LAGOS - Nigeria has approved the construction of a 1,650 megawatt (MW) hydropower plant at a cost of $3 billion, making it one of the single biggest power projects in the country, the vice president's spokesperson said on Tuesday.

The project would be funded under a public private partnership arrangement and located in the north central state of Benue, Laolu Akande, vice president Yemi Osinbanjo's spokesperson, said in a statement.

Akande did not say when construction would start.

Increasing power supply is expected to top the agenda of the successor to President Muhammadu Buhari, who steps down after elections next year.

Africa's biggest economy struggles with low power output and limited transmission infrastructure, leaving many households and businesses reliant on diesel-powered generators.

Authorities said last week the government would grant a concession to operate its $1.3 billion China-funded Zungeru hydropower plant that will come on stream in the first quarter of next year.

(Reporting by Felix Onuah Writing by MacDonald Dzirutwe Editing by Mark Potter)