The Federal Government has announced plans to introduce electricity tariffs for 25 tertiary institutions and teaching hospitals benefiting from government-funded renewable energy projects across Nigeria.
Minister of Power, Joseph Tegbe, disclosed the development on Wednesday, August 26, 2026, during the unveiling of the Renewable Asset Management Company (RAMCO) in Abuja.
Tegbe said the new tariff regime is aimed at ensuring the sustainability and proper maintenance of renewable energy infrastructure deployed by the government, rather than allowing the facilities to deteriorate after commissioning.
According to the minister, some beneficiary universities have enjoyed free electricity from the government-funded renewable energy projects for about two years. He said that period had now come to an end as the government moves towards a model that requires beneficiaries to contribute to the upkeep of the assets.
Tegbe said the government had historically been effective at constructing public infrastructure but less successful in ensuring that such assets remain operational over the long term.
He explained that RAMCO had been established to provide a more sustainable management structure for renewable energy assets.
The Federal Government’s renewable energy programme covers 22 federal universities and three teaching hospitals. The Rural Electrification Agency (REA) said it has deployed about 82 megawatts of solar-hybrid generation capacity across the institutions since 2017 under the Energising Education Programme.
REA Managing Director, Abba Aliyu, said beneficiary institutions must contribute towards sustaining the infrastructure from which they receive electricity.
He explained that while the government financed the construction and deployment of the facilities, the institutions would now be expected to pay for the electricity they consume.
The move represents a shift from a model in which the government provides renewable energy infrastructure without direct cost recovery to one designed to generate funds for operations, maintenance and eventual replacement of critical components.
BusinessDay reported that RAMCO will be responsible for activities including metering, billing and revenue collection associated with the renewable energy assets. The company is also expected to engage operators to maintain the facilities and establish reserves for the eventual replacement of equipment such as batteries and inverters.
Officials said the tariff is intended primarily as a sustainability mechanism rather than a profit-making measure. The objective is to ensure that renewable energy facilities remain functional after the initial government investment has been made.
The development comes amid broader efforts by the Federal Government to improve electricity supply to public institutions and reduce their dependence on diesel generators and unreliable grid power.
Among institutions benefiting from the programme are Ahmadu Bello University, Zaria; the University of Nigeria, Nsukka; and the Federal University, Wukari, Taraba State, alongside three teaching hospitals.
The government believes a sustainable payment and maintenance structure could help preserve existing renewable energy investments while providing a foundation for further expansion of solar-hybrid power systems in public institutions.
The introduction of tariffs is also expected to place greater emphasis on accountability in the management of renewable energy infrastructure. Under the new arrangement, beneficiary institutions would contribute financially towards the continued operation of facilities that were previously provided at no direct electricity cost.
The Federal Government’s decision comes as Nigeria seeks to expand renewable energy deployment while addressing longstanding challenges surrounding the maintenance of public infrastructure.
Officials have argued that installing renewable energy systems without establishing a reliable mechanism for their maintenance could ultimately undermine the value of the government’s investment.
The RAMCO model is therefore expected to link the provision of renewable electricity with revenue collection and asset management, ensuring that funds are available to keep the facilities operational.
The government has also indicated that the renewable energy assets could eventually provide a platform for attracting private-sector investment into Nigeria’s clean-energy market.
The announcement has generated interest among stakeholders in the education and health sectors, particularly because universities and teaching hospitals will now have to account for electricity costs associated with the government-funded renewable energy systems.
However, the government maintains that the objective is to protect the investments already made in renewable energy and ensure that beneficiaries continue to receive reliable electricity.
Tegbe’s announcement effectively signals the end of the free-power arrangement for the affected institutions and the beginning of a cost-recovery approach to government-owned renewable energy assets.
The Federal Government is expected to work with relevant agencies and beneficiary institutions on the implementation of the tariff arrangements as RAMCO begins operations.
The initiative is part of a broader attempt to move Nigeria’s renewable energy sector beyond the construction of solar infrastructure towards long-term sustainability, maintenance and commercial viability.
