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FG Launches N100bn Solar Initiative to Power Public Institutions and Cut Diesel Costs

Posted on August 11, 2025 By Africa Digest News No Comments on FG Launches N100bn Solar Initiative to Power Public Institutions and Cut Diesel Costs

Written By: Faith Jemosop

The Federal Government has unveiled a N100 billion solarisation programme to equip public institutions with clean energy systems, aiming to slash the massive costs of diesel generation, enhance energy reliability, and reduce the country’s carbon footprint.

Known as the National Public Sector Solarisation Initiative (NPSSI), the programme will be implemented by the Rural Electrification Agency (REA) in collaboration with various ministries, state governments, and private developers. It targets schools, hospitals, security facilities, and government offices across the nation, especially those in rural or underserved areas.

Immediate Significance

Nigeria’s public institutions have long relied on diesel-powered generators due to the unreliable national grid. This dependency is expensive and environmentally damaging, with fuel and maintenance costs draining public budgets. By transitioning to solar power, the government expects to achieve significant operational savings, ensure consistent power supply for essential services, and align with its broader clean energy commitments.

Key Details of the Initiative

  • Budget Allocation: N100 billion (initial phase)
  • Implementing Agency: Rural Electrification Agency (REA)
  • Technology Mix: Rooftop solar photovoltaic systems, battery storage units, and solar mini-grids
  • Targeted Sites: Universities, teaching hospitals, primary health centres, security posts, government offices, and basic education facilities
  • Goals: Reduce diesel use, lower maintenance costs, improve service uptime, create jobs in installation and maintenance, and cut greenhouse gas emissions

Rollout Strategy

The NPSSI will be deployed in phases, beginning with critical public institutions that have the highest operational costs from diesel use. These include teaching hospitals, where uninterrupted power is essential for surgeries and life-support equipment, and universities, where consistent electricity is vital for research and digital learning.

The first phase will focus on hundreds of institutions nationwide, with systems designed to meet most of their daily energy needs. By integrating battery storage, these facilities will have reliable power at night and during grid outages.

Nigeria’s Energy Landscape

Nigeria generates far less electricity per capita than other comparable economies, and frequent grid collapses mean public facilities often operate in “island mode” using generators. While solar adoption has been growing in private homes and businesses, largely through donor-funded projects and commercial mini-grids, there has been little large-scale investment in solarising public sector facilities.

The NPSSI represents one of the most ambitious attempts to address this gap. If fully implemented, it could be a turning point for energy sustainability in the country’s public service sector.

Also read: New Research Project COM-PRES Aims to Ensure Fair Distribution of Renewable Energy Benefits in South Africa

Benefits for the Public Sector

  1. Cost Savings:
    Diesel procurement and generator maintenance are among the largest recurrent expenses for many public institutions. Solar systems, once installed, require minimal fuel costs and have far lower long-term maintenance demands.
  2. Improved Service Delivery:
    Hospitals will have continuous power for critical care. Schools will be able to run labs, digital classrooms, and night study programmes without disruption. Security facilities will have uninterrupted surveillance and communication systems.
  3. Environmental Gains:
    Replacing diesel generators with solar reduces carbon emissions and local air pollution. This aligns with Nigeria’s climate action targets and international commitments.
  4. Job Creation:
    The initiative will generate employment opportunities for engineers, electricians, installers, and maintenance personnel.
  5. Energy Independence:
    Public institutions will rely less on the national grid and fuel markets, insulating them from power outages and diesel price fluctuations.

Challenges and Risks

While the NPSSI has strong potential, its success will depend on how effectively it is executed. Key challenges include:

  • Procurement Transparency:
    Without open and competitive bidding processes, there is a risk of inflated costs, substandard equipment, and project delays.
  • Operation and Maintenance (O&M):
    Solar installations need regular servicing and battery replacements. If O&M contracts and funding are not clearly defined, systems could fall into disrepair.
  • System Sizing and Design:
    Poorly designed systems could either be too small to meet needs or oversized and wasteful. Proper energy audits and load assessments are essential before installation.
  • Monitoring and Evaluation:
    The programme must have clear performance indicators , such as diesel savings, uptime improvement, and number of institutions connected, to track impact and justify investment.

Stakeholder Reactions

REA officials have described the NPSSI as a flagship government effort to “lower the cost of governance” by reducing recurring diesel expenses. Private solar companies and industry associations have welcomed the move, calling it a boost for the renewable energy sector, but emphasise the importance of competitive procurement and quality assurance.

Civil society organisations have also expressed optimism but warn that the initiative should not be used for political patronage. They stress that transparency, independent monitoring, and community engagement will be crucial to prevent corruption and ensure sustainability.

Also read: Afreximbank Backs Nigeria, Zimbabwe and Malawi Energy Projects

In the coming months, the REA is expected to release detailed procurement notices, specifying technical requirements and timelines. Pilot projects in select universities and hospitals will serve as proof-of-concept sites, demonstrating potential diesel savings and operational improvements.

If these early phases are successful, the government plans to expand the initiative nationwide, potentially attracting additional funding from development banks, climate finance mechanisms, and private investors.

Energy

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