*Reviews contractual, operational limitations to plant’s efficiency
The Infrastructure Concession Regulatory Commission (ICRC) has stepped up its regulatory oversight of the $1.3 billion, 700-megawatt Zungeru Hydropower Project, with a view to improving the plant’s performance.
The plant, which is operated under a Public-Private Partnership (PPP) arrangement, is currently generating about 350 megawatts to the National Grid, according to the ICRC.
The commission said the move was in line with President Bola Ahmed Tinubu’s charge to unlock the potential of Nigeria’s power sector.
The President had reaffirmed the commitment in his 2026 Democracy Day speech, declaring that, “Electricity is a democratic dividend we owe every Nigerian.”
The ICRC, acting under the ICRC Act 2005, 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.
Speaking at the meeting, ICRC Director-General, Dr. Jobson Oseodion Ewalefoh, said PPP assets such as Zungeru could not be allowed to operate below capacity as the administration works to address the country’s power challenges.
He said the meeting was convened to identify and address the issues hindering the plant’s optimal performance.
“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 explained that the ICRC was established as the regulator of PPPs and was therefore not a party to any PPP agreement, but was responsible for ensuring compliance by both the grantor and concessionaire with the terms and obligations contained in the agreement.
Section 20 of the ICRC Act states: “The Commission shall:
a. take custody of every concession agreement made under this Act and monitor compliance with the terms and conditions of such agreement;
b. ensure efficient execution of any concession agreement or contract entered into by the Government;
c. ensure compliance with the provisions of this Act;
d. perform such other duties as may be directed by the President, from time to time and as are necessary or expedient to ensure the efficient performance of the function of the Commission under this Act.”
Ewalefoh said, “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.”
The ICRC DG disclosed that the ICRC Act 2005 defines the Commission’s reporting line to the President, adding that similar compliance reviews, would be carried out on other PPP- operated power plants, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila, and a final report submitted to the President.
Ewalefoh pledged the commission’s commitment to working with all stakeholders, particularly the Federal Ministry of Power, to ensure that PPP power projects contribute optimally to meeting Nigerians’ energy needs.
He said the ICRC would also review other existing PPP arrangements to ensure optimal performance, stressing that efficiency was a key reason government assets were handed over to the private sector.
At the end of the meeting, the ICRC and the stakeholders itemised the legal and operational issues raised and agreed on a date to reconvene.