The Infrastructure Concession Regulatory Commission (ICRC) has intensified its regulatory oversight of the $1.3 billion, 700-megawatt Zungeru Hydropower Project. The plant, operated under a Public-Private Partnership (PPP) arrangement, currently generates about 350 megawatts for the National Grid. This move aligns with President Bola Ahmed Tinubu's commitment to unlocking Nigeria's power sector potential, as stated in his 2026 Democracy Day speech. The President emphasized that electricity is a democratic dividend owed to every Nigerian.
The ICRC convened a stakeholders' meeting in Abuja, involving the Federal Ministry of Power, Federal Ministry of Water Resources and Sanitation, Bureau of Public Enterprises (BPE), and the concessionaire, Penstock Limited. The BPE acts as grantor under a power of attorney from the Ministry of Power. ICRC Director-General, Dr. Jobson Oseodion Ewalefoh, stressed that PPP assets like Zungeru cannot operate below capacity while the administration addresses the country's power challenges. The meeting aimed to identify and address issues hindering the plant's optimal performance.
Dr. Ewalefoh emphasized that President Tinubu's promise to solve Nigeria's power problem is a commitment to be fulfilled. He noted that the ICRC, established as a PPP regulator, ensures compliance with concession agreements. Section 20 of the ICRC Act outlines the Commission's responsibilities, including monitoring concession agreements, ensuring efficient execution, and performing other duties directed by the President. The ICRC's role is to ensure sustainability, return on investment, and value for money in PPP projects.
The ICRC Director-General explained that signing a concession agreement is only the first step; implementation of the PPP agreement delivers results. He disclosed that the ICRC Act defines the Commission's reporting line to the President. Similar compliance reviews will be conducted on other PPP-operated power plants, including Kainji, Jebba, Shiroro, Dadinkowa, and Kashimbila. A final report will be submitted to the President.
Dr. Ewalefoh pledged the ICRC's commitment to working with stakeholders, particularly the Federal Ministry of Power, to ensure PPP power projects contribute optimally to meeting Nigeria's energy needs. The ICRC will review existing PPP arrangements to ensure optimal performance, emphasizing that efficiency is a key reason government assets are handed over to the private sector.
At the meeting's end, the ICRC and stakeholders itemized the raised legal and operational issues and agreed on a date to reconvene. The ICRC's efforts aim to support the Federal Ministry of Power in addressing Nigeria's power challenges. The Commission's regulatory oversight will ensure that PPP projects deliver value for money and meet the country's energy needs.
The Zungeru Hydropower Project, with a capacity of 700MW, has the potential to significantly contribute to Nigeria's power generation. The ICRC's intervention aims to unlock this potential and ensure the plant operates at optimal capacity. Key stakeholders are working together to address the challenges hindering the plant's performance and implement measures to improve its output.
Key points
- The ICRC is stepping up regulatory oversight of the Zungeru Hydropower Project to improve its performance and unlock Nigeria's power sector potential.
- The plant currently generates about 350 megawatts, half of its 700MW capacity, and the ICRC aims to address issues hindering its optimal performance.
- The ICRC's efforts align with President Bola Ahmed Tinubu's commitment to solving Nigeria's power problem and ensuring that electricity is a democratic dividend for every Nigerian.
