Nigeria Government Allocates $66M USD for Solar Mini-Grids in Universities and Teaching Hospitals

The Federal Government of Nigeria has proposed a $66.65M USD (₦100 billion) allocation in the 2025 budget to install solar mini-grids in selected federal universities, teaching hospitals, and government institutions. The initiative, under the National Public Sector Solarisation Initiative of the Federal Ministry of Power, aims to provide reliable, cost-effective, and climate-friendly electricity while reducing dependence on diesel generators and lowering operational costs for public institutions.

According to Abba Aliyu, Managing Director of the Rural Electrification Agency (REA), the agency will begin implementation once the budget is approved and signed into law by President Bola Tinubu. The solar mini-grids will be deployed across key institutions, including

• University of Lagos (UNILAG)
• University of Ibadan (UI)
• University College Hospital (UCH)
• Obafemi Awolowo University (OAU)
• University of Nigeria, Nsukka (UNN)
• Ahmadu Bello University (ABU)

The REA MD emphasized that the government analyzed the high costs associated with diesel procurement and generator use in public institutions, prompting the decision to invest in solar-based alternatives.

This initiative builds on previous REA projects, which have already delivered hybrid solar mini-grids to several universities and teaching hospitals across Nigeria. Aliyu highlighted the successful deployment of a 12-megawatt hybrid mini-grid at the University of Maiduguri, which powers both the university and its teaching hospital, with additional capacity to support the only water treatment plant in Maiduguri.

As part of the new phase, REA plans to commission eight additional mini-grids in universities and one in a teaching hospital. Aliyu stated that within the next six months, at least two out of these eight mini-grids will be completed, and the agency will initiate the process for deploying 40 interconnect grids to enhance energy reliability.

Beyond universities and teaching hospitals, the National Public Sector Solarisation Initiative will also extend to key government agencies and parastatals in Abuja and other parts of the country.

The Nigerian government has identified solar energy as a key component of its energy transition strategy, with an increasing focus on sustainable power solutions to drive economic growth, reduce emissions, and improve public sector efficiency. Once implemented, the ₦100 billion solar mini-grid initiative is expected to enhance energy security, reduce electricity costs, and provide stable power for critical institutions across Nigeria.