ABUJA: An Indian firm will set up the biggest hydroelectric power project in energy-starved northern Nigeria to generate 35 megawatts of electricity.
India's Skipper Group today signed a MoU with Kano state in this regard, Indian High Commission to Nigeria said.
"The project is the biggest hydroelectric power project in northern part of the nation and when completed in two years time, will be of immense benefit to the state," said Mahesh Sachdev, the Indian High Commissioner to Nigeria after signing of the MoU.
"The project will benefit water resources department in the state as well as the Manufacturers Association of Nigeria and help them stabilise their industries ailing due to power shortage," said Rabiu Kwankwaso, governor of Kano on the occasion.
"One the biggest challenges in the country is power and there is the need to devise ways of solving the problem as demonstrated in the signing of the MoU," he added.
The company will generate 10 megawatts electricity from Tiga Dam while the remaining 25 will come from Chellawa Gorge Dam.
Nigeria faces regular power shortage with some companies and private residences depending on diesel-powered generators.
The government of Nigeria has been encouraging foreign investors to invest in the sector to boost output.
Industrialists say low power supply in the oil-rich African country with a population of 150 million has led to high cost of production and hampered further investment.
At present, the country generates about 3000 to 4000 megawatts electricity.