contribute to Nigeria’s energy development. He noted that the agreements—eight years in the making—will also enhance water supply for irrigation in both host states.