FG Signs $1.5 billion concession agreement for power project in Benue

The Nigerian government has signed a $1.5 billion concession agreement for the Grand Katsina-Ala Hydropower Project in Benue State, with the appointment of Maverick Energy Partners as the preferred concessionaire.

The concessionaire will be responsible for the development, financing, construction and operation of the 460-megawatt storage hydropower project located on the Katsina-Ala River.

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Structured under a 35-year Design, Finance, Build, Operate and Transfer public-private partnership framework, the project will see the Federal Government retain a minimum 10 per cent equity stake through the Ministry of Finance Incorporated.

Financial close for the project is expected in 2027.

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According to a statement issued by Maverick Energy Partners, the agreement followed years of technical planning, regulatory approvals and institutional coordination involving the Federal Executive Council, the Infrastructure Concession Regulatory Commission and the Transmission Company of Nigeria.

Beyond electricity generation, the Grand Katsina-Ala project is being positioned as a major economic development platform with the potential to reshape industrial activity, agriculture and regional productivity in Benue State and beyond.

Benue, widely regarded as Nigeria’s food basket, stands to benefit significantly from improved electricity access needed for agro-processing, irrigation systems, cold-chain logistics, manufacturing and supply-chain expansion.

The project is expected to generate about 2,401 gigawatt-hours of electricity annually and inject stable baseload power into Nigeria’s national grid at a time when energy shortages continue to constrain industrial growth and economic competitiveness.

Project promoters said hydropower remains one of the few renewable energy technologies capable of supplying dependable large-scale electricity, making the investment strategically important for Nigeria’s energy transition agenda.

The development is also projected to create thousands of direct and indirect jobs across engineering, construction, logistics, agriculture, plant operations and supporting industries, with expected multiplier effects on local businesses and regional value chains.

Maverick Energy Partners described the project as aligned with President Bola Tinubu’s infrastructure-driven growth strategy, energy security agenda and broader economic diversification goals.

Chairman of Maverick Energy Partners, Dr Johnson Adewumi, said the initiative goes beyond building a power plant.

“Grand Katsina-Ala is not simply a power project; it is a platform for economic transformation. Reliable baseload electricity creates the conditions for manufacturing, agro-processing, industry and sustained regional development,” he said.

He added that the project could become a model for delivering strategic infrastructure through well-structured public-private partnerships across Africa.

The consortium behind the project brings deep hydropower experience, with its principals linked to major energy developments including the Zungeru, Mambilla and Gurara hydropower projects.

Strategic advisory and capital mobilisation support for the deal was led by London-based GAN International Ltd and Blackwell Advisors Ltd, focusing on financing strategy, project bankability, investor engagement and sovereign coordination.

Founder of GAN International and Blackwell Advisors, Brigitte Tilley-Gyado, said the project demonstrates what can happen when government commitment, technical expertise and long-term capital converge around a shared development objective.

“Africa does not suffer from a shortage of capital; it suffers from a shortage of bankable projects,” she said.

For Nigeria, the Grand Katsina-Ala agreement represents more than another infrastructure announcement. It reflects a growing push to harness renewable energy not only to close the electricity deficit but also to unlock agricultural expansion, industrialisation and long-term regional economic growth.

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