Universities across Nigeria are battling steep electricity tariffs imposed by electricity distribution companies (DISCOs), which are causing significant financial strain. This year, the ten universities with the highest budgets are projected to spend over N75 billion on electricity alone.
With a combined budget of N247.6 billion for 2024, these universities, including the University of Nigeria, Nsukka (N36.6bn), University of Calabar (N29.5bn), and Ahmadu Bello University (N29.2bn), among others, are struggling to manage increased electricity costs. This financial pressure has led many institutions to ration power or face disconnection from the national grid due to unpaid bills.
The categorization of these universities into “Band A” by the National Electricity Regulation Commission (NERC) has exacerbated the issue. This classification, which requires higher tariffs, has not been matched with improved electricity supply. For instance, the University of Lagos (UNILAG) saw its monthly electricity bill surge from N180 million to N300 million, while Ahmadu Bello University (ABU) faces a similar monthly bill.
At the Federal University of Technology, Akure (FUTA), the Benin Electricity Distribution Company (BEDC) increased the monthly bill from N20 million to N60 million, despite the university receiving less than eight hours of power daily instead of the promised 20 hours.
The University of Benin (UNIBEN) has also faced challenges, with monthly bills increasing from N80 million to N250 million. Students have protested against poor power and water supply, leading to temporary campus closures. The situation has forced staff to use generators and solar-powered facilities, while students endure harsh living conditions.
Mrs. Evelyn Gbiwen, Head of Branding and Corporate Communications at BEDC, explained, “The new tariff system determines what ‘Band A’ customers would pay. There is nothing deliberate about any customer. It is a general policy that when customers don’t pay their bills, they will be disconnected.”
Similarly, Aliko Dangote University of Science and Technology in Kano faced disconnection due to unpaid bills after their monthly bill from Kano Electricity Distribution Company (KEDCO) jumped from N20 million to N60 million. The Dean of Students’ Affairs, Prof. Abdulkadir Dambazau, stated that the university is struggling with the sudden increase and has appealed for government and public assistance.
In response to the escalating costs, Kwara State University, Malete, has opted for an Independent Power Project (IPP) to supply its power, moving away from reliance on federal electricity supply. Meanwhile, the University of Ilorin reported a June 2024 electricity bill of approximately N380 million, up from N350 million in May.
Ahmadu Bello University highlighted its financial strain in an open letter to President Bola Tinubu, revealing an annual electricity bill of N3.6 billion. The letter, signed by 40 professors, urged the president to intervene, noting that the high tariffs are unaffordable given the chronic underfunding of universities.
The federal government acknowledges the need for substantial investment to improve the country’s power supply. Minister of Power, Chief Bayo Adelabu, emphasized the requirement for N6 trillion in annual revenue to stabilize the power sector, compared to the current N1 trillion generated.
Dr. Niyi Sunmonu, National President of the Congress of University Academics (CONUA), and Prof. Emmanuel Osodeke, National President of the Academic Staff Union of Universities (ASUU), have both called for special status for educational institutions to ensure sustainable electricity supply without crippling their financial resources.
The National Association of Nigerian Students (NANS) and the National Parents/Teachers Association of Nigeria (NAPTAN) have also urged the government to remove universities from the “Band A” category and to support the development of independent power solutions for campuses.
