The federal government on Wednesday finalized a 30-year concession deal with Quaint Energy for the construction of the 6-megawatt Ikere Gorg...
The federal government on Wednesday finalized a 30-year concession deal with Quaint Energy for the construction of the 6-megawatt Ikere Gorge Hydropower Project in Oyo State, representing a significant step forward in Nigeria's efforts to promote cleaner and more sustainable energy production.
The event, which took place in Abuja, was led by the Minister of Power, Chief Adebayo Adelabu, who referred to the signing as the result of over ten years of discussions between the government and the private developer.
Adelabu highlighted that the Ikere Gorge initiative, together with the 2MW Omi-Kampe Hydropower Project in Kogi State, is a component of the Federal Government's strategy to increase renewable energy production, improve energy availability, and boost local electricity markets.
"It brings me immense joy to be here today to observe 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 occasion represents another significant step forward in our shared effort to attain a sustainable, dependable, and cost-effective electricity supply throughout Nigeria," the minister stated.
He mentioned that the hydroelectric projects go beyond being mere energy investments—they serve as drivers for rural industrialization and improvements in agricultural output.
"Once fully established, these facilities could provide consistent power to nearby communities, aid agricultural processing areas, small-scale industries, and social infrastructure, and drive economic development in rural regions," he stated.
Even though the agreement for the Omi-Kampe project was postponed to enable both sides to complete the contract terms, Adelabu emphasized that both initiatives reaffirmed the Federal Government's dedication to private sector-driven development in the power sector.
He stated that the government's current emphasis is on establishing a supportive regulatory framework, maintaining policy consistency, and reducing risks for private investments via reliable collaborations and clear procedures.
The Ikere Gorge Dam project and the Omi-Kampe Dam Projects go beyond being just hydropower agreements; they represent a strategic move that highlights the Federal Government's commitment to improving energy availability, boosting state electricity markets, and increasing local industrial efficiency via clean and sustainable energy sources.
"Through collaborative efforts such as this concession, we are accessing funds, technological advancements, and creativity from the private sector to carry out initiatives that have a tangible effect on people and enhance energy security," Adelabu said.
As per his statement, once fully established, the hydropower facilities hold significant potential to expand dependable electricity to nearby communities, aid agricultural processing areas, small-scale industries, and social infrastructure, and drive rural economic development in Oyo and Kogi States, respectively.
The Ikere Gorge Dam was first proposed in the late 1970s, with construction starting in the early 1980s across different government periods. It was designed as a multi-functional project aimed at producing electricity, supporting agriculture, and providing water supply. The embankment dam is located on the Ogun River within Iseyin Local Government Area and features a significant reservoir, estimated to hold about 690 million cubic meters of water, which has been acknowledged for its potential in hydroelectric power and irrigation initiatives.
Constructed during the initial periods of civilian and military rule, the original blueprint aimed for a significantly higher hydropower capacity. However, following partial development and the purchase of machinery in the 1980s, the power project came to a standstill. Multiple efforts to develop or restart the hydropower initiative have failed, resulting in turbines and electrical components being left to suffer from years of abandonment and rust.
The official also highlighted the government's effort to address the nation's prolonged lack of metering infrastructure.
He revealed that N700bn has been gathered by the Federation Accounts Allocation Committee to support the implementation of the Presidential Metering Initiative.
The effort supports the World Bank's $500 million Distribution Sector Recovery Program, which aims to install 3.45 million new meters in Nigeria's power grid.
Adelabu stated that the administration's continuous reforms and commercialization initiatives led to a 70% increase in revenue for the power sector in 2024, while reducing government debts by N700bn.
The energy scene in Nigeria is changing quickly, with numerous investment possibilities throughout the power sector," the minister stated. "Our policy framework is well-defined, and our national leadership is dedicated to fostering long-term investment and creativity.
He stated that the National Integrated Electricity Policy has already drawn more than $2 billion in fresh investments, focused on increasing electricity access and enhancing private sector involvement.
He also emphasized significant accomplishments in Nigeria's electricity grid management, such as the first-ever synchronization of the Nigerian grid with the West African Power Pool, connecting all 14 member nations for more than four hours, which he called "a historic milestone for regional energy integration."
Thanks to these advancements, the minister emphasized that Nigeria's route to energy security and sustainability involves utilizing public-private collaborations, renewable energy initiatives, and clear regulatory oversight to ensure consistent electricity supply for the population.
In response, Mr. Femi Adeyanju, Chairman of Quaint Energy, assured that the company would complete the project on time and in accordance with international standards.
"We will not let you down. This initiative will not only aid the local communities but also demonstrate Quaint Energy's ability to carry out eco-friendly power projects," Adeyanju assured.
Provided by SyndiGate Media Inc.Syndigate.info).
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