The Federal Government has begun reviewing the $1.3 billion Zungeru Hydropower Project in Niger State over legal and operational challenges limiting its electricity generation to about 350 megawatts (MW), half of its installed capacity.
The Infrastructure Concession Regulatory Commission (ICRC) disclosed the development after a stakeholders’ meeting in Abuja involving the Ministries of Power and Water Resources and Sanitation, the Bureau of Public Enterprises (BPE), and Penstock Limited, the private concessionaire operating the facility.
The meeting focused on identifying the factors affecting the plant’s performance and developing solutions to improve electricity generation.
Located on the Kaduna River, the Zungeru plant has an installed capacity of 700MW across four generating units. It was developed to increase electricity supply to Nigeria’s national grid.
Speaking at the meeting, ICRC Director-General Jobson Oseodion Ewalefoh said the government could not allow strategic power projects operating under Public-Private Partnership (PPP) arrangements to perform below capacity.
He explained that the review was aimed at resolving challenges affecting the facility and ensuring that the country derives maximum benefits from its investment.
Ewalefoh stressed that the exercise was not intended to take over the concession agreement but to ensure that all parties fulfil their contractual obligations.
He added that the commission’s responsibilities include monitoring PPP agreements, ensuring value for money, promoting sustainability and guaranteeing effective service delivery.
The ICRC also announced plans to conduct similar compliance reviews of other power projects, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.
Findings from the reviews will be compiled into a report for submission to President Bola Ahmed Tinubu.
The initiative forms part of the Federal Government’s efforts to improve electricity supply by addressing inefficiencies in existing power infrastructure rather than relying solely on new generation projects.
The commission said the intervention aligns with the administration’s commitment to ensuring that public assets deliver their intended benefits to Nigerians.
At the conclusion of the Abuja meeting, stakeholders identified several legal and operational issues affecting the Zungeru project and agreed to reconvene to discuss possible solutions.
The ICRC said the ongoing process was expected to improve the plant’s performance and ensure that the substantial investment generates greater value for the country.
With the 700MW facility currently producing about 350MW, resolving the identified challenges could unlock additional electricity for the national grid. The planned reviews of other PPP power projects will also assess how effectively existing generation capacity can be translated into improved electricity supply.
