FG Yet to Release N300bn Budgeted for Solar Power in Universities, Teaching Hospitals
- The federal government has not released the N300 billion allocated in the 2025 budget for a solar power project in universities and teaching hospitals
- Most of the listed beneficiary institutions have confirmed that no funds have been disbursed, resulting in zero implementation progress
- Budget implementation challenges, including revenue shortfalls and liquidity constraints, have contributed to delays in capital project releases
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has not released funds allocated for a proposed N300 billion solar power intervention for federal universities and teaching hospitals in the 2025 budget, stalling implementation of the project.
According to findings by The PUNCH, no cash backing has been provided for the initiative despite its inclusion in the 2025 Appropriation Act.
Source: UGC
Confirming the development, the Special Adviser on Media to the Minister of Power, Bolaji Tunji, said there has been no progress due to the absence of budgetary releases. He explained that since no funds have been disbursed for the project this year, implementation has not commenced.
Background to the intervention
The initiative was introduced to tackle persistent 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 for the institutions. The allocation was announced by the Chairman of the House Committee on Appropriation, Abubakar Bichi, during the inauguration of a solar hybrid project at Aminu Kano Teaching Hospital.
Bichi said the intervention aligned with President Bola Tinubu’s efforts to reduce power disruptions in critical sectors such as health and education. He stated that the plan was designed to ensure uninterrupted electricity supply in hospitals and universities to support healthcare delivery and academic activities.
The lawmaker added that the funds would prioritise renewable energy installations in institutions providing essential services. He also noted that the project was expected to lower energy costs, improve efficiency, and promote cleaner energy use.
According to him, the proposal gained traction during deliberations on the 2025 budget after chief medical directors raised concerns over escalating electricity and diesel costs. He recalled that some hospitals were spending up to N200 million monthly on power, prompting discussions with National Assembly leadership and subsequent approval for inclusion in the budget.
Beneficiaries yet to see 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.
The Public Relations Officer of UCH, Funmi Adetuyibi, confirmed that although the hospital is on the list of beneficiaries, no mini-grid has been installed.
Similarly, the Chief Medical Director of Lagos University Teaching Hospital (LUTH), Prof. Wasiu Adeyemo, said preliminary assessments were conducted but implementation has not started. He indicated that the project remains at the process stage.
Source: Facebook
Budget execution concerns
The delay comes amid broader challenges affecting budget implementation. 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.
Nigeria’s power plants operating far below capacity
Legit.ng earlier reported that the country’s grid-connected power plants are operating far below their installed capacity, even as households and businesses continue to experience frequent blackouts.
According to figures released by 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.
The data shows that plant availability stood at just 36%, indicating that nearly two-thirds of Nigeria’s power generation infrastructure was not operational during the month.
Source: Legit.ng
