No More Free Light: Nigerian Universities and Hospitals Face Massive New Power Bills
Abuja, August 27, 2026 — Nigerian universities and teaching hospitals that have enjoyed free electricity from federal renewable energy projects are set to start paying tariffs, a move the Bola Tinubu administration says is essential to keep the facilities running but one that could push up student fees and patient costs.
Minister of Power Joseph Tegbe made the announcement on Wednesday in Abuja during the formal unveiling of the Renewable Asset Management Company (RAMCO). He told a gathering of stakeholders that the era of free power for the beneficiary institutions had ended.
“Some universities came to me on a courtesy visit to thank me after using free light for two years. I told them, thank you; the pro bono is over. We are coming to commission, and you will pay tariff. The same thing with teaching hospitals,” Tegbe said.
Why the Government Is Charging Now
The new charges will apply to electricity generated from government-funded renewable energy assets that have supplied 25 tertiary institutions and teaching hospitals.
Officials say the tariffs are needed to generate revenue for maintenance and long-term sustainability of the projects, which have historically suffered after commissioning due to poor upkeep.
Rural Electrification Agency (REA) Managing Director Abba Aliyu backed the decision, noting that the agency has deployed 82 megawatts of solar-hybrid generation across 22 federal universities and three teaching hospitals since 2017 under the Energizing Education Programme.
“Government has funded this asset. REA has built them. Beneficiary institutions must contribute to sustaining them by paying for the electricity they consume,” Aliyu stated.
He described the payments as a “sustainability tariff” rather than an entirely new burden, arguing that institutions would simply redirect part of what they previously spent on expensive diesel or grid electricity.
Among the known beneficiaries are Ahmadu Bello University, Zaria; the University of Nigeria, Nsukka; the Federal University, Wukari, in Taraba State; and three teaching hospitals.
What It Could Mean for Students and Patients
University administrators already face tight budgets. Higher electricity bills could force institutions to increase tuition and other charges to cover the new operational costs.
Teaching hospitals, which rely heavily on constant power for surgeries, laboratories, diagnostics, and intensive care, may pass on some of the expense to patients through higher service fees.
The development comes against a backdrop of long-standing power challenges in Nigeria’s public institutions.
Many universities and hospitals have depended on costly diesel generators when the national grid fails, making the solar hybrid plants a welcome relief when they first came online.
RAMCO: A New Model for Asset Management
The launch of RAMCO is intended to professionalize the management of these public renewable assets.
The company, incorporated under the Companies and Allied Matters Act with government interest held through the Ministry of Finance, Incorporated, will handle metering, billing, collection, operations, and maintenance.
Officials hope the model will prevent the familiar cycle of abandonment that has plagued many government infrastructure projects.
REA plans to complete valuation and technical assessments of existing assets, transfer them into the RAMCO framework, and work with the National Universities Commission, the Ministries of Education and Health, and the Budget Office to set transparent tariff and payment arrangements.
While government officials present the policy as a necessary step toward sustainability, the practical impact on already strained university budgets and hospital finances will be closely watched in the coming months.
For students and patients who have benefited from more reliable power, the shift from free supply to paid tariffs marks a clear end to an era of subsidized relief.
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