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Firm News > Blog > Power > FG to End Free Electricity for Universities, Teaching Hospitals, Introduces Tariff
Power

FG to End Free Electricity for Universities, Teaching Hospitals, Introduces Tariff

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Last updated: August 26, 2026 9:13 pm
Firmnews
2 months ago
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The Federal Government has announced plans to introduce electricity tariffs for universities and teaching hospitals benefiting from its renewable energy projects across the country.

Minister of Power, Joseph Tegbe, disclosed this on Wednesday in Abuja during the unveiling of the Renewable Asset Management Company (RAMCO), a government-owned entity established to manage and sustain renewable energy infrastructure.

Tegbe explained that the proposed tariffs would enable the government to maintain renewable energy facilities deployed in public institutions, stressing that sustainability had remained a major challenge in the management of public assets.

According to him, while successive governments have invested significantly in infrastructure development, inadequate maintenance has often resulted in the deterioration of such facilities.

He said the establishment of RAMCO was designed to change that approach and ensure that renewable energy assets remain functional over the long term.

“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,” Tegbe said.

The minister recalled that some universities had recently visited him to appreciate the government for providing them with free electricity for two years.

“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 added.

Also speaking, the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, backed the proposed tariff, saying beneficiary institutions must contribute to the sustainability of the infrastructure provided by the government.

Aliyu disclosed that the Federal Government, through the REA, had deployed 82 megawatts of solar-hybrid power since 2017 under the Energising Education Programme.

He said the initiative currently covers 22 federal universities and three teaching hospitals.
According to him, the beneficiary institutions are expected to pay for the electricity they consume as part of measures to ensure the continued operation and maintenance of the facilities.

“Government has funded this asset. REA has built them. Beneficiary institutions must contribute to sustaining them by paying for the electricity they consume,” Aliyu stated.

The proposed tariff will effectively end the free electricity arrangement previously enjoyed by some institutions under the renewable energy programme.

The initiative was introduced to improve power supply to tertiary institutions and teaching hospitals, while reducing their dependence on conventional sources of electricity.

Beneficiary institutions include Ahmadu Bello University, Zaria; the University of Nigeria, Nsukka; and the Federal University, Wukari, Taraba State, alongside three teaching hospitals.

The event was attended by the Minister of Education, Dr Maruf Tunji Alausa; Minister of State for Health, Dr Iziaq Adekunle Salako, and other senior government officials.

Tegbe said RAMCO would provide a sustainable framework for managing renewable energy infrastructure and ensure that government investments in the sector continue to deliver value to Nigerians.

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