FEC approves N68.7bn for power projects in universities, rural communities

The federal executive council (FEC) has approved contracts worth N68.7 billion for two power projects aimed at delivering reliable electricity to selected universities, teaching hospitals, and rural businesses across the country.

Adebayo Adelabu, the minister of power, spoke on Thursday while briefing journalists after the FEC meeting presided over by President Bola Tinubu in Abuja.

The minister said the contract approvals reflect the administration’s commitment to power sector reform and consistent electricity supply to key national 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,” he said.

Adelabu said the first project involves the engineering, procurement, and construction of the energising education programme through the Rural Electrification Agency’s (REA) special intervention fund for infrastructure development.

He said the initiative aims to provide “reliable and good-quality electricity” to federal universities and their teaching hospitals, thereby relieving them of the burden of high energy costs.

Adelabu described the lack of dependable electricity in some institutions as having reached “crisis level,” often resulting in blackouts and industrial actions due to the inability to afford the available power.

The minister noted that the new investment is designed to “complement the World Bank financing in order to accelerate deployment across other institutions in the country.”

He referenced previous successful installations, including the University of Abuja, which now runs efficiently on solar energy, and a 12-megawatt (MW) system powering both the University of Niger and its teaching hospital.

Other institutions with completed projects include Usmanu Danfodiyo University, Sokoto, with around 8 MW installed; the Nigerian Defence Academy, which operates a 2.6 MW solar system; and the Federal University of Agriculture, Makurdi.

The latest FEC nod is expected to cover eight additional universities and their teaching hospitals.

They include the University of Lagos, Ahmadu Bello University, Zaria; Obafemi Awolowo University, Ile-Ife; University of Nigeria, Nsukka; University of Ibadan (including University College Hospital); the University of Calabar; and Federal University Wukari.

Adelabu said the projects are expected to be completed within seven to nine months.

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

FG TO PROVIDE ELECTRICITY ACCESS TO RURAL COMMUNITIES

The second contract approved at the FEC meeting targets the deployment of renewable energy infrastructure to the REA’s agricultural centres of excellence projects.

Adelabu said the project will extend electricity access to underserved communities while promoting the productive use of solar power in rural enterprises.

“This is not limited to just lighting up the households,” he said.

“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 minister said the initiative will provide solar-powered processing equipment to small and medium-scale businesses in rural areas, enabling “cluster processing of agricultural produce and productive use, especially by micro and small enterprises.”

He added that the government is enabling rural communities to live better lives at home, while also supporting them to be more productive and improve their economic wellbeing.

The contracts come with a three-month implementation timeline and include 7.5 percent value-added tax (VAT) within the N68.7 billion total budget.