FEC approves ₦68.7bn for power projects in varsities, hospitals

From Juliana Taiwo-Obalonye, Abuja

The Federal Executive Council meeting presided over by President Bola Tinubu has approved ₦68.7 billion in contracts to drive two key power projects focused on delivering reliable electricity to selected universities, teaching hospitals, and rural businesses as part of the sector’s transformation agenda.

Power Minister Adebayo Adelabu revealed the approvals on Thursday, July 31, 2025, while briefing State House Correspondents at the end of the meeting in Abuja.

Adelabu highlighted that the approvals demonstrate the administration’s resolve to reform the power sector and ensure a consistent power supply to vital institutions.

“This administration is bent on ensuring the transformation in our power sector and improving supply of power to two key sectors for national existence,” Adelabu said.

The first project involves awarding contracts for engineering, procurement, and construction of the Energising Education Programme through the Rural Electrification Agency’s Special Intervention Fund for Infrastructure Development.

Adelabu explained the initiative’s purpose is to “relieve our educational institutions and teaching hospitals of the burden of huge energy costs” while guaranteeing “reliable and good-quality electricity” to them.

He noted the lack of dependable electricity has fostered a “crisis level” in certain universities and hospitals, sometimes causing blackouts and industrial actions due to the inability to afford the available power.

Recalling similar renewable energy projects completed with World Bank support, Adelabu said the new funding aims to “complement the World Bank financing in order to accelerate deployment across other institutions in the country.”

He cited successful installations such as the University of Abuja, where solar power now operates efficiently, and the University of Niger’s 12-megawatt setup serving both the university and its teaching hospital.

Other examples given were Usmanu Danfodiyo University, Sokoto (about 8 megawatts installed), the Nigerian Defence Academy (2.6-megawatt solar system), and the Federal University of Agriculture, Makurdi.

The recent FEC nod covers eight additional universities and their teaching hospitals: University of Lagos, Ahmadu Bello University, Zaria, Obafemi Awolowo University, Ile-Ife, University of Nigeria, Nsukka, University of Ibadan (including University College Hospital), University of Calabar, and Federal University, Wukari.

Adelabu indicated project implementation would span approximately seven to nine months.

“This is another case of ensuring that universities enjoy uninterrupted electricity,” he said. “Our universities will never be the same again.”

The second contract approval pertains to procuring renewable energy infrastructure for the Rural Electrification Agency’s Agricultural Centres of Excellence Projects.

The minister emphasised this effort will extend power sector improvements to rural areas lacking reliable grid access.

“This is not limited to just lighting up the households,” Adelabu clarified. “It also includes ensuring productive use of equipment powered by solar sources. The intention is to light up our rural households and power our rural businesses—especially those involved in processing agricultural produce.”

The project will supply solar-powered processing equipment for small and medium enterprises in rural locales, fostering “cluster processing of agricultural produce and productive use, especially by micro and small enterprises.”

In total, the contracts valued at ₦68.7 billion include 7.5% VAT, with a three-month delivery timeline for the rural power projects.

“This government is empowering rural communities to enjoy a good livelihood in their homes and also to put their effort into productivity to improve their prosperity,” Adelabu concluded.