The Federal Government has commenced a regulatory review of the $1.3bn Zungeru Hydropower Project in Niger State as the 700-megawatt plant currently supplies about 350MW to the national grid.
The Infrastructure Concession Regulatory Commission disclosed this after convening a stakeholders’ meeting in Abuja to identify and address legal and operational challenges affecting the plant’s performance.
The meeting was attended by representatives of the Federal Ministry of Power, Federal Ministry of Water Resources and Sanitation, Bureau of Public Enterprises and Penstock Limited, the private concessionaire operating the project under a Public-Private Partnership arrangement.
In a statement signed by the Acting Head of Media and Publicity, Ifeanyi Nwoko, the ICRC said the review was aimed at optimising the plant’s performance and increasing its contribution to the national grid.
Speaking at the meeting, the Director-General of the ICRC, Jobson Oseodion Ewalefoh, said the government could not allow strategic PPP power assets to operate below their potential.
“President Bola Ahmed Tinubu’s promise to Nigerians that he will solve the power problem is not words for the sake of it. It is a statement he meant, and he has charged all of us to support him by playing our roles to deliver on this promise,” Ewalefoh said.
He said the meeting was specifically convened to identify the factors preventing Zungeru from operating optimally and determine how they could be resolved.
“With the administration earnestly working to resolve the country’s power challenges, PPP assets such as Zungeru could not be allowed to operate below capacity,” he added.
Located on the Kaduna River in Niger State, the Zungeru project has an installed capacity of 700MW and comprises four generating units. It was developed at an estimated cost of $1.3bn to boost electricity generation and improve the stability of the national grid.
The ICRC said its intervention was not intended to take over the concession agreement but to ensure compliance with the obligations of both the government and the private operator.
Ewalefoh explained that the ICRC was established under the ICRC Act 2005 to regulate PPP arrangements and monitor compliance with concession agreements.
“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results. In PPP, risks are shared, and no party is doing the other a favour. Our duty is to ensure sustainability, return on investment is achieved, services are delivered, and value for money is secured in the interest of the Nigerian people,” he said.
The ICRC DG said similar compliance reviews would be conducted on other power projects operated under PPP arrangements, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.
He said findings from the reviews would be compiled into a report for submission to President Tinubu.
The review comes as the Federal Government intensifies efforts to improve electricity supply by maximising output from existing power infrastructure.
At the end of the Abuja meeting, stakeholders identified the legal and operational issues affecting the Zungeru project and agreed to reconvene for further discussions.
The ICRC said the process would ultimately produce measures aimed at improving the plant’s performance and ensuring that the investment delivers greater value to Nigerians.