Hydropower host communities demand 10% royalty amid concession of assets

The Hydroelectric Power Producing Areas Development Commission (HYPPADEC), a body comprising host communities of hydropower plants, has asked the federal government through the Bureau of Public Enterprises (BPE) for a 10 percent royalty package from the concession of the plants.

Abubakar Sadiq Yelwa, HYPPADEC managing director, said this during a visit to the BPE office on Wednesday.

Yelwa said the visit was to find ways to get the 10 percent royalty accruable to it as enshrined in the law setting up HYPPADEC, so that the commission could develop host communities where the hydro plants are located.

He also said the visit to BPE became necessary to mutually agree on the way forward on the royalty issue as mere correspondences on the matter would not suffice.

Yelwa called for a tripartite meeting involving the BPE, HYPPADEC and generating companies (GenCos) to mutually agree on the way forward on the matter.

Responding to the commission’s request for a 10 percent royalty, Alex Okoh, BPE director-general, said both agencies would look at possible ways to handle the issue noting that all revenues generated by the bureau in the sale of public assets were usually transmitted to the consolidated revenue fund (CRF) of the federal government.

Okoh, represented by Yunana Malo, BPE energy director, said the bureau will collaborate with HYPPADEC to better host communities of hydropower plants in the country.

He added that the BPE would ensure that operators of the hydropower plants execute their corporate social responsibility (CSR) for the benefit of the host communities.

In February, the federal government announced plans to concession about 36 national assets, including power-generating plants such as the Zungeru hydropower plant.

The major hydropower plants in Nigeria include Kainji power station, Jebba power station and Shiroro power station all located in Niger state.