House of Representatives Summons Minister of Water Resources Over 2005 Dadin-Kowa 40MW Hydropower Project Delays

Introduction

In a significant development for Nigeria’s energy sector, the House of Representatives Ad-hoc Committee on energy technological advance reforms and expenditures from 2007 to 2024 has summoned the Minister of Water Resources and key officials. This action centers on the long-standing issues plaguing the 40MW Dadin-Kowa Hydropower Project, initiated under a 2005 Build-Operate-Transfer (BOT) concession. Located on the Dadin-Kowa Dam in Gombe State, this hydropower initiative promised reliable power generation but has faced prolonged delays, regulatory bottlenecks, and unclear obligations among government agencies.

The summons highlights critical gaps in project execution nearly two decades into its 25-year term, underscoring broader challenges in Nigeria’s hydropower development. As the nation pushes for energy stability under President Bola Tinubu’s administration, understanding the Dadin-Kowa Hydropower Project’s hurdles offers insights into infrastructure concessions and power sector reforms.

Analysis

The Dadin-Kowa Hydropower Project exemplifies the complexities of public-private partnerships in Nigeria’s renewable energy landscape. Concessioned in 2005 to Mabon Generating Company, the 40MW facility aims to harness the Dadin-Kowa Dam’s water resources for electricity production, contributing to the national grid.

Background on the Project and Concession

The Dadin-Kowa Dam, completed in the early 1980s by the Upper Benue River Basin Development Authority, supports irrigation, water supply, and hydropower. The 2005 BOT agreement allowed Mabon Generating Company to build, operate, and eventually transfer the plant after 25 years. BOT models are common in infrastructure to leverage private investment while minimizing government upfront costs. However, the project’s path has been marred by delays since inception.

Triggers for the House Committee Summons

During a recent presentation by Mabon Generating Company, the Ad-hoc Committee, chaired by Architect Ibrahim Almustapha Aliyu, identified unacceptable inconsistencies. Key concerns include 20 years of delays, multiple addendums (notably a 2015 one), approval delays, and ambiguous roles among agencies like the Upper Benue River Basin Development Authority and Hadejia-Jama’are River Basin Development Authority. Chairman Aliyu questioned the due diligence by both the concessionaire and supervising bodies, noting that initial assessments deemed the facility ready, yet midway challenges emerged.

Scope of Required Submissions

The committee demands comprehensive documents, including the original 2005 concession agreement, the 2015 addendum, appraisal committee reports, performance reviews, generation outputs, identified gaps, and payment records. Officials must appear on December 4, 2025, to address these issues.

Performance Highlights from Mabon

Mabon’s Chief Operating Officer, Umar Shehu Hashidu, reported that the company has supplied over 700 million kilowatt-hours (kWh) to the national grid since 2021 without receiving federal grants or direct loans. All requested documents, including regulatory approvals from the Infrastructure Concession Regulatory Commission (ICRC), have been submitted.

This analysis reveals systemic issues in Nigeria’s hydropower sector, where projects like Dadin-Kowa face regulatory hurdles that delay clean energy delivery and inflate costs.

Summary

The Nigerian House of Representatives has summoned the Minister of Water Resources, MDs of river basin authorities, the Nigeria Integrated Water Resources Management Commission CEO, ICRC representatives, and 2005 concession signatories over the Dadin-Kowa 40MW Hydropower Project. Issued on Wednesday by Committee Chairman Arch. Ibrahim Almustapha Aliyu, the summons addresses 20 years of delays in the BOT concession. Officials are to appear on December 4, 2025, with full documentation. This probe ties into broader energy reforms amid Nigeria’s power challenges.

Key Points

Practical Advice

For stakeholders in Nigeria’s hydropower and energy sectors, this summons offers actionable lessons on managing BOT concessions and infrastructure projects.

Enhancing Due Diligence in Concessions

Conduct thorough pre-concession audits of site readiness, including hydrological studies and infrastructure assessments. Engage independent appraisers to mitigate midway discoveries of challenges.

Streamlining Regulatory Approvals

Private operators should map agency roles early, using tools like the ICRC’s guidelines for concession monitoring. Regular performance audits can preempt addendums and disputes.

