Abuja, Nigeria — The Federal Government has signed a $1.5 billion concession agreement for the development of the Grand Katsina-Ala Hydropower Project, a major energy infrastructure initiative expected to boost Nigeria’s electricity generation capacity.
The agreement marks a significant step in the country’s push to expand renewable energy investment through Public–Private Partnership (PPP) arrangements aimed at addressing persistent power shortages.
The project, located on the Katsina-Ala River in Benue State, is expected to generate about 460 megawatts (MW) of electricity upon completion, contributing to the national grid and improving power supply stability across the country.
According to details of the agreement, the project will be delivered under a Design, Finance, Build, Operate, and Transfer (DFBOT) concession model. A private sector consortium, reportedly led by Maverick Energy Partners, will handle funding, construction, and operation of the facility over an agreed concession period before eventual transfer to the Federal Government.
The government, through the Ministry of Finance Incorporated (MOFI), is expected to retain a minority equity stake in the project as part of the partnership structure.
Officials say the hydropower development is expected to deliver significant economic and social benefits, including job creation, improved electricity supply for industries and households, and enhanced agricultural activities through irrigation support in Benue State and surrounding regions.
The project is also viewed as part of Nigeria’s broader strategy to diversify its energy mix and reduce dependence on fossil fuel-based power generation, while strengthening renewable energy capacity.
Further implementation steps, including financial close and construction timelines, are expected to follow in the coming phases of the project.
