FG Unveils N100bn Solarisation Initiative For Public Institutions, To Cut Cost Of Governance

The federal government has unveiled a solarisation programme to power public institutions with clean energy and reduce reliance on diesel and petrol, thus cutting cost of governance.

The first phase which is known as Phase Zero, is fully funded by the federal government’s N100 billion budgetary allocation.

The initiative, known as the National Public Sector Solarisation Initiative (NPSSI), was formally launched on Thursday, following the signing of a memorandum of understanding by the relevant government agencies.

The agreement is between the Rural Electrification Agency (REA), the budget office, the Infrastructure Corporation of Nigeria (InfraCorp), and the Ministry of Finance Incorporated (MOFI).

NPSSI is designed to accelerate the deployment of distributed solar energy systems across critical public sector infrastructure, including schools, hospitals, government offices, and security posts.

Speaking on the project, Abba Aliyu, managing director of REA, said the NPSSI represents a significant step toward Nigeria’s clean energy transition and the localisation of renewable infrastructure.

Aliyu noted that the NPSSI is part of a broader strategy to position Nigeria as the renewable energy hub of Africa, while promoting innovation, local manufacturing, and sustainability in energy infrastructure financing in Nigeria.

What makes this truly remarkable, he said, “is the collaborative spirit behind it. We are witnessing a new era of inter-agency synergy, driven by creativity, fiscal responsibility, and a shared determination to reduce the cost of governance while meeting our national energy transition goals”.

He said at its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint.

“The signing ceremony for the National Public Sector Solarisation Initiative (NPSSI), Ministry of Finance in Abuja, not only strengthens the alliance and collaboration between the government and the private sector in the energy sector but also aims to advance the nation’s drive for localised renewable energy infrastructure and reverse unsustainable energy financing mechanisms.

While providing an overview of the initiative, Abba Aliyu explained that “The NPSSI is a flagship, government-led programme designed to accelerate the deployment of distribute d solar energy solutions across Nigeria’s public sector institutions: schools, hospitals, security posts, government offices, and more. At its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint”

MD REA further explained that “at its core, this initiative was birthed from a strategic national

MD REA further explained that “at its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint”. Phase 0 of the NPSSI is fully funded by the Federal Government of Nigeria to the tune of N100 billion. Subsequent phases will harness innovative and blended financing models, leveraging private capital from both local and international long-term fundamental under structures that eliminate sovereign guarantees and contingent liabilities.

Similarly, speaking at the event, the director general of the Budget Office of the Federation, Dr. Tanimu Yakubu, emphasised the significance of the initiative in addressing Nigeria’s long-standing energy gap and strengthening the fiscal efficiency of public sector ope rations. He explained that “solarisation has come of age as a necessity” and NPSSI will provide an added opportunity to optimise “the demonstrated ability of public institutions to pay for clean, sustainable energy, which is what the capital market needs to ensure bankability”.

On his part, MD/CEO of InfraCorp, Dr. Lazarus Angbazo, hailed the initiative as a model for the future of infrastructure financing in Nigeria. He explained that “for decades, the sector has re lied solely on public financing” and “while government is indispensable, government is n ot enough to solve the energy challenge”, hence the need to optimise the federal government’s NPSSI as a pathway to drive localization of energy capability and supply chain integration.

Also speaking, MD of MOFI, Dr. Armstrong Takang,  added a strategic perspective on the need for evolving funding models for Nigeria’s energy sector.

Dr Takang, who was represented by MOFI’s chief investment officer

Dr. Femi Ogunseinde, explained that “our energy mix has historically been unfairly weighted on fossil fuel, which is expensive to sustain. We must not underestimate the importance of creating business models that drive down the cost of power while expanding access. We must now chart a new course, one that de-emphasises the use of sovereign guarantees, domestically anchored and investment-ready”

With far-reaching objectives, the NPSSI is aimed at sustainably eliminated dependence on diesel generators and high electricity bills, while advancing energy access, sustainability culture and local job creation.

The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Govern ment of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians. The Agency was established under section 127 of the Electricity Act 2023.