FG authorizes 50% discount on electricity costs for hospitals
The Federal Government has approved a 50% subsidy on electricity costs for hospitals nationwide. This decision follows a commitment made by Minister of Power Adebayo Adelabu to provide electricity subsidies to hospitals and universities, even if they are served by Band-A feeders.
On Thursday, Dr. Tunji Alausa, the Minister of State for Health and Social Welfare, confirmed the approval of the subsidy for public hospitals. He emphasized that the initiative aims to lower operational expenses for these facilities and ease the financial burden on patients.
Alausa made this announcement during a visit to the National Neo-Psychiatric Hospital in Barnawa, Kaduna. During his visit, he also introduced electronic health records and alternative power sources at the Lawal Jafaru Isah Emergency Complex, as well as a solarization project at the dialysis unit, which includes a solar-powered borehole.
Minister Adelabu, speaking recently in Ibadan, clarified that the subsidy would not extend to private enterprises operating within universities and hospitals. He acknowledged the financial difficulties faced by these institutions but stated that the government plans to install meters for all businesses within educational and health facilities to prevent the subsidization of private commercial activities.
Adelabu explained that while the government recognizes the role of universities and hospitals as development and social institutions, it will not subsidize private businesses using these institutions as fronts for their operations. He noted that proper metering would ensure that subsidies are provided only to entities directly related to health and education. The government intends to cover a portion of the electricity costs while private businesses would be responsible for their own bills.
Following the removal of subsidies from Band-A customers and the upgrade of their electricity supply to a minimum of 20 hours daily, universities and public hospitals have reported a significant increase in their electricity bills. For instance, the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital recently complained about a substantial rise in their bills from the Eko Electricity Distribution Company, with their May bill soaring to approximately N280 million, compared to the less than N100 million they previously paid.
The Ministry of Power has yet to release detailed information about the subsidy arrangement for these institutions. Bolaji Tunji, the Minister of Power’s spokesperson, has promised to provide further details in due course.
