THE Federal Government’s ambitious plan to provide stable electricity to federal universities and tertiary hospitals across Nigeria has suffered a major setback following the non-release of funds allocated in the 2025 Appropriation Act.
Although about N300 billion was earmarked in the 2025 budget for a special energy intervention programme, findings reveal that no funds have been released, resulting in zero implementation of the project announced last year.
Confirming the development, the Special Adviser on Media to the Minister of Power, Bolaji Tunji, disclosed that the initiative has stalled due to the absence of budgetary releases.
“Zero funding has been released for the 2025 budget for the project, so there has been no progress on the project,” Tunji said when asked about the status of the proposed intervention.
The intervention was conceived to address persistent electricity shortages in critical public institutions, particularly teaching hospitals and federal universities, many of which rely heavily on diesel generators to sustain essential operations.
The Federal Government had announced plans to deploy solar hybrid and renewable energy solutions to ensure uninterrupted power supply in these institutions. The initiative was expected to significantly reduce operational costs, improve service delivery, and promote clean energy use.
The N300bn allocation was publicly disclosed by the Chairman of the House Committee on Appropriation, Abubakar Bichi, during the inauguration of a solar hybrid project at Aminu Kano Teaching Hospital, Kano.
Bichi described the initiative as part of President Bola Tinubu’s broader effort to end recurring power outages in critical sectors.
“This intervention is designed to guarantee uninterrupted power for hospitals and universities so that doctors can save lives and students can study without disruption,” he had said.
He further explained that the Energy Commission of Nigeria would collaborate with relevant agencies to ensure implementation, while also commending the Minister of Innovation, Science and Technology, Uche Nnaji, for supporting the initiative.
According to Bichi, the proposal gained momentum during deliberations on the 2025 appropriation bill after Chief Medical Directors of teaching hospitals raised concerns about soaring electricity costs.
In November 2024, the Chief Medical Director of the University of Maiduguri Teaching Hospital reportedly disclosed that some facilities were spending as much as N200 million monthly on diesel and electricity to power critical equipment.
The matter was escalated to the leadership of the National Assembly and subsequently presented to President Tinubu, who directed that funds for solar hybrid projects be included in the 2025 budget.
Eventually, about N300bn was provided to support electricity supply in federal universities and tertiary hospitals nationwide. Listed beneficiaries included:
Aminu Kano Teaching Hospital
Bayero University Kano
Murtala Muhammad Specialist Hospital
Nasarawa Hospital
University College Hospital, Ibadan
University of Ibadan
University of Lagos
Obafemi Awolowo University, Ile-Ife
University of Nigeria, Nsukka
Ahmadu Bello University, Zaria
However, nearly one year after the allocation, the project has yet to commence at most of these institutions.
At the University College Hospital, Ibadan, the Public Relations Officer, Funmi Adetuyibi, confirmed that although the institution is listed as a beneficiary, no mini-grid has been installed.
“We are on the list, but the mini grid is not yet on the ground,” she said.
Similarly, the Chief Medical Director of the Lagos University Teaching Hospital, Prof. Wasiu Adeyemo, said while preliminary assessments had been conducted, the project had not begun.
“They came for some assessments, but up until now, nothing has happened. I guess the process is still on. That’s how far,” Adeyemo stated.
There was no official response from Obafemi Awolowo University as of press time.
The spokesperson of the Federal Ministry of Health and Social Welfare, Alaba Balogun, clarified that the ministry had not launched any power-related project and directed inquiries to the Rural Electrification Agency under the Federal Ministry of Power.
The delay comes amid rising electricity tariffs and subsidy removals affecting institutions placed on Band A feeders in 2024.
Following tariff reviews, electricity bills for many teaching hospitals reportedly tripled. Some institutions were said to be paying up to N300 million monthly, compared to less than N100 million before the review.
In response to public outcry, the Federal Government approved a 50 per cent subsidy in August 2024. However, institutions continue to struggle with high electricity costs, and implementation of the subsidy remains unclear.
Nigeria currently has 84 Federal Tertiary Hospitals, according to LUTH’s Chief Medical Director, all of which face similar energy challenges.
The stalled project reflects broader budget implementation challenges under the current administration. Despite the passage of large budgets since 2023, including the 2025 Appropriation Act, actual execution has often lagged due to weak revenue inflows, rising debt servicing obligations, and liquidity constraints.
Official data indicate that a significant portion of annual budgets is consumed by debt servicing and recurrent expenditure, leaving limited fiscal space for capital releases. As a result, many Ministries, Departments, and Agencies have recorded partial or zero releases for capital projects.
Budget analysts note that while appropriation signals policy intent, implementation depends on cash backing from the Ministry of Finance and the Budget Office of the Federation.
With no funds released so far, stakeholders fear that the ambitious N300bn intervention could remain on paper, while hospitals and universities continue to rely on costly diesel generators and face recurring blackouts.
As institutions grapple with unstable electricity supply and rising operational costs, pressure is mounting on the Federal Government to release the funds and fast-track the long-promised solar mini-grid initiative.