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Home Energy

FG’s N300bn Power Plan for Varsities, Teaching Hospitals Stalls Over Zero Funding Release

Victoria Emeto by Victoria Emeto
February 12, 2026
in Energy
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FG’s N300bn Power Plan for Varsities, Teaching Hospitals Stalls Over Zero Funding Release

The Federal Government’s plan to provide stable electricity to federal universities and tertiary hospitals has suffered a setback following the non-release of funds allocated for the project in the 2025 budget.

Although over N300bn was earmarked in the 2025 Appropriation Act for the special energy intervention, no funds have been released. As a result, there has been zero implementation progress on the project announced last year.

Confirming the development, the Special Adviser on Media to the Minister of Power, Bolaji Tunji, said the initiative had 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 special energy intervention for teaching hospitals and universities.

The intervention was conceived to address persistent power shortages in critical public institutions, particularly teaching hospitals and universities. Many of these institutions rely heavily on diesel generators to sustain operations.

The Federal Government had set aside about N300bn in the 2025 budget to deliver stable and sustainable electricity to these institutions, largely through solar hybrid and renewable energy solutions.

The allocation was earlier announced by the Chairman of the House Committee on Appropriation and member representing Bichi Federal Constituency, Abubakar Bichi, during the inauguration of a solar hybrid intervention project at Aminu Kano Teaching Hospital.

According to Bichi, the initiative formed part of President Bola Tinubu’s efforts to end recurring power outages in critical sectors such as healthcare and tertiary education.

“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 said.

Bichi explained that the allocation would support the installation of renewable energy systems, with priority given to institutions providing essential services.

He added that the projects were expected to reduce electricity costs, improve operational efficiency, and promote clean energy use in public institutions.

The lawmaker also commended the Minister of Innovation, Science and Technology, Uche Nnaji, noting that the Energy Commission of Nigeria would collaborate with relevant agencies to ensure timely delivery.

Providing background, Bichi said the proposal gained traction during deliberations on the 2025 appropriation bill after Chief Medical Directors of teaching hospitals raised concerns over rising electricity and diesel costs.

He recalled that in November 2024, the Chief Medical Director of the University of Maiduguri Teaching Hospital disclosed that some facilities were spending up to N200m monthly to power critical equipment.

“The issue was discussed with the leadership of the National Assembly and subsequently escalated to Mr President, who directed that funds for solar hybrid projects be included in the 2025 budget,” Bichi said.

He disclosed that about N300bn was eventually provided to support electricity supply in all federal universities and tertiary hospitals, listing Aminu Kano Teaching Hospital, Bayero University Kano, Murtala Muhammad Specialist Hospital, and Nasarawa Hospital among beneficiaries.

However, with no releases made so far, stakeholders fear the ambitious intervention may remain on paper as hospitals and universities continue to grapple with unstable electricity supply and rising energy costs.

Budget implementation under the current administration has faced constraints, including funding shortfalls, delayed cash releases, and competing fiscal pressures. Analysts note that while appropriation signals policy intent, actual execution depends on cash availability.

Official data show that a significant portion of annual budgets is consumed by debt servicing and recurrent expenditure, leaving limited fiscal space for capital projects. Consequently, several Ministries, Departments, and Agencies have recorded partial or zero releases for capital projects, even where funds were appropriated.

The slow pace of implementation raises concerns that unexecuted projects may be rolled over into subsequent fiscal years.

Tags: #Budget2025#NigeriaEconomy#PowerSector#TertiaryInstitutions
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