The Federal Government has concessioned the 6-megawatt Ikere Gorge Hydropower Plant in Oyo State as part of efforts to expand Nigeria’s electricity supply and attract private sector investment into the power sector.
The concession agreement was executed through the Infrastructure Concession Regulatory Commission (ICRC) in collaboration with the Federal Ministry of Power, handing operational control of the facility to a private concessionaire under a long-term arrangement. Officials say the move is aimed at accelerating the completion and optimal use of the hydropower plant, which has remained largely underutilized for years.
Speaking at the handover ceremony, ICRC Director-General Michael Ohiani said the concession aligns with the government’s broader strategy to leverage public-private partnerships to close infrastructure gaps and improve service delivery.
“The Ikere Gorge Hydropower Plant has the capacity to contribute clean and reliable energy to the national grid,” Ohiani said. “Concessioning it ensures efficiency, sustainability, and value for money for Nigerians.”
Located on the Ikere Gorge Dam, originally built for water supply and irrigation, the hydropower plant is expected to deliver up to 6MW of renewable electricity to nearby communities and strengthen supply within the South-West region.
Power ministry officials said the project would reduce dependence on fossil fuels, support Nigeria’s energy transition goals, and improve electricity access for households and small businesses.
The concessionaire is expected to invest in rehabilitating existing infrastructure, completing outstanding works, and maintaining the facility throughout the concession period. Government officials said strict performance benchmarks have been built into the agreement to ensure compliance and service reliability.
Authorities estimate that the project will create jobs during rehabilitation and operation, while boosting economic activity in host communities. Local businesses are expected to benefit from improved power supply, particularly agro-processing enterprises that rely on stable electricity.
Energy experts say small hydropower projects like Ikere Gorge play a critical role in diversifying Nigeria’s energy mix and decentralizing power generation.
“While 6MW may seem modest, projects like this are important for regional stability and off-grid or embedded power solutions,” said an Abuja-based energy analyst.
The concession comes amid ongoing reforms in Nigeria’s power sector, including efforts to attract private capital, improve grid efficiency, and expand renewable energy capacity. The federal government has said similar concession arrangements are being considered for other underutilized power assets nationwide.
Officials expressed optimism that the Ikere Gorge project would serve as a model for future partnerships, demonstrating how idle infrastructure can be transformed into productive assets.
Once fully operational, the hydropower plant is expected to contribute to improved electricity reliability, lower emissions, and progress toward Nigeria’s long-term energy security goals.
