The House of Representatives’ Ad hoc Committee probing Nigeria’s power sector reforms and expenditure from 2007 to 2024 has summoned the Minister of Water Resources, top officials of key water management agencies, and signatories to the 2005 concession agreement for the 40MW Dadin-Kowa Hydropower Project.
The summons, issued Wednesday by Committee Chairman Arch. Ibrahim Almustapha Aliyu, follows a presentation by Mabon Generating Company, the concessionaire of the Dadin-Kowa plant, which highlighted prolonged delays, procedural inconsistencies, and operational gaps that lawmakers described as unacceptable. The hearing took place at the National Assembly in Abuja.
Aliyu directed that the Minister, alongside the Managing Directors of the Upper Benue River Basin Development Authority and Hadejia–Jama’are River Basin Development Authority, the Chief Executive of the Nigeria Integrated Water Resources Management Commission, officials of the Infrastructure Concession Regulatory Commission (ICRC), and signatories to both the original concession and subsequent addendum, appear before the committee on 4 December 2025.
The committee chairman explained that nearly 20 years into the 25-year Build-Operate-Transfer (BOT) agreement, the project has been plagued by delays, bureaucratic bottlenecks, and unclear allocation of responsibilities among government agencies.
He noted that while Mabon Generating Company had initially inspected and confirmed the facility’s readiness for 40MW generation, the company later cited challenges that necessitated an addendum to the original concession terms.
“From 2005 to now, 20 years have passed. The agreement was signed after confirming the plant was fit, yet midway, challenges emerged. This raises questions about the due diligence of both the company and supervising authorities,” Aliyu remarked.
The chairman said the matter had grown “multifaceted,” raising serious concerns about whether government officials fulfilled their obligations and whether taxpayer interests were adequately safeguarded over the long term.
The committee also requested submission of the appraisal committee’s report that reviewed the initial concession and recommended the addendum, along with all documents related to performance evaluations, generation output, gaps, and payment records.
“When you appear, bring the appraisal committee report that led to the addendum,” Aliyu directed.
During the hearing, Mabon Generating Company disclosed that it has contributed over 700 million kilowatt-hours (kWh) of electricity to the national grid since 2021 and has not received any grants or direct loans from the Federal Government since the project began in 2005.
Umar Shehu Hashidu, the company’s Chief Operating Officer presenting on behalf of the Managing Director/CEO, affirmed Mabon’s commitment to cooperating fully with the House committee, stressing the project’s importance to national development. He also confirmed that the company had submitted all requested documents, including the 2005 concession agreement, the 2015 addendum, and regulatory approvals.
The Dadin-Kowa hydropower project operates under a BOT model, granting Mabon the right to develop and operate the facility before transferring it back to the Federal Government.
Meanwhile, Special Adviser to the President on Energy, Olu Verheijen, highlighted the Presidential Metering Initiative (PMI) aimed at closing Nigeria’s seven-million-meter deficit and reducing electricity sector losses. Represented by Obafemi Sotebo, Director of the PMI, she said the initiative is part of President Bola Tinubu’s efforts to stabilize power supply nationwide.
Verheijen noted that over seven million electricity customers currently remain unmetered or use outdated analogue meters, a factor contributing to Nigeria’s high Aggregate Technical, Commercial and Collection (ATC&C) losses, estimated at 45–50 per cent.
“Addressing the metering gap could reduce losses to between 12 and 15 per cent, which aligns with acceptable global standards,” she said, emphasizing the administration’s commitment to ending estimated billing, improving revenue assurance, and building an auditable, nationwide smart meter ecosystem.
(Independent)
