- FG will spend N100bn in Q2 2025 on solarising public institutions, reducing generator and diesel costs.
- AfDB’s $1.1bn loan will provide electricity to 5 million Nigerians by 2026 and $200m to power 500,000 by 2025.
- REA secured $750m from the World Bank and AfDB for rural electrification, with key projects like the 12MW Maiduguri plant nearing completion.
The Federal Government will spend N100 billion in Q2 2025 to solarise public institutions under the National Public Sector Solarisation Initiative (NPSSI). President Bola Tinubu directed this move to reduce the high cost of generators and diesel in public offices.
At the Mission 300 Africa Energy Summit in Tanzania, Tinubu secured a $1.1 billion loan from the African Development Bank (AfDB) to provide electricity to 5 million Nigerians by 2026. The Nigeria Electrification Project will also receive $200 million to power 500,000 people by the end of 2025. “As President, I am committed to prioritising energy access,” Tinubu said.
Vice President Kashim Shettima urged the Rural Electrification Agency (REA) to accelerate efforts toward universal power access and work with state governors through the National Economic Council (NEC) to electrify rural areas.
The REA secured a $750 million grant from the World Bank and AfDB for rural electrification. Speaking in Abuja, REA Managing Director Abba Aliyu highlighted the agency’s largest-ever 2025 budget, which focuses on solarising public institutions. He stressed the need to cut public sector spending on generators and diesel, which drain government funds.
Aliyu explained that REA’s funding sources are international development agencies, the electricity market, and grants. He mentioned that the agency has received a $750 million grant for major projects, including a 12MW plant in Maiduguri that is set for completion soon. The plant will serve the University of Maiduguri, its teaching hospital, and the state’s water treatment plant.
REA also launched the National Electrification and Strategic Implementation Plan (NESIP) to support the government’s vision of sustainable energy. The plan aims to improve coordination between state governments and boost energy access across Nigeria.
Public institutions like hospitals and universities have faced electricity challenges due to unpaid bills. The University of Nigeria, Nsukka, owes N600 million to the Enugu Electricity Distribution Company (EEDC), while the University College Teaching Hospital, Ibadan, owes N400 million to the Ibadan Electricity Distribution Company (IEDC). These debts resulted in disconnections, forcing many institutions to rely on expensive generators.
President Tinubu’s directive focuses on ensuring public institutions receive uninterrupted power by the end of 2025 as part of broader electricity reforms.
In another effort, Power Minister Adebayo Adelabu sought support from the Japan International Cooperation Agency (JICA) for the Distributed Access through Renewable Energy Scale-up Project (DARES). This World Bank-backed programme aims to expand electricity access to 17.5 million Nigerians, especially in rural areas.
The $750 million initiative intends to stimulate economic growth through renewable energy. During his visit to Japan, Adelabu met with stakeholders to explore co-financing options that could attract over $1 billion in private capital, further advancing Nigeria’s energy goals.
The Tinubu administration strives to improve power supply and provide reliable electricity across Nigeria through global partnerships and innovative strategies.