Nigeria Partners with UK to Attract Private Investment into Three Hydropower Projects

Nigeria and the United Kingdom are strengthening cooperation in renewable energy development, with plans to attract private-sector investment into three hydropower projects aimed at improving electricity access and supporting economic growth.

The initiative is expected to unlock the potential of existing water infrastructure while creating new investment opportunities in Nigeria’s electricity sector.

According to Punch Newspapers, the collaboration is supported by the UK Partnering for Accelerated Climate Transitions programme and focuses on three strategic hydropower locations.

The selected projects are Ikere Gorge in Oyo State, Ghari Dam in Kano State and the NESCO hydropower cascade in Plateau State.

Unlocking Nigeria’s Renewable Energy Potential

Nigeria continues to face significant electricity supply challenges, affecting businesses, industries and households.

Although the country possesses considerable hydropower resources, several existing facilities have remained underutilised because of ageing equipment, inadequate financing and infrastructure limitations.

The proposed investments are expected to support the rehabilitation and development of hydropower facilities through partnerships between governments and private investors.

At the NESCO hydropower cascade in Plateau State, rehabilitation is targeting an increase in installed capacity from 25.5 megawatts to approximately 40.25 megawatts.

Project developers are also exploring opportunities to combine hydropower with solar technology to improve generation capacity and reliability.

At Ikere Gorge in Oyo State, technical studies have identified hydropower potential of up to 14 megawatts, while a proposed hybrid development has a target capacity of 100 megawatts.

What This Means for Businesses

Improved electricity access could significantly benefit Nigerian businesses, particularly small manufacturers, agricultural processors and enterprises operating in underserved communities.

Reliable power can help reduce dependence on expensive diesel and petrol generators, improve production efficiency and lower operating costs.

The projects may also create opportunities for engineering companies, construction firms, equipment suppliers and renewable energy developers.

The Bigger Picture

The Nigeria-UK hydropower initiative represents an opportunity to attract long-term infrastructure investment while expanding the country’s renewable energy capacity.

However, the projects are still progressing through preparation and investment mobilisation. Financial closure, construction and eventual electricity generation remain important milestones.

If successfully implemented, the initiative could support industrial productivity, rural electrification and Nigeria’s broader transition towards a more diversified energy system.