Connect with us

Business

Blackouts: N300bn electricity power lifeline for hospitals, varsities hits snag

Published

on

The Federal Government’s ambitious plan to provide stable electricity to federal universities and tertiary hospitals has suffered a major setback following the non-release of funds allocated in the 2025 budget, The PUNCH reports.

Although over N300bn was earmarked in the 2025 Appropriation Act for the special energy intervention, no funds have been released, resulting in zero implementation progress on the project announced last year.

Confirming the development, the Special Adviser on Media to the Minister of Power, Bolaji Tunji, said the initiative had stalled due to the absence of budgetary releases.

When asked about the status of the proposed special energy project for teaching hospitals and universities, Tunji said, “Zero funding has been released for the 2025 budget for the project, so there has been no progress on the project.”

The intervention was conceived to address persistent power shortages in critical public institutions, particularly teaching hospitals and universities, many of which depend heavily on diesel generators to sustain operations.

The PUNCH recalls that the Federal Government had set aside about N300bn in the 2025 budget to deliver stable and sustainable electricity to these institutions, largely through solar hybrid and renewable energy solutions.

The allocation was earlier announced by the Chairman, House Committee on Appropriation, and member representing Bichi Federal Constituency, Abubakar Bichi, during the inauguration of a solar hybrid intervention project at the Aminu Kano Teaching Hospital, Kano.

Bichi said the initiative formed part of the President Bola Tinubu administration’s efforts to end recurring power outages in critical sectors, especially healthcare and tertiary education.

According to him, “This intervention is designed to guarantee uninterrupted power for hospitals and universities so that doctors can save lives and students can study without disruption.”

He explained that the allocation would support the installation of renewable energy systems, with priority given to institutions delivering essential services to Nigerians.

See also  Inflation above 30% in 19 states, FCT despite national easing

Bichi added that beyond improving power stability, the projects were expected to cut high electricity costs, enhance operational efficiency, and promote clean and sustainable energy use in public institutions.

He also commended the Minister of Innovation, Science and Technology, Uche Nnaji, for what he described as leadership in translating the government’s vision into actionable projects, noting that the Energy Commission of Nigeria would work with relevant agencies to ensure timely delivery.

The lawmaker further praised President Tinubu for approving special budgetary provisions aimed at addressing long-standing electricity challenges in tertiary hospitals and universities nationwide.

Providing background, Bichi said the proposal gained momentum during deliberations on the 2025 appropriation bill after Chief Medical Directors of teaching hospitals across the country raised concerns.

He recalled that in November 2024, the CMD of the University of Maiduguri Teaching Hospital, among others, highlighted the crippling cost of electricity and diesel, with some facilities spending up to N200m monthly to power critical equipment.

“The issue was discussed with the leadership of the National Assembly and subsequently escalated to Mr President, who directed that funds for solar hybrid projects be included in the 2025 budget,” Bichi said.

He disclosed that about N300bn was eventually provided in the budget to support electricity supply in all federal universities and tertiary hospitals, listing Aminu Kano Teaching Hospital, Bayero University Kano, Murtala Muhammad Specialist Hospital, and Nasarawa Hospital among beneficiaries.

However, with no releases made so far, stakeholders fear the ambitious intervention may remain on paper, as hospitals and universities continue to struggle with unstable electricity supply and rising energy costs.

Budget implementation under the current administration has been constrained by funding shortfalls, delayed cash releases, and competing fiscal pressures, leading to four separate budgets running concurrently.

Although the Federal Government has consistently passed large budgets since 2023, including the 2025 Appropriation Act, execution has often trailed projections, largely due to weak revenue inflows, rising debt servicing obligations, and liquidity constraints.

See also  Nigeria risks future mineral imports, geophysicists warn

Official data show that a significant share of annual budgets is consumed by debt servicing and recurrent expenditure, leaving limited fiscal space for capital releases. Consequently, many Ministries, Departments, and Agencies have recorded partial or zero releases for capital projects, even where funds were duly appropriated by the National Assembly.

In several cases, projects captured in the budget remain at the planning or announcement stage, with implementation dependent on subsequent cash backing by the Ministry of Finance and the Budget Office of the Federation.

Budget analysts note that while appropriation signals policy intent, actual execution depends on cash availability, making projects in sectors such as power, health, education, and infrastructure vulnerable to delays when revenues fall short.

The slow pace of implementation heightens the risk of rolling over unexecuted projects into subsequent fiscal years.

Beneficiaries await projects

One year after the N300bn allocation, the Federal Government’s solar mini-grid project for hospitals and tertiary institutions has yet to commence. Findings from listed beneficiaries reveal the absence of mini-grids at their facilities, showing a return to the status quo of paying high electricity bills.

In 2024, following the upgrade and movement of institutions and hospitals to Band A feeders, the removal of subsidies in areas under Band A feeders, and the consequent rise in electricity tariffs, bills for many health and academic institutions tripled, making it difficult for them to meet obligations.

The PUNCH reported that some tertiary hospitals paid as much as N300m per month to cover electricity bills, up from less than N100m before the tariff review. Following outcry from the management of teaching hospitals and universities grappling with high electricity costs, the Federal Government approved a 50 per cent subsidy in August 2024.

Yet, in 2025, public hospitals and educational institutions continued to face high electricity tariffs, with the promise of relief largely unfulfilled. While there appears to be silence on the implementation of the electricity subsidy, the government announced the solarisation of hospitals and tertiary institutions projects.

See also  FG woos Diaspora Nigerians for investments, knowledge transfer

Listed beneficiaries of the solar mini-grids include University College Hospital, Ibadan, University of Ibadan, University of Lagos, Obafemi Awolowo University, Ile-Ife, University of Nigeria, Nsukka, and Ahmadu Bello University, Zaria.

According to the Chief Medical Director at the Lagos University Teaching Hospital, Idi-Araba, Mushin, Prof Wasiu Adeyemo, there are 84 Federal Tertiary Hospitals in the country.

Findings reveal that University College Hospital, Ibadan, a listed beneficiary, has yet to benefit from the project. The Public Relations Officer at the university, Funmi Adetuyibi, said, “We are on the list, but the mini grid is not yet on the ground.”

Also, LUTH’s CMD confirmed that the initiative was budgeted for in 2025 but has yet to begin at the hospital. “They came for some assessments, but up until now, nothing has…I guess the process is still on. That’s how far,” Adeyemo said.

It is unclear what the situation is at Obafemi Awolowo University, Ile-Ife, as calls to the Public Relations Officer were unanswered as of press time.

Responding to enquiries, the spokesperson of the Federal Ministry of Health and Social Welfare, Alaba Balogun, advised that queries be redirected to the Rural Electrification Agency, a parastatal under the Federal Ministry of Power. He noted that the ministry has neither initiated nor launched any power-related project.

With the delays, hospitals and universities continue to grapple with unstable electricity supply and rising operational costs, leaving many reliant on expensive diesel generators and exposed to recurring blackouts, underscoring the urgent need for the government to release the funds and fast-track the solar mini-grid initiative.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Nigerian states’ revenues rise 93%, but education spending drops — World Bank

Published

on

The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

See also  Over 4,600 tricycles, 100,000 vehicles run on CNG in Nigeria – Official

He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Nigeria promotes investment without building production capacity – UNILAG don

Published

on

A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

See also  NNPCL spends N17.5tn securing fuel pipelines, others in 12 months

Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Import waivers, insecurity end two-year agric trade surplus

Published

on

Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

See also  Over 4,600 tricycles, 100,000 vehicles run on CNG in Nigeria – Official

Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

See also  Airlines struggle as losses hit N150bn in two months

Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending