Over the years, sedimentation has posed a great danger to the storage capacity of hydropower reservoirs. Good understanding of the transport system and hydrological processes in the dam is very crucial to its sustainability. Under optimal functionality, the Shiroro dam in Northern Nigeria can generate ∼600 MW, which is ideally sufficient to power about 404,000 household. Unfortunately, there have not been reliable monitoring measures to assess yield in the upstream, where sediments are sourced into the dam. In this study, we applied the Soil and Water Assessment Tool (SWAT) to predict the hydrological processes, the sediment transport mechanism and sediment yield between 1990 and 2018 in Kaduna watershed (32,124 km2) located upstream of the dam. The model was calibrated and validated using observed flow and suspended sediment concentration (SSC) data. Performance evaluation of the model was achieved statistically using Nash-Sutcliffe (NS), coefficient of determination (r2) and percentage of observed data (p-factor). SWAT model evaluation using NS (0.71), r2 (0.80) and p-factors of 0.86 suggests that the model performed satisfactorily for streamflow and sediment yield predictions. The model identified the threshold depth of water (GWQMN.gw) and base flow (ALPHA_BF.gw) as the most sensitive parameters for streamflow and sediment yield estimation in the watershed. Our finding showed that an estimated suspended sediment yield of about 84.1 t/ha/yr was deposited within the period under study. Basins 67, 71 and 62 have erosion prone area with the highest sediment values of 79.4, 75.1 and 73.8 t/h respectively. Best management practice is highly recommended for the dam sustainability, because of the proximity of erosion-prone basins to the dam.