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.
Minister of Power Adebayo Adelabu disclosed this at a media briefing after the FEC meeting presided over by President Bola Tinubu in Abuja on Thursday.
The contracts are designed to provide “reliable and good-quality electricity” to federal universities and their teaching hospitals, thereby relieving them of the burden of high energy costs.
According to Adelabu, the lack of dependable electricity in some institutions has reached “crisis level,” often resulting in blackouts and industrial actions due to the inability to afford available power.
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.
The initiative aims to complement the World Bank financing and accelerate deployment across other institutions in the country.
Adelabu cited 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.
The latest FEC approval is expected to cover eight additional universities and their teaching hospitals, including the University of Lagos, Ahmadu Bello University, Zaria, and Obafemi Awolowo University, Ile-Ife, among others.
The projects are expected to be completed within seven to nine months. Adelabu noted that the initiative will not only provide lighting but also ensure productive use of equipment powered by solar sources.
“This is another case of ensuring that universities enjoy uninterrupted electricity. Our universities will never be the same again,” he added.
Persecondnews reports that the initiative also aims to support rural businesses, particularly those involved in processing agricultural produce.
The government 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.
Adelabu noted 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.
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