The Benue State Government has commenced plans for a $4 billion (₦5.556 trillion) hydropower project in Makurdi, a major energy initiative expected to significantly boost electricity supply and provide irrigation capacity across the state.
The proposed project, projected to generate 1,650 megawatts of electricity, was disclosed by the Executive Secretary and Chief Executive Officer of the Benue Investment Promotion Agency (BENIPA), Dr. Johnpaul Kpenkaan, during a briefing with newsmen on Tuesday. It forms part of Governor Hyacinth Alia’s broader efforts to strengthen infrastructure and create the energy foundation required to support industrial and economic development in Benue State.
Reliable electricity is critical to industrialisation, and the Makurdi Hydropower Project could become a major driver of the state’s industrial transformation. With improved power supply, Benue could attract and sustain more industries, particularly in agro-processing, manufacturing, mechanised agriculture, cold storage, food processing and other productive sectors. This is especially important for a state with enormous agricultural potential, as improved electricity could support the establishment of processing industries that transform raw produce into finished products within the state, strengthening the economic chain from farming through processing, manufacturing, storage, transportation and markets. The project is also expected to support job creation, expand investment opportunities and increase economic activity.
The hydropower initiative could complement ongoing efforts to attract large-scale investments in agriculture, agro-processing, energy and infrastructure. Industrial investors require dependable electricity, and a major power project in Makurdi could strengthen Benue’s attractiveness as an investment destination while supporting the development of industrial clusters. The irrigation component could further strengthen agricultural production by enabling more reliable farming and linking it directly to processing and industrial value chains.
Dr. Kpenkaan also disclosed that BENIPA facilitated investment commitments valued at approximately $4.55 billion across 12 major public-private partnership and structured investment transactions in 2025. He further highlighted progress on the proposed $250 million National Food City Complex in the Otukpo axis, with a wider footprint extending towards Obi and Ado Local Government Areas. Being developed in partnership with Rexzodeneh Group Limited under a Design, Build, Operate and Transfer (DBOT) model, the project has advanced through the signing of a PPP agreement, land and community engagement processes, financial close and the awarding of an access-road contract.
The development of major projects such as the National Food City and the proposed Makurdi Hydropower Project points to a broader strategy of connecting energy, agriculture, processing, infrastructure and investment to accelerate Benue’s economic transformation. If successfully developed, the Makurdi Hydropower Project could become one of the major infrastructure pillars supporting the state’s ambition to move beyond primarily agricultural production toward greater industrial capacity.
