Nigeria: FG to Spend N30bn On Solar Grids, Inverters

blackout, load shedding
27 January 2026

As Nigerians continue to face blackout from low supply of electricity and frequent collapse of the National Grid, Ministries, Department and Agencies (MDAs) have proposed to spend N30.34bn on solar mini grids, inverters and solar generators.

Analysis of the 2026 budget showed that the sum is proposed to be spent to power government facilities, schools and communities across the country.

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A breakdown showed the top spender is the State House with plans to spend N7bn for solar mini grid to electrify infrastructures in the seat of power.

Also, the National Centre for Technology Management, Ile Ife, wants to spend N7bn for the construction & installation of sustainable clean energy across selected communities to ease insecurity.

Similarly, the Agricultural Research Council of Nigeria wants to construct and provide eco-friendly power supply through mini grid solar to power selected communities to enhance productivity in the south/south and south east of the federation at the cost of N3.5bn

The Nigerian Building and Road Research Institute, Lagos, says it would spend N1.26bn to buy and install solar power generators for David Umahi Federal University of Health Sciences, Ebonyi State.

The National Productivity Centre wants to spend N1.05bn to provide Mini-grid to schools in Zamfara Central Senatorial District.

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The Nigerian Building and Road Research Institute, Lagos, stills wants to use N1.05bn to construct an Alternative Energy Source (Solar Powered Mini-grid System) at its headquarters in Abuja.

Also, the National Space Research and Development Agency, Abuja, proposed using N910m to construct and Install 2.5MW solar power plant for powering its ground station and antenna hub while the Office of the Head of the Civil Service of the Federation plans to upgrade its solar power system to mini-grid at the cost of N700m.

The Nigeria Police Academy Wudil, Kano, made provision of N700m for a 500kw solar for cadet hostels and admin blocks.

SMEDAN proposed N700m for the National MSME Green and Renewable Energy Initiative. Also, National Productivity Centre wants to buy another solar power light for cancer centre at the David Umahi Federal University at the rate of N700m.

While the Nigerian Stored Products Research, Ilorin proposed N490m for the installation of solar mini-grids in selected locations across Maiduguri.

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Also, the College of Horticulture allocated N420m for the provision of a solar mini-grid in Ganye LGA, Adamawa State.

Police Formations and Commands want to spend N390.9m for the provision and installation of solar hybrid systems for divisional police stations in selected states while the Federal Ministry of Science, Technology and Innovation plans to spend N373.8m for the provision and installation of mini-grid as alternative energy sources in selected locations in the South East.

Also, the Federal Co-Operative College, Oji Rivers State, says it wants to spend N350m for the construction of green energy through solar mini-grid in rural Ogbomosho and Oke Ogun and the same institution wants to use another N350m for the provision of mini grid in Isoko-South LGA, Delta South.

The Board for Technology Business Incubator Centre wants to install solar mini grids in all villages across Zamfara West Senatorial District at the rate of N350m.

Also, the Federal College of Horticulture, Dadin-Kowa, Gombe, says N350m of its budget will go into electrification projects (mini grid) in some parts of Ebonyi South with Nigeria Communication Satellite needing N350m for installation of 20kw renewable energy (solar panel) in schools in Rivers West Senatorial District.

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The Federal College of Horticulture, Dadin-Kowa, Gombe, wants to use N319.2m for the provision of home solar mini grid for households in Akangba/Olodeokuta while the Command and Staff College, Jaji proposed N298.2m for solar electrification of its headquarters building and academic departments.

The Auditor General for the Federation made provision for solar power and inverter installation at the cost of N225.7m while the Military Pension Board budgeted N162.3m for the provision and installation of solar systems.

Also, Nigeria Stored Products Research, Ilorin says it would spend N140m for the construction of a solar mini-grid in Bursari/Geidm/Yunusari Federal Constituency, Yobe State.

More woes for national grid

The potential exit of these agencies from the national grid means revenue losses for the electricity distribution companies as well as the electricity sector.

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Recall that already, the grid is losing more customers due its unreliability which has made heavy power users like manufacturing industries to apply for mini grids and captive power installation in their facilities.

Also, the solar homes system is another area Nigerians are spending on to become independent from the grid.

But experts have warned that the loss of heavy consumers will mean more cost for those still on the grid as the more the customers, the lesser the bills.

Govt needs to prioritise bringing industries back

The Executive Director of PowerUp Nigeria, Adetayo Adegbemle, has called on the Federal Government to prioritise bringing industries and manufacturers back to the national grid as a key step towards stabilising electricity supply, reducing costs and driving economic growth.

Adegbemle said Nigeria cannot achieve affordable power or industrial expansion without reintegrating large-scale consumers to the grid.

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According to him, manufacturers currently spend billions of naira yearly on alternative energy sources, a cost that is passed on to consumers in the pricing of goods.

"If that money enters the national grid, they can easily give electricity for free to homes because somebody will be paying for it. They can close their eyes and do cross-subsidies," he said.

Citing a report that manufacturers spend over N45trn yearly on self-generation of electricity, Adegbemle said the government must design policies and incentives that make grid power reliable and attractive for industrial users.

"You cannot build the grid on residential consumers. It has to be built on industries and commercial customers. They are the ones that can wake up in the morning and use 500 to 1,000 megawatts at once," he added.

Adegbemle criticised the current focus on decentralised, small-scale solutions, warning that abandoning the grid in favour of isolated generation will undermine efforts to lower electricity prices.

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He urged a review of the Nigerian Electricity Act to keep all states connected to the national grid, stressing that the centralised system remains the most efficient way to move energy in large volumes and reduce costs.

On the recurring metering challenges, Adegbemle faulted the federal metering schemes for being ineffective and riddled with vested interests. He argued that government interventions often serve as "avenues for a few people to make quick money" and called for private sector-led solutions through a meter franchising model.

This, he explained, would allow investors to take responsibility for metering designated areas, recover costs from users, and protect their investments from bypass and vandalism.

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Adegbemle also expressed concern over Enugu state's recent decision to cut electricity tariffs, describing it as investor-unfriendly and unsustainable.

He warned that applying subsidies without a clear funding plan could discourage private participation in the sector.

"Investors want to see where they can make their money back. If they are not assured of that, they will simply stay away," he said.

While acknowledging the Federal Government's efforts to reduce subsidy exposure by introducing cost-reflective tariffs for Band A customers, he insisted that removing all subsidies from the electricity market is necessary to attract the level of investment required.

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He further criticised the lack of a clear, integrated energy policy, noting that the current national plan focuses heavily on renewables without addressing the urgent need to power industries.

"For a country that wants to industrialise and provide jobs for over 250 million people, the priority should be strengthening the national grid and getting manufacturers back on it," he said.

Adegbemle urged policymakers to take bold, coordinated steps, pointing to South Africa and Egypt as examples of countries aligning energy policies with industrial and economic goals.

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"We need a power sector that works, not a piecemeal approach that breaks everything into small, unsustainable bits. The national grid must come first," he said.

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