Federal Government Yet to Disburse N300 Billion Solar Power Funds for Universities and Hospitals
The federal government of Nigeria has not released the N300 billion allocated in the 2025 budget for a solar power project aimed at federal universities and teaching hospitals, resulting in zero implementation progress. Most beneficiary institutions have confirmed that no funds have been disbursed, leaving the initiative stalled.
Budget Allocation and Implementation Delays
According to findings, no cash backing has been provided for this solar power intervention despite its inclusion in the 2025 Appropriation Act. The project was designed to address persistent electricity shortages through solar hybrid and renewable energy systems. Bolaji Tunji, Special Adviser on Media to the Minister of Power, confirmed that there has been no progress due to the absence of budgetary releases. He explained that since no funds have been disbursed this year, implementation has not commenced.
Background and Purpose of the Initiative
The initiative was introduced to tackle electricity shortages in public tertiary institutions and teaching hospitals, many of which rely heavily on diesel generators for daily operations. About N300 billion was earmarked in the 2025 budget to fund solar hybrid and renewable energy systems. Abubakar Bichi, Chairman of the House Committee on Appropriation, announced this allocation during the inauguration of a solar hybrid project at Aminu Kano Teaching Hospital. He stated that the intervention aligns with President Bola Tinubu's efforts to reduce power disruptions in critical sectors such as health and education, aiming to ensure uninterrupted electricity supply to support healthcare delivery and academic activities.
Bichi added that the funds would prioritize renewable energy installations in institutions providing essential services, with expectations to lower energy costs, improve efficiency, and promote cleaner energy use. The proposal gained traction during 2025 budget deliberations after chief medical directors raised concerns over escalating electricity and diesel costs, with some hospitals spending up to N200 million monthly on power.
Beneficiary Institutions Await Implementation
Institutions listed as beneficiaries include Aminu Kano Teaching Hospital, Bayero University Kano, Murtala Muhammad Specialist Hospital, Nasarawa Hospital, University College Hospital (UCH) Ibadan, University of Ibadan, University of Lagos, Obafemi Awolowo University, University of Nigeria Nsukka, and Ahmadu Bello University, Zaria. However, checks indicate that work has yet to begin in several facilities.
Funmi Adetuyibi, Public Relations Officer of UCH, confirmed that although the hospital is on the list of beneficiaries, no mini-grid has been installed. Similarly, Prof. Wasiu Adeyemo, Chief Medical Director of Lagos University Teaching Hospital (LUTH), said preliminary assessments were conducted but implementation has not started, noting that the project remains at the process stage.
Broader Budget Execution Concerns
The delay occurs amid broader challenges affecting budget implementation in Nigeria. Although large budgets have been passed in recent years, capital releases have often lagged due to revenue shortfalls, rising debt servicing obligations, and liquidity constraints. Official data show that a significant portion of annual budgets is spent on recurrent expenditure and debt servicing, leaving limited fiscal space for capital projects. As a result, several Ministries, Departments, and Agencies have recorded partial or zero releases for projects captured in the budget.
Budget analysts note that while appropriation reflects policy intention, actual implementation depends on cash availability, making projects in sectors such as power, health, and education vulnerable to delays. With no funds released so far, hospitals and universities continue to contend with unstable electricity supply and high energy bills, relying largely on diesel generators to sustain operations.
Context of Nigeria's Power Sector
This situation unfolds as Nigeria's grid-connected power plants operate far below their installed capacity, with frequent blackouts affecting households and businesses. According to figures from the Nigerian Electricity Regulatory Commission (NERC), power plants with a combined installed capacity of 13,625 megawatts generated an average of about 4,421 megawatts in January 2026, indicating plant availability at just 36%. This highlights the urgent need for alternative energy solutions like the proposed solar projects.
