Nigerian Government Hands Over Zungeru Hydroelectric Power Plant to Concessionaire

Towards boosting Nigeria’s power generation capacity, the Nigerian Government has officially transferred the operations of the Zungeru Hydroelectric Power Plant to a concessionaire, Penstock Limited.

The announcement was made by Vice President Kashim Shettima during the first meeting of the National Council on Privatisation (NCP) for the year 2024.

The transfer of operations to Penstock Limited is expected to contribute significantly to meeting the country’s growing energy demands.

The Zungeru Hydroelectric Power Plant, located in Niger State, is the second-largest hydroelectric power plant in Nigeria, with a capacity of 700 megawatts.

The concession agreement was signed on December 13, 2023, by the Bureau of Public Enterprises (BPE) and Penstock Limited.

Following the Council approval, the Concessionaire fulfilled its obligation by paying 50 percent of the commencement fees on January 5, 2024.

The official handover ceremony took place on January 23, 2024, officially transferring the plant’s operations to Penstock Limited.

This development is part of the Nigerian Government’s ongoing efforts to improve the country’s power infrastructure and meet the growing energy needs of its population.

With the successful transfer of the Zungeru Hydroelectric Power Plant to a private concessionaire, it is expected that the plant will be managed more efficiently, leading to an increase in power generation and a reduction in power outages.

The Nigerian Government’s transfer of the Zungeru Hydroelectric Power Plant to a concessionaire marks a significant step in the country’s efforts to improve its power infrastructure and meet the energy needs of its citizens.