By Oke Peter
The Federal Government on Wednesday signed a 30-year concession agreement with Quaint Energy for the development of the 6-megawatt Ikere Gorge Hydropower Project in Oyo State, marking a major milestone in Nigeria’s drive toward cleaner and more sustainable electricity generation.
The ceremony, held in Abuja, was presided over by the Minister of Power, Chief Adebayo Adelabu, who described the signing as the culmination of more than a decade of negotiations between the government and the private developer.
Adelabu noted that the Ikere Gorge project, alongside the 2MW Omi-Kampe Hydropower Project in Kogi State, forms part of the Federal Government’s strategic plan to expand renewable energy generation, enhance energy access, and stimulate state-level electricity markets.
“It gives me great pleasure to be here today to witness the signing of the concession agreement between the Federal Ministry of Power and Quaint Energy for the development of the 6MW Ikere Gorge Hydropower Project in Oyo State and the 2MW Omi-Kampe Hydropower Project in Kogi State. This event marks another important milestone in our collective journey toward achieving a sustainable, reliable, and affordable power supply across Nigeria,” the minister said.
He added that the hydropower projects represent more than energy investments—they are catalysts for rural industrialisation and agricultural productivity.
“Once fully developed, these plants have the potential to deliver reliable electricity to surrounding communities, support agricultural processing zones, small industries, and social infrastructure, and catalyse rural economic transformation,” he said.
Although the signing for the Omi-Kampe project was deferred to allow both parties to finalise contractual details, Adelabu stressed that both ventures reaffirmed the Federal Government’s commitment to private sector-led growth in the power industry.
According to him, the government’s focus is now on creating an enabling regulatory environment, ensuring policy stability, and de-risking private investments through credible partnerships and transparent processes.
“The Ikere Gorge Dam project and Omi-Kampe Dam Projects are more than hydropower concessions; it is a strategic intervention that underscores the Federal Government’s resolve to advance energy access, stimulate state electricity markets, and enhance local industrial productivity through clean and renewable energy sources.
“Through public–private partnerships like this concession, we are unlocking capital, technology, and innovation from the private sector to deliver projects that directly impact citizens and strengthen energy security,” Adelabu stated.
According to him, once fully developed, the hydropower plants have huge potential to scale further reliable electricity to surrounding communities, support agricultural processing zones, small industries, and social infrastructure, and catalyse rural economic transformation within Oyo and Kogi States, respectively.
Ikere Gorge Dam was conceived in the late 1970s, and construction began in the early 1980s under successive administrations as a multi-purpose scheme for power generation, irrigation, and water supply. The earth-fill dam sits on the Ogun River in Iseyin LGA and holds a large reservoir, commonly cited at roughly 690 million cubic metres, which has long been recognised as suitable for hydropower and irrigation projects.
Built during the early civilian and military governments of the era, the original master plan envisaged a far larger hydropower output, but after partial construction and equipment procurement in the 1980s, the power component stalled. Several attempts since then to commercialise or revive the hydropower option floundered, leaving turbines and electrical equipment exposed to decades of neglect and corrosion.
The minister further noted the government’s initiative to bridge the country’s long-standing metering deficit.
He disclosed that a total of N700bn has been mobilised from the Federation Accounts Allocation Committee to implement the Presidential Metering Initiative.
The initiative complements the World Bank’s $500 million Distribution Sector Recovery Programme, expected to add 3.45 million new meters to Nigeria’s electricity network.
Adelabu revealed that the administration’s ongoing reforms and commercialisation efforts had boosted the power sector’s revenue by 70 per cent in 2024, while cutting government liabilities by N700bn.
“Nigeria’s energy landscape is rapidly evolving, and investment opportunities abound across the power sector value chain,” the minister said. “Our policy environment is clear, and our national leadership is committed to long-term investment and innovation.”
According to him, the National Integrated Electricity Policy has already attracted over $2bn in new investments, aimed at expanding electricity access and deepening private sector participation.
He also highlighted major achievements in Nigeria’s electricity grid operations, including the first-ever synchronisation of the Nigerian grid with the West African Power Pool, linking all 14 member countries for over four hours, a feat he described as “a historic milestone for regional energy integration.”
With these developments, the minister reaffirmed that Nigeria’s path to energy security and sustainability lies in leveraging public-private partnerships, renewable energy projects, and transparent regulatory governance to deliver reliable power to citizens.
Responding, the Chairman of Quaint Energy, Mr. Femi Adeyanju, pledged that the company would deliver the project on schedule and in line with global standards.
“We will not disappoint. This project will not only benefit the host communities but also prove Quaint Energy’s capability to execute sustainable power projects,” Adeyanju assured.
