FG Okays N68.7bn For Power Project In Varsities, Small Businesses

The Federal Government has approved contracts worth ₦68.7 billion to boost electricity supply to universities, teaching hospitals, and rural-based enterprises, in what officials describe as a strategic push to overhaul Nigeria’s ailing power sector.

Minister of Power, Chief Adebayo Adelabu, disclosed the development on Thursday while briefing journalists after the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu at the Presidential Villa in Abuja.

According to Adelabu, the approval covers two major power initiatives under the Ministry of Power and the Rural Electrification Agency (REA), aimed at expanding access to renewable energy in both educational institutions and underserved rural areas.

“This government is committed to revitalizing Nigeria’s power infrastructure, particularly in critical sectors that directly affect national development,” the minister said.

One of the approved projects involves engineering, procurement, and construction works under the Energising Education Programme — a federal initiative aimed at reducing electricity costs in universities and teaching hospitals by deploying solar power infrastructure.

Adelabu revealed that the fresh funding, under the Special Intervention Fund for Infrastructure, will support installations in eight more federal universities and their teaching hospitals, including the University of Lagos, University of Nigeria, Nsukka; University of Ibadan, Ahmadu Bello University, Zaria; Obafemi Awolowo University, Ile-Ife; University of Calabar, Federal University Wukari, and the University College Hospital, Ibadan.

He noted that the programme would address what he described as a “power crisis” in many institutions, some of which currently operate under frequent blackouts or prohibitive energy costs.

“Some of these institutions can no longer afford the energy tariffs around them,” he said. “This intervention will change that reality and ensure uninterrupted electricity for education and healthcare delivery.”

He added that the new funds would complement similar solar power projects already executed in other universities with support from the World Bank — citing successful installations at the University of Abuja, Usmanu Danfodiyo University Sokoto, and the Nigerian Defence Academy, among others.

The universities project is expected to be completed within seven to nine months.

The second approval targets Nigeria’s agricultural heartlands, focusing on rural areas not connected to the national electricity grid. The project will deploy renewable energy systems to power agricultural processing hubs and rural households.

Adelabu explained that the intervention will equip Agricultural Centres of Excellence across various communities with solar-powered machinery, enabling small and medium enterprises (SMEs) to process farm produce more efficiently.

“This initiative is not just about lighting homes,” the minister said. “It’s about productive use — powering equipment that can add value to agricultural output, enhance livelihoods and stimulate rural economies.”

The rural power projects are expected to be delivered within three months, with the entire ₦68.7 billion allocation inclusive of 7.5% value-added tax (VAT).

Chief Adelabu emphasized that both interventions align with the Tinubu administration’s broader vision to reform Nigeria’s power landscape and ensure reliable electricity for economic growth.

“Our universities will never be the same again,” he declared. “And our rural communities will begin to see tangible improvements in both domestic and productive power use.”

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