The Federal Government has launched a regulatory review of the $1.3bn Zungeru Hydropower Project in Niger State, with a focus on raising the plant’s electricity generation from its current output of about 350 megawatts to its installed capacity of 700MW.
The Infrastructure Concession Regulatory Commission disclosed that it had intensified its oversight of the project to identify and address the legal and operational challenges affecting its performance.
The development followed a stakeholders’ meeting convened by the ICRC in Abuja and attended by officials of the Federal Ministry of Power, the Federal Ministry of Water Resources and Sanitation, the Bureau of Public Enterprises and Penstock Limited, the private concessionaire operating the plant.
According to the commission, the meeting was aimed at finding ways to improve the plant’s contribution to the national grid as the Federal Government seeks to increase electricity supply and tackle persistent power shortages.
A statement signed by the Acting Head, Media and Publicity, Ifeanyi Nwoko, said, “The Infrastructure Concession Regulatory Commission has stepped up its regulatory oversight on the $1.3bn, 700-megawatt Zungeru Hydropower Project in a bid to optimise the performance of the plant, which is operated under a Public-Private Partnership arrangement and currently generating about 350 megawatts to the National Grid.”
Speaking at the meeting, the Director-General of the ICRC, Jobson Oseodion Ewalefoh, said the government could not allow strategic power projects operated under PPP arrangements to continue performing 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,” he said.
Ewalefoh said the meeting was specifically organised to determine the factors restricting Zungeru’s performance and find appropriate solutions.
“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 said.
Located on the Kaduna River in Niger State, the Zungeru Hydropower Project is one of Nigeria’s major investments in electricity generation.
The plant has four generating units and an installed capacity of 700MW.
The project was developed at an estimated cost of $1.3bn and was designed to provide significant additional electricity to the national grid and improve the stability of power supply.
Under the PPP arrangement, the Federal Government remains the grantor, while Penstock Limited is responsible for operating the facility in line with the terms of the concession agreement.
The ICRC stressed that its intervention was not intended to take over the concession but to ensure that the parties involved complied with their respective obligations.
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.
He said Section 20 of the ICRC Act empowered the commission to take custody of concession agreements, monitor compliance with their terms, ensure their efficient execution and enforce compliance with the law.
The ICRC DG added that the review would not be limited to Zungeru, as similar compliance assessments would be carried out on other power projects operated under PPP arrangements.
He named Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila among the projects to be reviewed, noting that the findings would be compiled and submitted to President Tinubu.
The review comes as the Federal Government focuses on increasing electricity generation by improving the performance of existing infrastructure instead of depending solely on new power projects.
In his 2026 Democracy Day address, President Tinubu said, “Electricity is a democratic dividend we owe every Nigerian.”
The ICRC said the President’s statement reinforced the need for public assets and PPP investments to deliver the services for which they were established.
Ewalefoh said the commission would collaborate with the Ministry of Power and other stakeholders to improve the efficiency of PPP power projects.
He added, “Efficiency is a key reason government assets are handed over to the private sector, and the Commission must ensure that efficiency is achieved through regulatory monitoring and compliance.
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At the conclusion of the Abuja meeting, stakeholders identified the legal and operational challenges affecting the Zungeru project and agreed to reconvene for further discussions.
The commission said the process was expected to lead to measures that would improve the plant’s performance and enable it to deliver greater value to Nigerians.
