The Nigeria Electricity Regulatory Commission (NERC) gave approval for 10 institutions in the first half of 2026 to generate electricity for their consumption.

This is as more Nigerians seek reliable electricity off the solutions.

Analysis of quarterly reports produced by NERC showed that the institutions sought to generate 54.94 megawatts (MW) of electricity, under the captive electricity generation permits.

The reports defined Captive power generation permits as “entities that intend to own and maintain power plants exclusively for their consumption, i.e. no sale of electricity generated from the plant to any third party.”

The reports stated that six of the approvals were for tertiary institutions which are looking to reduce reliance on electricity from the national grid, which they said has become costly, due to their upgrades to Band A tariff.

According to the report, the first quarter saw approval for seven permits to generate a total of 40.82 MW while three permits were given in the second quarter to generate 14.12MW of electricity.

In Q1, it listed the permit given to include Modibbo Adama University Yola, Adamawa State, for 5MW generation; Federal University Dutsin-Ma Katsina, Katsina State for 1.9MW; Federal University of Lafia Lafia, Nassarawa State, for 1.6MW; Federal University of Uyo, Akwa Ibom State, for 2.9MW; University of Port Harcourt, Rivers State for 10.7MW; University of Port Harcourt Teaching Hospital, Rivers State for 10.7MW and Nigerian Breweries Plc Kaduna, Kaduna State for 8.02MW of electricity.

For Q2, the permits were given to BUA Cement Plc, in Sokoto for 12MW, African Consulting Office Energy Solutions, Jigawa State for 1MW electricity and Power Gas Ebedei Limited, Delta State, for the generation of 1.12 MW of electricity.

Why FG is prioritising tertiary institutions for alternative power

Daily Trust reports that since the introduction of tariff increase for Band A customers, several tertiary institutions had endured blackout due to the high bill they accumulated and they are unable to pay.

This has led to protests and long holidays as school management dialogues with electricity distribution companies on a new model to settle their bills.

But the government through the Rural Electrification Agency (REA) has been constructing solar mini-grids as alternatives for the schools.

According to the Managing Director REA, Abba Aliyu, 22 federal universities and three affiliated teaching hospitals are connected to solar electricity under its Energizing Education Program which was launched three years ago.

Also, the Minister of Education, Dr. Maruf Tunji Alausa, had stated that the initiative would provide universities with reliable and sustainable electricity for teaching, research, student accommodation and healthcare services.

Alausa said unreliable electricity had for years undermined academic activities, disrupted scientific research and imposed huge financial pressures on university administrators, who often rely on diesel generators to keep campuses running.

“We are taking our campuses off the national grid with dedicated solar power. You cannot build a modern university system where students cannot read at night, laboratories lose power in the middle of experiments, and hospitals attached to our universities are forced to run on noisy, expensive diesel generators,” he said.

The minister said the shift to dedicated renewable energy systems would also ease the burden of electricity bills on universities, allowing institutions to redirect resources towards academic infrastructure, equipment and research.

“The burden of electricity tariffs has been one of the heaviest strains on university finances. Instead of universities sinking hundreds of millions into electricity bills every single month, funds that should be expanding faculties or buying equipment, we are solving this structurally with clean, captive energy that operates around the clock,” he said. (Daily Trust)