The Federal Government has allocated N100 billion in the 2025 budget to install solar grids in public institutions, which aim to cut costs by reducing spending on diesel, generator purchases, and maintenance. The initiative will help redirect funds from energy expenses to other sectors of the economy.
Addressing Energy Costs with Solar Grids
The Federal Government of Nigeria has allocated N100 billion in the 2025 budget to install solar mini-grids in public institutions across Nigeria. This initiative is part of the National Public Sector Solarisation Initiative, which is designed to reduce the cost of governance and improve energy supply.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, confirmed this plan during an interview on Channels Television’s The Morning Brief on Tuesday. He explained that the government aims to cut costs by reducing spending on diesel, generator purchases, and maintenance.
Aliyu noted that ministries, departments, and agencies (MDAs) spend a significant portion of their budgets on fuel and generator repairs. By installing solar mini-grids, the government intends to redirect these funds to other sectors of the economy. “This initiative is designed to reduce the cost of governance,” Aliyu said. “N100 billion has been allocated for it. We are going to use this funding to solarise public institutions.”
The project will focus on universities and teaching hospitals, with several institutions already selected for the first phase. These include the University of Ibadan and its teaching hospital, the University of Lagos, Obafemi Awolowo University, the University of Nigeria, Nsukka, and Ahmadu Bello University.
Aliyu highlighted the case of the University of Maiduguri, where a 12-megawatt hybrid mini-grid is already supplying electricity to both the university and its teaching hospital. The project also provides power to Maiduguri’s only water treatment plant, thus demonstrating the wider benefits of renewable energy investments.
Timeline and Implementation Strategy
The REA has set an ambitious timeline for the implementation of the project. Aliyu stated that within six months, at least two out of eight planned mini-grid projects for universities and one teaching hospital will be completed. Additionally, the agency plans to commission 60 mini-grids and deploy 40 interconnect grids to enhance power reliability in public institutions.
“In the next six months, I will tell you that I have started deploying mini-grids in five more universities,” he said. “I will also have completed at least two of the eight mini-grids we are installing.”
The decision to prioritise solar mini-grids follows recent protests over unreliable electricity supply. Students of the University of Ibadan recently staged a demonstration over a 100-day power outage at the University College Hospital (UCH). In response, Minister of Power Adebayo Adelabu assured them that the government would restore electricity soon.
Aliyu confirmed that UCH is among the first five institutions set to receive solar mini-grids under the new initiative. The project aims to ensure that hospitals and universities no longer experience prolonged power outages due to reliance on the national grid or expensive fossil fuel generators.
Expanding Renewable Energy Access
Beyond universities and hospitals, key government agencies in Abuja and other locations will also be included in the solarisation project. The government’s goal is to ensure that public institutions have access to sustainable energy sources instead of costly and unreliable fossil fuels.
Aliyu emphasised that the move aligns with Nigeria’s broader renewable energy goals. The REA has already completed interventions in seven universities and two teaching hospitals, providing them with hybrid mini-grids that guarantee a stable power supply.
“We have now started a new phase, covering eight universities and one teaching hospital,” he said. “The commissioning of this phase will begin as early as April this year.”
The Federal Government’s investment in solar mini-grids represents a significant shift towards sustainable energy in Nigeria’s public sector. By reducing diesel costs and generator dependence, the initiative promises long-term savings and improved electricity supply. As the REA accelerates implementation, universities, hospitals, and government agencies will benefit from a cleaner and more reliable energy future.