Public universities in Nigeria face existential threat over high electricity tariffs

Ilenre Irẹlẹ

Public universities in Nigeria are assailed on many fronts by numerous challenges ranging from poor funding ,paucity of current academic journals, poor funding for research and development to declining standards as a result of the Japa syndrome of many high premium lecturers.

Perhaps the most threatening challenge currently is not only the high tuition and accommodation fees that students across federal universities are protesting against, but the high electricity tariffs.

It was when students of the University of Benin, UNIBEN took to the streets of Benin on rampage over total darkness, as a result of which they were sent home in the middle of the academic session. The institution was shut down following a peaceful protest by the students. The demand  of the students was for electricity and water, two basic ingredients for a comfortable stay in school, or anywhere for that matter.

According to  reports,  the students went for one week without water. The absence of electricity made the pumping of water impossible. BEDC Electricity cut off power to the school for failure to pay its electric bill of N280 million monthly. This followed a 300 per cent increase earlier in the year.

The University of Benin experience is just a window into the energy crisis in public universities in the country.
  Reports have shown that many  federal universities in Nigeria are on the brink of a major crisis,  but according to professor Yakubu Aboki Ochefu, secretary general of the Committee of Vice Chancellors of Nigerian Universities, about  52 institutions are on the brink of  a potential collapse due to a rise  in electricity tariffs.

Prof. Yakubu Ochefu was of the view that  if the Federal Government did not weigh in and force the  Discos to reduce the electricity tariff, 52 federal universities might collapse soon as high overhead cost will cripple their operations.

According to him  the Federal Government had already funded solar power plants for about 10 out of the 62 federal universities in the country, leaving the remaining 52 institutions to rely on the Discos for electricity supply as generating power independently has proven very costly for them.

“The Federal Government has funded solar power plants in some universities like the University of Agriculture in Makurdi. They don’t depend on the Discos as they generate their own power. But there are less than 10 federal universities that have such solar power plants out of about 62 federal universities, which means 52 others do not have.
“That is why we say in the interim, they should remove us from Band A and create a discretionary band for educational establishments so that we can be paying the rates we are paying before or something slightly higher. But to pay the commercial rates that everybody is paying is not sustainable. It will cripple the operations of the universities,” the VCs spokesman stated.

“Our bills have gone by 300 per cent, which translates into an increase in overhead costs for the University Vice Chancellors. For the Federal Universities, we have written to the President to let him know that with the hike, we cannot sustain the operations of the federal institutions and something must be done.

“So, it is either they (the government) move us from Band A to another band, which will give us reduced costs, support us in our effort to move to our alternate power sources or allow us to charge at economic rate so that we can pass the cost down to the end users which are the students. The Federal Government has to sit and consider any of the options for us. But they are yet to respond to us.”

On whether increasing the allocations to the university by the Federal Government will cover up for the electricity cost, Prof Ochefu said, “Even if they increase the allocation, it will not make a big impact.

“As you have read, the situation is already affecting the students. The UNIBEN closed down today because of the students’ protest over electricity. If nothing is done urgently, university operations will grind to a halt very soon.”

Reacting to the development, a don  at  University of Ilorin, Dr. U. Mohammed told  Energy Day  that  “what the Committee of Vice Chancellors was saying makes sense. The hike has affected universities community, government must as a matter of urgent importance come in to seek alternative power for the universities. As you know the universities are not allowed to exceed a certain level of charges for fees.

“If the universities are allowed to charge on the basis of consumption, every student and lecturer will be mandated to pay for electricity used. To avoid this, the government and the universities should enter into a workable agreement.”

This alarm has led to serious concerns among chancellors, stakeholders, parents and students, with stakeholders calling on the federal government to urgently prevent this ugly trend from sliding beyond this before the authorities intervene.

Recall that The Nigerian Electricity Regulatory Commission, NERC, has okayed  a 300 per cent increase in the tariff paid by Band A customers, from N68/KWh to N225/kWh. This hike has significantly  affected federal universities located in areas designated as Band A, leading to a quadrupling of their monthly electricity bills.

Recall that the VCs had earlier last month asked the Federal Government to provide a concessionary electricity tariff rate for the universities.

They said the appeal was based on the need to alleviate the financial burden of high electricity tariffs on these institutions.

According to reports,   Ahmadu Bello University, ABU, in Zaria  is now faced with  an annual electricity bill of N4.4 billion, up from N1.2 billion, while the University of Ilorin’s monthly bill has  jumped  from N70 million to N230 million, a situation the Vice Chancellor describes as “unsustainable”.

The financial strain caused by the tariff hike is crippling university operations across the country. Many institutions are already struggling to meet their overhead costs, and the additional burden of increased electricity bills threatens to halt their activities entirely.  Ochefu warned that if the Federal Government does not intervene, 52 federal universities may soon collapse.

The potential collapse of universities would not only disrupt the academic calendar but also jeopardise the education of millions of Nigerian youths. This would be an unfortunate development as Nigeria is already far behind in many educational indices and this could take the nation back decades.

The CVCNU has proposed several solutions to alleviate the financial burden on federal universities. One of the primary suggestions is to move universities from Band A to a discretionary band with lower tariffs for educational establishments. This would allow universities to pay rates closer to what they previously paid, or only slightly higher, rather than the unsustainable commercial rates currently imposed – a sensible proposal, if ever there was one.

Given the challenges with the current electricity supply, many universities are already exploring alternative power solutions. The University of Ilorin, for instance, is negotiating for alternative power supplies and incorporating provisions for these in new building designs. Energy-saving measures are also being implemented to reduce overall consumption.

Transitioning to alternative power sources, however, requires substantial initial investment, which many universities cannot afford without government support. This highlights the need for a coordinated effort between the government and educational institutions to develop sustainable and cost-effective power solutions.

The Federal Government has a critical role to play in resolving this crisis. First, there needs to be a review of the electricity tariffs imposed on educational institutions. As non-commercial entities providing essential public services, universities should not be subjected to the same tariffs as commercial customers. Implementing a concessionary tariff rate for universities is a necessary step to ensure their financial sustainability. This must be done immediately to forestall the domino effect of student protests.

Additionally, government should increase funding for the development of alternative energy sources in universities. Investing in solar power plants and other renewable energy solutions will provide long-term benefits, reducing reliance on Discos and lowering electricity costs.

Lastly, government must engage in meaningful dialogue with university administrators to understand their unique challenges and develop tailored solutions. This includes revisiting the funding model for federal universities to ensure they have the necessary resources to cover their operational costs without compromising the quality of education.

To avert the looming crisis due to the recent hike in electricity tariffs immediate and decisive action is required. Principally, the Federal Government must step in and provide relief through tariff adjustments, increased funding for alternative energy solutions, and ongoing support for university operations.

Government must safeguard the future of higher education in Nigeria. It has to ensure that universities continue to function effectively and provide quality education to the nation’s youth. This is how to secure the future.

But Dr. Olufemi Omoyele of the department of Entrepreneurship, Osun State University told  EnergyDay  that what is unfolding is lack of business creativity on the part of public universities.  He said these universities should exploit other sources of energy like renewable, adding that they could invest in solar. He was of the view that universities needed to look inwards in the area of electricity generation.
The next academic session which starts from September may prove tough for tertiary education in the country given a myriad of challenges some of which have assumed the level of potential industrial action. Various bodies in the universities have one issue or the other to iron out with the federal government bordering on a breach in agreements, all these would have to be resolved before the next academic session.

But academics like Omoyele has argued that the way forward is for the universities to seek ways and means of generating revenues, saying federal government can not do everything.