The Federal Government has approved contracts worth ₦68.7 billion for two major power projects targeting universities, teaching hospitals, and rural businesses, as part of efforts to reform Nigeria’s energy sector.
The Minister of Power, Adebayo Adelabu, disclosed this on Thursday after the Federal Executive Council (FEC) meeting presided over by President Tinubu at the State House, Abuja.
Adelabu said the approvals reflect the government’s commitment to delivering reliable electricity to critical sectors.
“This administration is bent on ensuring the transformation in our power sector and improving supply of power to two key sectors for national existence,” he stated.
The first approval covers engineering, procurement, and construction services under the Energising Education Programme, funded through the Special Intervention Fund for Infrastructure Development and managed by the Rural Electrification Agency, and small enterprises in underserved areas.
The total contract value of ₦68.7 billion includes 7.5% VAT.
While the university projects will take up to nine months, the rural component has a three-month delivery timeline.
“This government is empowering rural communities to enjoy good livelihoods in their homes and also to put their effort into productivity to improve their prosperity,” Adelabu said.
Speaking further on power approvals, Adelabu said the first is valued at ₦145 billion, inclusive of 7.5 percent VAT, is for the engineering, procurement, and construction (EPC) of power systems under the Energizing Education Programme (EEP), implemented by the Rural Electrification Agency (REA).
He disclosed that this will be funded through the Renewed Hope Infrastructure Development Fund and is expected to be delivered within seven to nine months.
The EEP is targeted at easing the energy burden on Nigeria’s public universities and tertiary teaching hospitals by providing reliable, renewable power supply.
The Minister noted that many institutions have faced severe electricity challenges, leading to blackouts and industrial actions, as they struggle to meet exorbitant utility bills from distribution companies.
“The absence of reliable power in most institutions has grown into a crisis.
This initiative will bring relief to educational and medical institutions and improve the quality of education and healthcare delivery,” Adelabu added.
(Voice of Nigeria)
