The government called for the development of scalable, replicable programmes capable of attracting private investment into small dam development across the country.
Nigeria's vast but underutilised small hydropower potential could significantly advance the country's clean energy and climate ambitions, the Chief Technical Adviser to the Minister of Power, Adedayo Olowoniyi, has said.
Mr Olowoniyi, who represented the Minister of Power, Adebayo Adelabu, made the remarks on Thursday at the UK PACT (Partnering for Accelerated Climate Transition) stakeholder engagement workshop in Abuja.
The workshop, themed "Catalysing Run-of-River Small Hydropower for Nigeria's Decentralised Energy Transition," was organised by AP3, an Africa-focused public-private partnership and infrastructure finance advisory firm.
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According to the organisers, the event sought to align stakeholders on technical, policy and regulatory pathways to accelerate the deployment of Small Hydropower (SHP) nationwide.
Mr Olowoniyi noted that although Nigeria has an estimated 14 gigawatts of hydropower capacity, only about 2.5 gigawatts currently supply the national grid.
He called for the development of scalable, replicable programmes capable of attracting private investment into small dam development across the country.
"Today's event could not be timelier. As Nigeria continues its pursuit of reliable, affordable, and sustainable electricity, it is essential that we maximise every viable renewable resource--especially those capable of accelerating access for unserved and underserved communities," Mr Olowoniyi said.
He added that run-of-river small hydropower offers a major opportunity for delivering clean, reliable energy with minimal environmental impact while aligning with the country's energy transition objectives, rural electrification targets and productive-use energy needs.
The conversation comes amid heightened global debate on how nations can transition equitably to clean energy as climate impacts worsen. While oil-producing countries like Nigeria struggle to reduce reliance on fossil fuels, experts say run-of-river small hydropower could play a transformative role in the nation's transition, complementing the rapid adoption of solar systems.
Repositioning Nigeria's power sector
Speaking on broader power sector reforms, Mr Olowoniyi said the UK PACT-funded Small Hydropower Programme aligns with the government's comprehensive, multi-pronged strategy to reposition the Nigerian power sector for sustainability, efficiency and growth.
He said the strategy spans five pillars: legislation; policy reforms; infrastructure development; energy transition and access expansion; and local content and capacity development.
On legislation, he described the Electricity Act 2023 as a major milestone that strengthens governance in the Nigerian Electricity Supply Industry (NESI), devolves regulatory powers to states, promotes competition and expands private-sector participation.
Since the act's passage, he said, 15 states have secured regulatory autonomy to establish subnational electricity markets, with one already fully operational.
On policy reforms, Mr Olowoniyi highlighted the Integrated National Electricity Policy approved in February, ongoing commercialisation efforts that have raised sector revenue by 70 per cent to ₦1.7 trillion in 2024, and President Bola Tinubu's approval of a ₦4 trillion bond to clear verified generation and gas supply debts.
He added that a targeted subsidy framework is being developed to protect vulnerable households while deepening commercialisation.
"In infrastructure development, the Federal Government has introduced targeted national programmes aimed at accelerating the viability, expansion, and modernization of the national grid," he said.
He cited progress under the Presidential Power Initiative (PPI), including more than 700MW of additional transmission capacity and contracts for Phase One, which is expected to deliver 7,000MW of operational grid capacity.
He also referenced the integration of the 700MW Zungeru Hydropower Plant, the rehabilitation of NIPP plants expected to unlock 345MW, and the historic synchronisation of Nigeria's grid with the West African Power Pool covering 14 countries.
On distribution, he said the Presidential Metering Initiative (PMI) has secured ₦700 billion to deploy 1.1 million meters by 2025 and an additional two million annually for five years. This complements the 3.2 million meters under the World Bank-supported DISREP programme.
On energy access, he noted that more than $2 billion has been mobilised in two years through DARES, the NSIA's RIPLE platform and JICA to expand off-grid and mini-grid solutions across communities, schools, health facilities and public institutions.
"On local content and capacity development, the Ministry recently commissioned new training equipment and infrastructure at NAPTIN. At the Nigerian Renewable Energy Innovation Forum (NREIF) 2025, we activated agreements that will bring nearly 4GW per annum of solar manufacturing capacity on stream," he added.
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With this scale of manufacturing, he said, Nigeria is now positioned to meet domestic renewable energy targets and serve regional markets, citing the recent export of Nigeria-made solar panels to Ghana.
Small hydropower potential
AP3 Managing Partner, Gori Daniel, said Nigeria is at a pivotal moment in its energy transition journey as rising demand and persistent energy deficits place increasing pressure on the national grid.
He said the urgency for diversified, resilient and low-carbon energy solutions has never been greater.
"Small Hydropower, particularly Run-of-River systems, offers a unique opportunity to bridge this gap. It is clean, reliable, locally sourced, climate-resilient, and capable of powering livelihoods and local industries while reducing the nation's dependence on diesel and other carbon-intensive alternatives," he said.
Backed by UK PACT funding, he said AP3 is implementing a comprehensive technical assistance programme involving hydrological assessments, feasibility studies, community engagement, environmental and social safeguards, and investment readiness.
"Our goal is simple but ambitious: to build a pipeline of technically sound, commercially viable, and policy-aligned SHP projects that can attract public, private, and blended finance at scale," Mr Daniel said.
