The Federal Government is planning to introduce new electricity charges for universities, teaching hospitals and other public institutions benefiting from government-funded renewable energy projects, Minister of Power Joseph Tegbe has disclosed.
The proposed charges are part of efforts to create a sustainable funding model for renewable-energy projects and ensure that the systems installed by the government can be properly maintained and expanded.
The development comes as the Federal Government steps up its use of solar and other renewable-energy solutions to provide more reliable electricity to critical public institutions.
More than 15 universities already have solar-powered systems, while renewable-energy projects are also being deployed to improve electricity supply to healthcare facilities.
Government seeks sustainable funding
Tegbe said the government cannot continue to fund renewable-energy infrastructure without establishing mechanisms to recover part of the cost of operating and maintaining the systems.
The proposed arrangement is therefore expected to create a payment structure for institutions benefiting from the projects, while helping to keep the facilities operational over the long term.
The plan is particularly significant for universities and teaching hospitals, where reliable electricity is essential for laboratories, medical equipment, research facilities, classrooms and other critical services.
Focus on reliable power
The Federal Government has recently emphasised that improving electricity supply remains a priority, alongside expanding renewable energy and strengthening the national grid.
In early August, Tegbe said the administration had no immediate policy to increase electricity tariffs generally, stressing that its priority was to improve service delivery, expand metering and ensure consumers pay for the electricity they actually use.
The proposed charges for institutions using government-funded renewable-energy systems should therefore be viewed separately from a general increase in electricity tariffs.
Hospitals also targeted for renewable energy expansion
The renewable-energy programme extends beyond universities.
Under the Nigeria Power for Health Initiative, the Federal Government is targeting reliable electricity for at least 30 per cent of Nigeria’s health facilities by the end of 2027.
The Rural Electrification Agency has already provided solar power systems to about 100 hospitals, while the government is working with private-sector partners to expand healthcare electrification.
Reliable electricity is expected to reduce hospitals’ dependence on diesel generators and improve the operation of essential medical equipment, laboratories, vaccine storage and emergency services.
What the new charges could mean
For universities and teaching hospitals, the planned charges could create an additional operating cost. However, the government appears to be positioning the policy as a way of ensuring that renewable-energy projects remain financially sustainable rather than deteriorating after installation.
The success of the programme will ultimately depend on how the tariffs are structured, how affordable they are for public institutions and whether the revenue generated is transparently reinvested into maintenance and expansion.
As Nigeria continues to face challenges in electricity generation and distribution, the Federal Government is increasingly looking to renewable energy as an important part of the country’s long-term power strategy.
