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

Although over N300bn was earmarked in the 2025 Appropriation Act for the special energy intervention, no funds have been released, resulting in 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.

When asked about the status of the proposed special energy project for teaching hospitals and universities, Tunji said, “Zero funding has been released for the 2025 budget for the project, so there has been no progress on the project.”

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

The PUNCH recalls that 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, House Committee on Appropriation, and member representing Bichi Federal Constituency, Abubakar Bichi, during the inauguration of a solar hybrid intervention project at the Aminu Kano Teaching Hospital, Kano.

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

According to him, “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 explained that the allocation would support the installation of renewable energy systems, with priority given to institutions delivering essential services to Nigerians.

Bichi added that beyond improving power stability, the projects were expected to cut high electricity costs, enhance operational efficiency, and promote clean and sustainable energy use in public institutions.

He also commended the Minister of Innovation, Science and Technology, Uche Nnaji, for what he described as leadership in translating the government’s vision into actionable projects, noting that the Energy Commission of Nigeria would work with relevant agencies to ensure timely delivery.

The lawmaker further praised President Tinubu for approving special budgetary provisions aimed at addressing long-standing electricity challenges in tertiary hospitals and universities nationwide.

Providing background, Bichi said the proposal gained momentum during deliberations on the 2025 appropriation bill after Chief Medical Directors of teaching hospitals across the country raised concerns.

He recalled that in November 2024, the CMD of the University of Maiduguri Teaching Hospital, among others, highlighted the crippling cost of electricity and diesel, with some facilities 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 in the budget 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 struggle with unstable electricity supply and rising energy costs.

Budget implementation under the current administration has been constrained by funding shortfalls, delayed cash releases, and competing fiscal pressures, leading to four separate budgets running concurrently.

Although the Federal Government has consistently passed large budgets since 2023, including the 2025 Appropriation Act, execution has often trailed projections, largely due to weak revenue inflows, rising debt servicing obligations, and liquidity constraints.

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

In several cases, projects captured in the budget remain at the planning or announcement stage, with implementation dependent on subsequent cash backing by the Ministry of Finance and the Budget Office of the Federation.

Budget analysts note that while appropriation signals policy intent, actual execution depends on cash availability, making projects in sectors such as power, health, education, and infrastructure vulnerable to delays when revenues fall short.

The slow pace of implementation heightens the risk of rolling over unexecuted projects into subsequent fiscal years.

Beneficiaries await projects

One year after the N300bn allocation, the Federal Government’s solar mini-grid project for hospitals and tertiary institutions has yet to commence. Findings from listed beneficiaries reveal the absence of mini-grids at their facilities, showing a return to the status quo of paying high electricity bills.

In 2024, following the upgrade and movement of institutions and hospitals to Band A feeders, the removal of subsidies in areas under Band A feeders, and the consequent rise in electricity tariffs, bills for many health and academic institutions tripled, making it difficult for them to meet obligations.

The PUNCH reported that some tertiary hospitals paid as much as N300m per month to cover electricity bills, up from less than N100m before the tariff review. Following outcry from the management of teaching hospitals and universities grappling with high electricity costs, the Federal Government approved a 50 per cent subsidy in August 2024.

Yet, in 2025, public hospitals and educational institutions continued to face high electricity tariffs, with the promise of relief largely unfulfilled. While there appears to be silence on the implementation of the electricity subsidy, the government announced the solarisation of hospitals and tertiary institutions projects.

Listed beneficiaries of the solar mini-grids include University College Hospital, Ibadan, University of Ibadan, University of Lagos, Obafemi Awolowo University, Ile-Ife, University of Nigeria, Nsukka, and Ahmadu Bello University, Zaria.

According to the Chief Medical Director at the Lagos University Teaching Hospital, Idi-Araba, Mushin, Prof Wasiu Adeyemo, there are 84 Federal Tertiary Hospitals in the country.

Findings reveal that University College Hospital, Ibadan, a listed beneficiary, has yet to benefit from the project. The Public Relations Officer at the university, Funmi Adetuyibi, said, “We are on the list, but the mini grid is not yet on the ground.”

Also, LUTH’s CMD confirmed that the initiative was budgeted for in 2025 but has yet to begin at the hospital. “They came for some assessments, but up until now, nothing has…I guess the process is still on. That’s how far,” Adeyemo said.

It is unclear what the situation is at Obafemi Awolowo University, Ile-Ife, as calls to the Public Relations Officer were unanswered as of press time.

Responding to enquiries, the spokesperson of the Federal Ministry of Health and Social Welfare, Alaba Balogun, advised that queries be redirected to the Rural Electrification Agency, a parastatal under the Federal Ministry of Power. He noted that the ministry has neither initiated nor launched any power-related project.

With the delays, hospitals and universities continue to grapple with unstable electricity supply and rising operational costs, leaving many reliant on expensive diesel generators and exposed to recurring blackouts, underscoring the urgent need for the government to release the funds and fast-track the solar mini-grid initiative.