About one year after the Federal Government promised to subsidise electricity consumed by hospitals and educational institutions in the country, the facilities are still grappling with high electricity debts.
The Minister of Power, Adebayo Adelabu, who made the promise in August 2024, has since remained quiet, with no further action taken on the promise. This came as industry sources knowledgeable about the development stated that the Federal Government may not be considering any form of power subsidy for these institutions at the moment.
A consumer group also condemned the government’s silence on the matter, alleging that the power minister only made the statement without the approval of the Federal Executive Council.
Adelabu’s promise to subsidise electricity in health and educational institutions came amid the rise in electricity tariffs payable by these institutions, especially after they were moved to Band A.
With the removal of subsidies in areas under Band A feeders, the bills of many health and academic institutions tripled, making it difficult for them to meet their obligations.
Some tertiary hospitals pay as much as ₦300 million per month to cover their electricity bills. The figure, they said, rose from less than ₦100 million before the tariff review.
But in August 2024, Adelabu, who has now declared his intention to contest for the Oyo governorship seat, disclosed that the government would subsidise electricity in hospitals and universities, even if they are on Band-A feeders.
Adelabu, however, said the government would not subsidise private businesses operating in these hospitals and universities. The minister disclosed that the government was aware that universities and hospitals are having challenges paying their electricity bills.
“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,” the minister had stated.
Almost a year later, the government has yet to fulfill its promises to these institutions, as most of them still struggle to pay their electricity bills to avoid being disconnected by the distribution companies.
The former Minister of State for Health and Social Welfare, Dr Tunji Alausa, had also announced last year that the Federal Government had approved a 50 per cent electricity subsidy for public hospitals, corroborating Adelabu’s earlier disclosure.
According to Alausa, the gesture aimed to reduce the running costs for public hospitals and alleviate the impact on patients. However, as of the time of filing this report, the implementation of the policy has yet to commence, prompting stakeholders to tag this as another failed government promise across various sectors.
Officials of Federal Government-owned tertiary health and educational institutions confirmed that the government had yet to subsidise electricity in their hospitals.
The officials, who did not want to be mentioned to avoid being persecuted, stated that the high cost of electricity was impacting the finances of these institutions, affecting operating expenses.
They worried that after about a year, the government had failed to fulfill a promise it had made willingly, begging the Federal Government to reconsider implementing the plan as soon as possible.
The PUNCH