FG Approves 50% Electricity Subsidy For Public Hospitals

The federal government has announced the approval of a 50% subsidy for electricity used by hospitals across the country. 

Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced the new subsidy for public hospitals, on Thursday.

He noted that the initiative was intended to lower operational expenses for these facilities and ease the financial burden on patients.

Alausa made the announcement at the National Neo-Psychiatric Hospital in Barnawa, Kaduna, where he also introduced new electronic health records and a backup power supply at the Lawal Jafaru Isah Emergency Complex, alongside a solarisation project at the dialysis unit, which includes a solar-powered borehole.

This was as the Minister of Power, Adebayo Adelabu, said it was the decision of the government to support electricity costs for hospitals and universities, including those on Band-A feeders.

In a recent statement in Ibadan, Adelabu clarified that the government would not extend this subsidy to private businesses operating within these hospitals and universities.

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He explained that while the government recognizes the financial struggles of these institutions, it plans to install meters to track usage accurately and ensure that subsidies are only provided to entities directly related to health and education.

The goal is to prevent subsidizing private businesses that charge commercially within these institutions.

Adelabu emphasised that the government is committed to supporting genuine health and education-related entities, even those on Band A, but stressed the importance of proper data collection to avoid unjust subsidies for private enterprises.

He noted that the recent removal of subsidies for Band A customers and the upgrade to a minimum of 20 hours of electricity daily had led to significant increases in bills for universities and public hospitals.

Adelabu said, “We know they are development institutions, they are social institutions. But inside the health and educational institutions, private businesses are hiding under them.

“These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions.

“We said no, go and do a proper search and meter everybody. For the ones that are properly health and education-related, we are ready to subsidise them, even if they are on Band A.

“We are compiling our data, DisCos will collect a certain amount and the government will pay the balance.

“But we must get the data right so that we are not subsidising a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair.”

Recently, both the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital reported a drastic increase in their electricity bills from the Eko Electricity Distribution Company, with a bill of approximately N280 million for May compared to the previous amount of less than N100 million.

The Ministry of Power has yet to provide further details on the subsidy arrangement. Bolaji Tunji, the Minister of Power’s spokesperson, has promised to provide additional information soon.