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FG Moves to Introduce Electricity Tariffs for Universities, Teaching Hospitals Using Renewable Energy Assets
FG Moves to Introduce Electricity Tariffs for Universities, Teaching Hospitals Using Renewable Energy Assets
The Federal Government is set to introduce electricity tariffs for tertiary institutions and teaching hospitals benefiting from completed renewable energy projects, signalling a major shift from the era of free electricity supply to a model designed to ensure the long-term sustainability of public energy infrastructure.
The Minister of Power, Joseph Tegbe, disclosed the plan on Wednesday, August 26, 2026, during the unveiling of the state-owned Renewable Asset Management Company (RAMCO) in Abuja.
Under the proposed arrangement, 25 tertiary institutions and teaching hospitals across Nigeria that have been enjoying electricity from Federal Government-funded renewable energy assets will be required to begin paying for the power they consume.
According to the Minister, the introduction of tariffs is necessary to protect, maintain and sustain the renewable energy infrastructure already deployed across the country. He stressed that Nigeria must move beyond the practice of investing heavily in public assets without putting sustainable structures in place to preserve them.
“It is a new dawn. We are very good at building public assets but poor at sustaining them. RAMCO offers a different model to renewable energy. Nigeria has lived too long with embarrassing electricity.
“Some universities came to me on a courtesy visit to thank me after using free light for two years. I told them, thank you; the pro bono is over. We are coming to commission, and you will pay tariff. The same thing with teaching hospitals,” he stated.
The planned policy represents a significant transition for beneficiary institutions, many of which have enjoyed uninterrupted or improved electricity through solar hybrid systems funded and deployed by the Federal Government.
The government believes that introducing a payment structure will create a more sustainable system, ensuring that the facilities are properly maintained and continue to deliver reliable electricity over the long term.
The Managing Director of the Rural Electrification Agency, REA, Abba Aliyu, also reaffirmed the Federal Government’s position, stressing that institutions benefiting from the renewable energy projects must begin contributing to the maintenance and sustainability of the assets.
He explained that since 2017, the Federal Government, through the REA, has deployed 82 megawatts, MW, of solar hybrid generation capacity across 22 federal universities and three teaching hospitals under the Energising Education Programme.
The massive investment was designed to address the persistent challenge of unreliable electricity in Nigeria’s higher institutions and healthcare facilities, providing cleaner and more dependable power for learning, research, medical services and other critical operations.
However, Aliyu maintained that the government cannot continue to bear the entire burden of sustaining the infrastructure after making substantial investments in their development.
“Government has funded this asset. REA has built them. Beneficiary institutions must contribute to sustaining them by paying for the electricity they consume,” he said.
The establishment of RAMCO is expected to provide a new framework for managing renewable energy assets owned by the government, with greater attention to maintenance, operational efficiency and financial sustainability.
The development could also mark a turning point in the management of public infrastructure, particularly in the power sector, as the Federal Government seeks to ensure that billions invested in renewable energy projects do not deteriorate due to inadequate maintenance and funding.
Among the public institutions benefiting from the Federal Government’s renewable energy deployment are Ahmadu Bello University, Zaria; the University of Nigeria, Nsukka; and the Federal University, Wukari, Taraba State, as well as three teaching hospitals.
The event was attended by the Minister of Education, Dr Maruf Tunji Alausa; the Minister of State for Health, Dr Iziaq Adekunle Salako; and other stakeholders.
With the planned introduction of tariffs, beneficiary institutions are now expected to transition from free access to government-funded renewable electricity to a system where users contribute financially to keeping the lights on, maintaining the facilities and securing the future of the clean energy investments.
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