The Federal Government has announced plans to introduce electricity tariffs for public institutions benefiting from solar power projects to ensure the infrastructure is properly maintained and remains sustainable.
The plan was disclosed on Thursday in Abuja during the launch of the Renewable Assets Management Company (RAMCO) by the Rural Electrification Agency (REA).
Speaking at the event, the Managing Director of REA, Aliyu Abba Abubakar, said the establishment of RAMCO was prompted by concerns about the deterioration of earlier solar projects despite the significant benefits they provided to beneficiary institutions.
He explained that while the projects provided free electricity and helped institutions save billions of naira that had previously been spent on diesel, the lack of sustainable maintenance arrangements had undermined their long-term viability.
According to him, RAMCO will not operate primarily as a revenue-generating company but as an emergency funding mechanism to finance repairs and maintenance when renewable energy installations develop faults, thereby reducing reliance on government funding.
“In RAMCO, we are building an institution that learns, improves and continues regardless of who occupies the leadership position,” Abubakar said.
He added that the company would manage publicly financed renewable energy assets, engage competent operators, meter and bill electricity consumption, collect payments, maintain sustainability reserves and ensure transparent reporting.
Abubakar said beneficiary institutions would now be required to contribute towards the sustainability of the projects by paying for the electricity they consume.
He described the arrangement as a redirection of part of the funds institutions would otherwise spend on expensive and unreliable power towards maintaining the assets that provide them with reliable electricity.
The REA boss disclosed that Nigeria had committed about N263 billion to solar-hybrid power generation under the Energising Education Programme (EEP), covering 22 federal universities and three teaching hospitals.
He said about 82 megawatts of capacity had been deployed since 2017, while more than 150MW was currently under construction.
However, he noted that an assessment of seven sites delivered under EEP Phase I found that only three remained in good or usable condition, largely due to the absence of sustainable maintenance arrangements.
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The Minister of Power, Joseph Tegbe, said the tariff would be set at a sustainable rate that balances further deployment with the long-term maintenance of existing projects.
Tegbe also disclosed that the government was conducting technical audits and working to increase electricity wheeling capacity from about 5,000MW to 6,500MW by the end of 2026 and 8,000MW by the end of 2027.
The Minister of State for Health, Dr Iziaq Salako, and the Minister of Education, Dr Maruf Alausa, welcomed the initiative, saying it would help guarantee sustainable electricity supply to health and tertiary institutions.
Alausa said at least 15 universities had already been solarised, stressing that the major challenge was no longer the construction of renewable energy infrastructure but ensuring that existing assets were properly operated and maintained.
“The challenge is no longer building infrastructure, it is ensuring that these assets are properly operated and maintained,” he said.
