The Federal Government has launched a review of the $1.3 billion Zungeru Hydropower Project in Niger State after the 700-megawatt plant began operating at only about half of its installed capacity.
The Infrastructure Concession Regulatory Commission (ICRC) said it had intensified oversight of the facility, which currently generates roughly 350MW.
The review is aimed at resolving legal and operational challenges limiting the plant’s performance and unlocking more electricity for the national grid.
The ICRC disclosed this after a stakeholders’ meeting in Abuja involving the Federal Ministries of Power and Water Resources and Sanitation, the Bureau of Public Enterprises (BPE) and Penstock Limited, the private concessionaire operating the project.
ICRC Director-General Jobson Oseodion Ewalefoh said the government could not allow strategic power assets operating under Public-Private Partnership (PPP) arrangements to remain below capacity.
He explained that the commission’s intervention was focused on ensuring compliance with the concession agreement rather than taking over the project.
“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results,” Ewalefoh said.
Located on the Kaduna River, the Zungeru project has four generating units and was developed at an estimated cost of $1.3 billion.
The ICRC said the plant is a strategic component of Nigeria’s power infrastructure, particularly as the country continues to face electricity supply challenges despite having significant installed generation capacity.
Stakeholders identified several legal and operational issues affecting the project and agreed to continue discussions on possible solutions.
The commission said the Zungeru review would be followed by similar compliance reviews of other PPP power projects, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.
The findings will be compiled into a report for submission to President Bola Ahmed Tinubu.
The initiative is part of the Federal Government’s broader push to improve electricity supply by getting more output from existing infrastructure instead of relying solely on new generation projects.
The ICRC said the reviews would focus on sustainability, value for money, service delivery and ensuring that major public investments generate greater benefits for Nigerians
