The United Kingdom and Nigerian governments are seeking to attract private investment into three small hydropower projects in Oyo, Kano and Plateau states as part of efforts to expand electricity generation and improve power supply to underserved communities.

The initiative, supported by the UK Partnering for Accelerated Climate Transitions, is targeting the development and rehabilitation of the Ikere Gorge project in Oyo State, Ghari Dam in Kano State and the NESCO hydropower cascade in Plateau State.

According to a statement on Tuesday, the projects were the focus of an investor roundtable held in Abuja on Wednesday, where policymakers, financiers and developers discussed ways to move them from technical preparation towards financial close.

Implemented by Africa PPP Advisory and Ratio Consulting, the programme has supported feasibility studies, dam safety assessments, environmental and social safeguards, energy audits, financial modelling and transaction structuring for the three projects.

Speaking at the meeting, British Deputy High Commissioner, Vicky Seymour, said the UK was working with Nigerian partners to attract private capital into renewable energy development.

She said the collaboration was intended to move the projects from technical assessments to implementation while improving electricity access and supporting economic activities in communities.

Nigeria’s Minister of Power, Joseph Olasunkanmi Tegbe, represented by the Special Adviser to the President on Power, Martin Olajide, said the Federal Government remained committed to creating an enabling environment for renewable energy investments.

He said the Electricity Act 2023 had created opportunities for state electricity markets and increased scope for private sector participation in power generation and distribution.

He added that the projects must also address community benefits, dam safety and environmental protection to ensure their long-term sustainability.

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, said combining hydropower with solar energy could increase generation capacity and improve reliability across seasons.

He cited the NESCO hydropower cascade in Plateau State, where solar integration could increase the system’s potential capacity from about 30 megawatts to 100 megawatts or more.

The NESCO system, established in 1929, comprises eight dams and eight power stations. Although it has an installed capacity of 25.5 megawatts, ageing equipment has constrained its performance. The rehabilitation programme is targeting an increase to approximately 40.25 megawatts.

At Ikere Gorge in Oyo State, which has remained dormant for decades, technical studies have identified hydropower potential of up to 14 megawatts. The proposed hybrid development involving solar power has a target capacity of 100 megawatts.

The project is being advanced with concessionaire Quaint Energy, alongside the Oyo State and Federal Governments.

Representing the Rural Electrification Agency, Jaafar Dikko said Nigeria had more than 3,500 megawatts of small hydropower potential, much of which remained untapped.

He said existing dams could provide electricity for rural communities, waterworks and agro-processing facilities, adding that the agency was prepared to support viable projects through public-private partnerships and financing arrangements.

The roundtable also featured the presentation of the zero draft of Nigeria’s National Small Hydropower Policy, which is expected to provide a framework for developing the sector and attracting investment.

Participants examined regulatory arrangements under the Electricity Act 2023, coordination with the World Bank’s SPIN master plan and a Small Hydropower Deployment Toolkit designed to guide state governments, developers and financiers.