FG Proposes N30bn for Solar Mini-Grids, Inverters in 2026 Budget
- The federal government proposed N30.34bn for solar mini-grids and inverters in the 2026 budget
- Funds are allocated to MDAs for powering government facilities, schools and selected communities
- The State House and National Centre for Technology Management are the biggest spenders, with N7bn each
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has proposed spending about N30.34 billion on solar mini-grids, inverters and related renewable energy solutions for ministries, departments and agencies (MDAs) in the 2026 budget, Daily Trust reported.
Source: Getty Images
According to an analysis of the proposed budget, the funds are meant to provide alternative power for government facilities, schools and some communities across the country, as Nigeria continues to face frequent power outages and repeated collapses of the national electricity grid.
Breakdown
The breakdown shows that the State House is the single largest spender, with a proposal of N7 billion for a solar mini-grid to electrify key infrastructure within the seat of power.
Similarly, the National Centre for Technology Management in Ile-Ife plans to spend N7 billion on the construction and installation of sustainable clean energy projects in selected communities, partly aimed at addressing security concerns.
The Agricultural Research Council of Nigeria also proposed N3.5 billion for eco-friendly solar mini-grids to power selected communities in the South-South and South-East zones to support productivity.
Several other agencies made provisions for solar projects. The Nigerian Building and Road Research Institute (NBRRI), Lagos, earmarked N1.26 billion for solar power generators for the David Umahi Federal University of Health Sciences in Ebonyi State, while the National Productivity Centre proposed N1.05 billion for mini-grids in schools within Zamfara Central Senatorial District.
NBRRI also plans to spend another N1.05 billion on a solar-powered mini-grid system at its Abuja headquarters. In addition, the National Space Research and Development Agency proposed N910 million for a 2.5MW solar power plant to serve its ground station and antenna hub in Abuja.
The Office of the Head of the Civil Service of the Federation budgeted N700 million to upgrade its solar power system to a mini-grid, while the Nigeria Police Academy, Wudil, Kano, allocated N700 million for a 500kW solar system for cadet hostels and administrative buildings.
Other allocations include N700 million by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) for a national MSME green and renewable energy initiative, as well as N700 million by the National Productivity Centre for solar power at a cancer centre in Ebonyi State.
Several institutions across states such as Adamawa, Zamfara, Gombe, Delta, Rivers, Ebonyi, Yobe and Oyo also made provisions ranging from N140 million to N490 million for solar mini-grids, renewable energy installations and rural electrification projects.
Concerns over impact on national grid
Experts have warned that the growing shift by government agencies and large institutions away from the national grid could lead to revenue losses for electricity distribution companies and further strain the power sector.
The move comes amid a wider trend of heavy electricity users, including manufacturers, turning to captive power and mini-grids due to the unreliability of grid supply. Many households are also investing in solar home systems to reduce dependence on public power.
Industry observers note that the exit of major consumers could increase costs for those still connected to the grid, as electricity tariffs are typically lower when more users share the burden.
Source: Getty Images
Call to bring industries back to the grid
Speaking on the issue, the Executive Director of PowerUp Nigeria, Adetayo Adegbemle, urged the federal government to prioritise policies that will bring industries and manufacturers back to the national grid.
According to Adegbemle, Nigeria cannot achieve affordable electricity or meaningful industrial growth without reintegrating large-scale consumers into the grid system.
He said manufacturers currently spend billions of naira annually on self-generated power, costs that are eventually transferred to consumers through higher prices of goods.
Citing reports that manufacturers spend over N45 trillion yearly on alternative power, Adegbemle stressed the need for incentives and reforms that make grid electricity reliable and attractive to industrial users.
He also criticised the growing focus on decentralised power solutions, warning that abandoning the national grid in favour of isolated systems could make electricity more expensive in the long run.
Adegbemle further called for a review of the Nigerian Electricity Act to ensure all states remain connected to the national grid, which he described as the most efficient way to transmit large volumes of power at lower cost.
On metering, he faulted existing federal schemes, advocating private sector-led meter franchising to improve efficiency and accountability.
He also expressed concern over recent tariff cuts in some states, describing them as unfriendly to investors if not backed by clear funding plans.
While acknowledging government efforts to introduce cost-reflective tariffs for some customers, Adegbemle said removing subsidies entirely would be necessary to attract long-term investment and strengthen the power sector.
FG signs MoU to accelerate solar distribution in public sectors
Legit.ng earlier reported that the National Public Sector Solarisation Initiative (NPSSI) was recently introduced after a memorandum of understanding was signed by the Ministry of Finance Incorporated (MOFI), the Infrastructure Corporation of Nigeria (InfraCorp), the Budget Office, and the Rural Electrification Agency (REA).
The goal of NPSSI is to accelerate the installation of distributed solar energy systems across vital public sector facilities, such as government buildings, schools, hospitals, and security stations.
The NPSSI represents an important step toward Nigeria's clean energy transition and the localisation of renewable infrastructure, according to Abba Aliyu, managing director of REA, who spoke about the project.
Source: Legit.ng
