- NERC approved 10 institutions to generate a combined 54.94MW of electricity for their own use in the first half of 2026, including six tertiary institutions
- The approvals come as universities struggle with high electricity bills and unreliable grid power, prompting some to seek alternative energy sources
- Meanwhile, the FG’s Energizing Education Programme has connected 22 federal universities and three affiliated teaching hospitals to solar electricity
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigerian Electricity Regulatory Commission (NERC) approved captive power generation permits for 10 institutions in the first half of 2026 as organisations seek more reliable and affordable electricity.
The institutions received approval to generate a combined 54.94 megawatts (MW) of electricity for their own use, according to NERC’s quarterly reports.
Source: UGC
Captive power generation allows organisations to operate power plants exclusively for their consumption without selling the electricity produced to third parties.
Six of the approved permits went to tertiary institutions seeking alternatives to the national grid amid rising electricity costs, particularly for customers classified under Band A tariffs.
NERC approves 10 captive power projects
NERC’s report showed that seven permits were issued in the first quarter of 2026, covering a combined generation capacity of 40.82MW. Three additional permits were granted in the second quarter for a total of 14.12MW.
The institutions approved in the first quarter were:
- Modibbo Adama University, Yola, Adamawa State — 5MW.
- Federal University Dutsin-Ma, Katsina State — 1.9MW.
- Federal University of Lafia, Nasarawa State — 1.6MW.
- University of Uyo, Akwa Ibom State — 2.9MW.
- University of Port Harcourt, Rivers State — 10.7MW.
- University of Port Harcourt Teaching Hospital, Rivers State — 10.7MW.
- Nigerian Breweries Plc, Kaduna State — 8.02MW.
In the second quarter, NERC approved captive power generation permits for BUA Cement Plc in Sokoto State, with a capacity of 12MW.
African Consulting Office Energy Solutions in Jigawa State received approval to generate 1MW, while Power Gas Ebedei Limited in Delta State was authorised to generate 1.12MW.
High electricity bills push universities to seek alternatives
The approvals come as some tertiary institutions face difficulties meeting electricity bills following tariff increases for Band A customers.
According to Daily Trust, several universities have experienced power disruptions after accumulating bills they could not afford to pay.
The situation has triggered protests and extended holidays at some institutions as managements negotiate with electricity distribution companies over payment arrangements.
The rising cost of grid electricity has also encouraged institutions to explore independent power generation to maintain essential services and academic activities.
Meanwhile, the Federal Government has been promoting solar power as another option for universities through the Rural Electrification Agency (REA).
REA Managing Director Abba Aliyu said 22 federal universities and three affiliated teaching hospitals had been connected to solar electricity through the agency’s Energizing Education Programme.
FG expands renewable energy access to universities
The Minister of Education, Dr Maruf Tunji Alausa, said the initiative was designed to provide universities with dependable and sustainable electricity for teaching, research, student accommodation and healthcare services.
According to the minister, unreliable power supply has disrupted academic activities and scientific research for years while placing additional financial pressure on university administrators.
Many institutions have relied on diesel-powered generators to keep their campuses operational, increasing their running costs.
Source: UGC
Alausa said dedicated renewable energy systems would help reduce the burden of electricity expenses and enable universities to channel more resources into research, academic infrastructure and essential equipment.
Source: Legit.ng