A N300 billion federal initiative to provide stable solar hybrid electricity to all federal universities and teaching hospitals has stalled due to the non-release of allocated funds in the 2025 budget, leaving critical health and education facilities dependent on costly diesel generators.
The project, announced last year and funded in the 2025 Appropriation Act, aimed to end persistent power outages in tertiary institutions by installing renewable energy mini-grids. However, the Special Adviser on Media to the Minister of Power, Bolaji Tunji, confirmed that “zero funding has been released for the 2025 budget for the project, so there has been no progress.”
The intervention was designed following appeals from hospital administrators, some of whom reported monthly electricity costs exceeding N200 million. House Committee on Appropriation Chairman Abubakar Bichi had stated the allocation would guarantee uninterrupted power for hospitals and universities, cutting operational costs and promoting clean energy.
Despite being listed as beneficiaries, major institutions including University College Hospital, Ibadan, and Lagos University Teaching Hospital report no on-ground activity. LUTH’s Chief Medical Director, Prof. Wasiu Adeyemo, noted assessment visits occurred but implementation has not begun. The Federal Ministry of Health has directed inquiries to the Rural Electrification Agency, the implementing parastatal under the Ministry of Power.
The delay reflects broader systemic challenges in budget execution. Official data indicates a significant portion of federal revenue is consumed by debt servicing and recurrent expenditure, constraining capital releases. This pattern has resulted in several Ministries, Departments, and Agencies recording partial or zero disbursements for capital projects, even when funds are appropriated. Budget analysts emphasize that appropriation signals policy intent, but actual project delivery hinges on cash availability from the Ministry of Finance.
With tariff increases in 2024 already tripled electricity bills for many institutions—before a subsequent, largely unfulfilled, 50 percent subsidy promise—the absence of the solar project exacerbates operational crises. Hospitals and universities continue to rely on expensive, polluting diesel generators, underscoring the urgent need for the government to release the allocated funds and fast-track the renewable energy intervention. The initiative’s future now depends on the Ministry of Finance’s cash backing and the Rural Electrification Agency’s execution capacity.
