By Anita Dennis
The federal government’s renewed attention to the 700MW Zungeru Hydropower Project has raised questions about the performance of Nigeria’s public-private partnership (PPP) assets, particularly as the country continues to face inadequate electricity supply.
The Infrastructure Concession Regulatory Commission (ICRC) has intensified oversight of the concession arrangement involving Penstock Limited, bringing key government institutions and the private concessionaire together to identify and resolve the legal and operational constraints limiting the plant’s output.
According to the commission, the $1.3 billion project currently generates about 350MW for the national grid, half its installed capacity. The intervention therefore shifts attention from expanding generation infrastructure to ensuring existing assets deliver their expected output.
The review aligns with President Bola Ahmed Tinubu’s broader commitment to improving electricity supply. In his 2026 Democracy Day address, the President described electricity as a fundamental obligation of government, stating that “Electricity is a democratic dividend we owe every Nigerian.”
At a stakeholders’ meeting in Abuja involving the Federal Ministries of Power and Water Resources and Sanitation, the Bureau of Public Enterprises (BPE) and Penstock Limited, Director-General of ICRC, Dr. Jobson Oseodion Ewalefoh, said PPP assets could not be allowed to operate below capacity while the government sought to address the country’s electricity challenges.
He said the meeting was convened to identify the constraints affecting Zungeru’s performance and establish how they could be resolved.
“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results,” Dr. Ewalefoh said.
His position highlights a central issue in infrastructure concessions: transferring operational responsibilities to private investors does not automatically guarantee efficiency. The agreements must be implemented, monitored and enforced to deliver the expected public benefits.
Established under the ICRC Act 2005, the commission is responsible for monitoring compliance with concession agreements and ensuring their efficient execution. Section 20 of the Act mandates it to take custody of concession agreements, monitor compliance with their terms and ensure that government concession contracts are executed efficiently and in accordance with the law.
Dr. Ewalefoh clarified that the commission’s role is regulatory rather than contractual, emphasising that all parties must fulfil their respective obligations.
“In PPP, risks are shared and no party is doing the other a favour,” he said. “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 Zungeru review will not be an isolated exercise. Dr. Ewalefoh disclosed plans for similar compliance reviews of other PPP-operated power plants, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.
These reviews could help the government determine whether Zungeru’s challenges are project-specific or reflect wider weaknesses in concession management, operational coordination, financing or the allocation of responsibilities among stakeholders.
The involvement of multiple government institutions also highlights the interconnected requirements of hydropower operations, where water resources management, electricity policy and private-sector performance can influence generation.
The stakeholders concluded the meeting by identifying legal and operational issues requiring attention and agreeing to reconvene. The next phase will be critical in determining whether the review produces practical solutions that improve output.
Ultimately, the significance of the intervention will depend on measurable results. For Nigeria’s PPP framework to deliver value, concession agreements must translate into reliable infrastructure performance, better electricity supply and demonstrable benefits for the public.
