Why Small Hydropower Struggles To Scale In Nigeria
By NINI NDUONOFIT-AKOH
ENERGY experts, policymakers and private sector players convened in Abuja on Thursday to assess the barriers slowing the development of small river hydropower in Nigeria and to outline reforms needed to unlock its potential for decentralised clean energy. The discussions took place during a UK PACT stakeholder engagement workshop organised by AP3, marking the launch of the UK PACT-funded Small Hydropower Project Preparation Programme to be implemented in Kano, Plateau and Oyo states.
Panellists at the session agreed that weak project preparation, regulatory uncertainty, prolonged approval processes and political risk continue to deter private investment in small hydropower projects. Sutura Bello of the Bureau of Public Enterprises said Nigeria lacks a clear pipeline of well-prepared, bankable projects, stressing that investors will not commit capital without proper technical and financial groundwork. She added that the absence of a dedicated PPP law creates confusion for investors seeking clarity on government counterparts and processes.
Mahmud Suleiman of Quaint Energy highlighted bureaucratic delays, citing hydropower concession processes that have lingered for years without implementation. He said incomplete feasibility studies and weak coordination between federal and state governments undermine investor confidence, although recent policy improvements have helped unblock some stalled approvals.
Addressing political risks, Gabriel Aduda of AP3 warned that policy inconsistency and frequent changes in leadership often lead to abandoned projects, making long-term infrastructure planning difficult. Meanwhile, Oluwagbenga Ajiboye of the Transmission Company of Nigeria noted that high transmission costs and limited funding restrict the evacuation of power from remote hydropower sites, calling for stronger collaboration with states.
Experts recommended clustering projects to improve economies of scale, involving financiers early in project design, and ensuring policy consistency to attract patient capital, arguing that small hydropower could significantly boost Nigeria’s clean energy transition if structural challenges are addressed.
