Nigeria Allocates N100 Billion for Solar Mini-Grids in Public Institutions Amid Mounting Energy Crisis

The Federal Government of Nigeria has allocated N100 billion for the installation of solar mini-grids in public institutions, a move aimed at addressing the country’s worsening power supply challenges and reducing the high cost of diesel and generator maintenance.

The initiative, known as the National Public Sector Solarization Initiative, is embedded in the 2025 budget and is expected to significantly cut government expenditure on electricity consumption, which has become a major financial burden on ministries, departments, and agencies (MDAs).

This was disclosed by the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, during an interview on Channels Television’s The Morning Brief on Tuesday.

“If you also check within the budget, you’ll see a new initiative of Mr. President, which was presented by the Honourable Minister of Power, called the National Public Sector Solarization Initiative—a new concept designed to reduce the cost of governance. A N100 billion has been allocated for it,” Aliyu stated.

Aliyu explained that once the 2025 budget is passed and signed into law by President Bola Tinubu, the REA will commence work on the project to ensure that government institutions have access to reliable, cost-effective, and environmentally friendly electricity.

The solar mini-grid initiative has been lauded as a potential solution to the persistent blackouts in government institutions, many of which have been disconnected by electricity distribution companies (DisCos) over unpaid bills.

Among the worst-hit institutions are medical facilities, where power supply disruptions have endangered lives. A striking example is the University College Hospital (UCH), Ibadan, which has been without electricity for over 100 days. The power crisis at UCH has crippled essential medical services, forcing patients to provide their own generators for any treatment requiring electricity.

Aliyu acknowledged the dire situation at UCH and noted that the hospital is among the key beneficiaries of the solar mini-grid project. He explained that UCH is part of five institutions selected for immediate intervention, alongside the University of Lagos, the University of Ibadan, Obafemi Awolowo University, the University of Nigeria, Nsukka, and Ahmadu Bello University.

With Nigeria’s power sector struggling to meet demand, institutions like universities and teaching hospitals have been forced to rely heavily on generators, leading to soaring operational costs.

Aliyu explained that the solar mini-grid deployment will prioritize hospitals and universities, ensuring uninterrupted electricity supply for critical operations. His agency plans to complete mini-grid projects for at least eight universities and one major teaching hospital within six months. In addition to this, sixty mini-grids will be commissioned across various public institutions, and forty interconnect grids will be deployed to enhance power reliability.

The Dire Need for Energy Reform in Government Institutions

For years, Nigeria’s public institutions have struggled with erratic power supply, forcing them to either operate under harsh conditions or divert significant portions of their budgets to diesel procurement and generator maintenance. Government data shows that MDAs spend billions of naira annually on energy costs, making it one of the largest overhead expenses in the federal budget.

“To address that, the funding is being provided for us to now solarize these institutions. That amount of expenditure in our national budget meant for diesel purchase, generator purchase, and repairs can be channeled to other relevant sectors of the Nigerian economy,” Aliyu said.

The crisis has been most severe in medical institutions, where power outages jeopardize the safety of patients. Surgical procedures and medical tests have been delayed or canceled due to a lack of electricity, while hospital costs have increased drastically as power shortages have driven up expenses for alternative energy sources.

The REA believes that solar mini-grids can permanently address these problems by providing stable and cost-effective power to hospitals, ensuring that life-saving treatments are not interrupted due to power failures.

The government’s decision to solarize public institutions is seen as a strategic response to Nigeria’s broader energy crisis, where the power supply remains grossly inadequate despite ongoing efforts to reform the electricity sector.

Aliyu highlighted successful past interventions by the REA, including the deployment of hybrid solar mini-grids to seven universities and two teaching hospitals. A notable example is the University of Maiduguri, where a 12-megawatt hybrid mini-grid has been installed. This system powers both the university and its teaching hospital, as well as Maiduguri’s only water treatment plant, showcasing the potential of solar energy to solve Nigeria’s public sector electricity crisis.

Can Solar Mini-Grids Solve Nigeria’s Public Sector Energy Woes?

The N100 billion solar mini-grid initiative has been widely welcomed, especially in sectors that have suffered from chronic power shortages. However, industry experts warn that successful implementation will require transparency, proper funding, and long-term maintenance strategies.

Despite the optimism surrounding the initiative, Nigeria’s history of abandoned energy projects raises concerns about sustainability. Many argue that without strict monitoring and accountability, the funds allocated for solarization could be mismanaged, leaving public institutions in the same dire situation.

Nevertheless, if fully implemented as planned, the initiative could significantly reduce government spending on energy, ensuring that hospitals and universities no longer rely on expensive diesel generators. It could also serve as a model for nationwide renewable energy adoption, potentially extending to residential and commercial sectors.