Amid ongoing power outages and frequent collapses of the National Grid, the Federal Government plans to invest N30.34 billion on solar mini grids, inverters, and solar generators through its various Ministries, Departments, and Agencies (MDAs).
An analysis of the 2026 budget reveals that this funding is aimed at powering government facilities, educational institutions, and communities nationwide.
The allocation breakdown indicates that the State House is the largest spender, with N7 billion designated for solar mini grid installations to electrify essential infrastructure.
Furthermore, the National Centre for Technology Management in Ile Ife is set to spend N7 billion on sustainable clean energy solutions aimed at improving security in selected communities.
The Agricultural Research Council of Nigeria has set aside N3.5 billion to establish eco-friendly power systems via solar mini grids in targeted communities in the South/South and South East regions to enhance agricultural productivity.
Additionally, the Nigerian Building and Road Research Institute based in Lagos plans to allocate N1.26 billion for solar power generator installations at David Umahi Federal University of Health Sciences in Ebonyi State.
The National Productivity Centre has proposed an investment of N1.05 billion to introduce mini-grids at schools within the Zamfara Central Senatorial District.
Similarly, the Nigerian Building and Road Research Institute will use N1.05 billion for the creation of an Alternative Energy Source (Solar Powered Mini- grid System) at its headquarters in Abuja.
In a related initiative, the National Space Research and Development Agency intends to build a 2.5MW solar power plant, costing N910 million, to service its ground station and antenna hub. Meanwhile, the Office of the Head of the Civil Service of the Federation aims to upgrade its solar system to a mini- grid at a projected cost of N700 million.
The Nigeria Police Academy in Wudil, Kano, has allocated N700 million for a 500kw solar system for cadet hostels and administrative blocks. Additionally, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has earmarked N700 million for the National MSME Green and Renewable Energy Initiative.
Other significant proposals include N700 million from the National Productivity Centre for solar power lighting at the cancer center in David Umahi Federal University, N490 million from the Nigerian Stored Products Research Institute in Ilorin for solar mini-grids in selected Maiduguri locations, and N420 million from the College of Horticulture for a solar mini- grid in the Ganye Local Government Area of Adamawa State.
Furthermore, police formations and commands have budgeted N390.9 million for solar hybrid systems across selected states, while the Federal Ministry of Science, Technology and Innovation plans to invest N373.8 million for mini- grid installations in various locations in the South East.
Other agencies and institutions, including the Federal Co-Operative College and Nigeria Communication Satellite, have also proposed substantial investments in solar infrastructures.
The shift of these agencies towards solar energy may result in decreased revenue for electricity distribution companies, compounding current challenges facing the sector. Historically, many heavy power consumers, particularly in the manufacturing sector, are increasingly turning to mini grids and alternative on-site generation to circumvent the unreliable national grid.
Experts have raised concerns that this trend could lead to higher costs for those remaining connected to the grid, as the financial balance depends significantly on customer numbers.
To counter this trend, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, emphasizes the necessity for the government to facilitate the return of industries and manufacturers to the national grid. He argues that achieving affordable electricity is vital for Nigeria's economic growth and that without an influx of significant industrial users back into the grid, electricity costs will remain high.
Adegbemle also suggests that innovative policy reforms are essential to stabilize the power sector, advocating for an energy strategy that prioritizes integration of all states into a robust national grid as the most efficient means to distribute electricity economically.
He critiques reliance on small-scale renewable projects, warning they may not significantly decrease electricity prices or provide sufficient support for industrial requirements, highlighting the importance of a centralized, efficient electricity supply system for Nigeria’s future industrialization and job creation efforts.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!