By Emmanuella Opara | November 4th 2026
KEY POINTS
- Nigeria and the UK are seeking private investors for three small hydropower projects in Oyo, Kano and Plateau states.
- The projects include Ikere Gorge, Ghari Dam and the NESCO hydropower cascade.
- Rehabilitation and solar integration could raise NESCO’s generation capacity to 100 megawatts or more.
- Nigeria has an estimated 3,500 megawatts of small hydropower potential, much of which remains untapped.
- The initiative is also expected to support the development of a national policy for small hydropower.
MAIN STORY
The Nigerian and United Kingdom governments are seeking private sector investment to develop and rehabilitate three small hydropower projects across the country as part of efforts to expand electricity generation and improve access to power in underserved communities.
The projects, located in Oyo, Kano and Plateau states, are Ikere Gorge, Ghari Dam and the NESCO hydropower cascade. Their development is being supported through the UK’s Partnering for Accelerated Climate Transitions programme.
The initiative was discussed at an investor roundtable in Abuja, where government officials, financiers and project developers examined financing options and strategies for moving the projects from technical preparation to financial close.
Implemented by Africa PPP Advisory and Ratio Consulting, the programme has undertaken feasibility studies, dam safety assessments, environmental and social safeguards, energy audits, financial modelling and transaction structuring to prepare the projects for investment.
British Deputy High Commissioner, Vicky Seymour, said the partnership was aimed at attracting private capital into renewable energy development and advancing the projects towards implementation.
Nigeria’s Minister of Power, Joseph Olasunkanmi Tegbe, represented by the Special Adviser to the President on Power, Martin Olajide, said the Federal Government was committed to creating an investment-friendly environment for renewable energy projects.
He noted that the Electricity Act 2023 had expanded opportunities for state electricity markets and increased private sector participation in power generation and distribution.
However, he stressed the need for the projects to incorporate community benefits, dam safety and environmental protection to ensure their sustainability.
One of the projects with significant expansion potential is the NESCO hydropower cascade in Plateau State. The system, established in 1929, consists of eight dams and eight power stations, with an installed capacity of 25.5 megawatts.
Ageing equipment has affected its performance, but the rehabilitation programme is targeting an increase in capacity to approximately 40.25 megawatts.
According to the Managing Partner of Africa PPP Advisory and Programme Director of the UK PACT Clean Energy Transition Run-of-River Small Hydropower Programme, Dr Gori Olusina Daniel, integrating solar power with hydropower could further increase generation capacity and improve electricity reliability across seasons.
He said solar integration could raise the NESCO system’s potential capacity from about 30 megawatts to 100 megawatts or more.
At Ikere Gorge in Oyo State, which has remained inactive for decades, technical assessments have identified hydropower potential of up to 14 megawatts. The proposed hybrid development, which includes solar power, has a target capacity of 100 megawatts.
The project is being advanced in partnership with concessionaire Quaint Energy, the Oyo State Government and the Federal Government.
Meanwhile, the Rural Electrification Agency said Nigeria had more than 3,500 megawatts of small hydropower potential, with a substantial portion yet to be developed.
Representing the agency, Jaafar Dikko said existing dams could be used to supply electricity to rural communities, waterworks and agro-processing facilities.
He added that the agency was prepared to support commercially viable projects through public-private partnerships and financing arrangements.
The investor roundtable also featured the presentation of the zero draft of Nigeria’s National Small Hydropower Policy, which is expected to establish a framework for developing the sector and attracting investment.
Participants also considered regulatory provisions 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.
THE ISSUES
Nigeria’s small hydropower resources remain largely underdeveloped despite the country’s estimated potential of more than 3,500 megawatts.
The proposed projects illustrate the opportunities available through the rehabilitation of existing infrastructure rather than relying entirely on new power installations.
However, moving them from technical assessments to actual electricity generation will depend on attracting investors, securing financing and addressing infrastructure-related challenges.
The NESCO project highlights the extent to which ageing equipment can limit the performance of existing facilities, while the proposed solar integration offers an opportunity to increase generation and improve supply consistency.
The Electricity Act 2023 also provides a regulatory basis for greater private sector participation, although the long-term success of the projects will depend on effective implementation and coordination among government institutions, developers and investors.
WHAT’S NEXT
The immediate priority is to move the three projects towards financial close and implementation after the completion of their technical and preparatory assessments.
The proposed National Small Hydropower Policy is also expected to provide a framework for investment and guide the development of the sector.
Further coordination among state governments, financiers, developers and relevant agencies will be necessary to advance the projects.
BOTTOM LINE
The partnership between Nigeria and the UK presents an opportunity to unlock part of the country’s largely untapped small hydropower resources. However, the real test will be whether the proposed investments translate into completed projects, increased electricity generation and improved access to reliable power for underserved communities.