Optimizing Power Generation and Grid Integration

Invest in predictive maintenance for turbines to maximize output, as seen in Mabon’s 700 million kWh delivery. Align with national initiatives like the Presidential Metering Initiative (PMI) to reduce losses.

Financial Planning Without Subsidies

Secure diverse funding via off-takers agreements and international green bonds, avoiding reliance on government loans, as demonstrated by Mabon.

Energy investors can apply these strategies to similar projects like the 40MW Kashimbilla or Zungeru hydropower plants for sustainable development.

Points of Caution

Navigating Nigeria’s hydropower landscape requires vigilance against common pitfalls observed in the Dadin-Kowa Project.

Risks of Prolonged Delays

Regulatory bottlenecks can extend timelines from years to decades, eroding investor returns. Monitor concession milestones quarterly.

Ambiguous Agency Responsibilities

Overlaps between bodies like river basin authorities lead to inaction. Clarify MoUs at concession signing.

Dependency on Addendums

Frequent revisions signal weak initial agreements. Limit addendums to force majeure events only.

Grid and Metering Challenges

Even with generation, unmetered supply causes losses (45-50% in Nigeria). Pair projects with metering rollouts like PMI.

Potential investors must assess political risks and secure insurance for concession disputes.

Comparison

The Dadin-Kowa 40MW Hydropower Project’s trajectory contrasts with other Nigerian hydropower efforts, highlighting varying success factors.

Versus Shiroro and Kainji Dams

Established government-owned plants like 600MW Shiroro (1990s) and 760MW Kainji deliver steady power but face aging infrastructure issues, unlike Dadin-Kowa’s private BOT delays.

Similarities with Mambilla Project

Both Dadin-Kowa and the delayed 3,050MW Mambilla share concession woes, international funding hurdles, and environmental disputes, with Mambilla stalled since 1980s planning.

Progress in Recent BOTs like Zungeru

The 700MW Zungeru plant, commissioned in 2022 under BOT elements, succeeded via streamlined approvals and Chinese financing, offering a model over Dadin-Kowa’s 20-year lag.

These comparisons emphasize the need for robust frameworks in Nigeria’s 13GW hydropower potential untapped reserves.

Legal Implications

The summons carries direct legal weight under Nigeria’s legislative oversight powers, as per the 1999 Constitution (as amended), Section 88, empowering House committees to investigate public expenditures.

Concession Agreement Enforcement

BOT contracts under ICRC regulations bind parties to timelines and outputs. Breaches could invoke arbitration clauses or termination, as in the 2005 Dadin-Kowa deal.

Regulatory Compliance

Agencies must adhere to the Infrastructure Concession Regulatory Commission Act 2005, ensuring transparent addendums. Non-compliance risks sanctions or judicial review.

Accountability for Public Funds

Though Mabon received no direct loans, any indirect subsidies or guarantees fall under probe, potentially leading to recovery actions if mismanagement is found.

Parties should prepare for evidentiary hearings, with outcomes possibly reshaping future hydropower concessions legally.

Conclusion

The House of Representatives’ summons over the Dadin-Kowa 40MW Hydropower Project marks a pivotal moment in Nigeria’s quest for reliable power. By addressing delays in this 2005 BOT initiative, the probe could catalyze reforms, enhancing accountability in energy technological advances. Coupled with efforts like the Presidential Metering Initiative—aiming to close a 7-million-meter gap and cut losses to 12-15%—these steps align with national goals for stable electricity. Stakeholders must heed the lessons to unlock hydropower’s role in Nigeria’s energy transition.

FAQ

Sources

• Vanguard News: “Reps summon minister over 2005 40MW Dadin-Kowa Hydropower mission” (Published November 26, 2025). Available at: www.vanguardngr.com
• Infrastructure Concession Regulatory Commission (ICRC) guidelines on BOT projects.
• Official reports on Nigeria’s hydropower capacity from Federal Ministry of Power.
• Presidential Metering Initiative updates from Special Adviser on Energy, Olu Verheijen.

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