The Federal Government has approved a 50 per cent subsidy for the electricity used in hospitals and universities across the country.
Adebayo Adelabu, the minister of power, had previously promised that the Federal Government would subsidise electricity costs for hospitals and institutions, regardless of whether or not they were on Band-A feeders.
On Thursday, Dr Tunji Alausa, the Minister of State for Health and Social Welfare, declared that the Federal Government has authorised the 50% electricity subsidy for public hospitals.
He claims that the purpose of this gesture is to lessen the financial burden on public hospitals while also improving patient outcomes.
Alausa revealed this details at the National Neo-Psychiatric Hospital in Barnawa, Kaduna, where he also unveiled the electronic health records and an alternative power supply source at the Lawal Jafaru Isah Emergency Complex and the solarisation project at the dialysis unit, which includes a solar-powered borehole.
Adelabu, however, stated recently in Ibadan that the government would not authorize private businesses that operate in these hospitals and universities.
The minister revealed that the government was aware of the financial difficulties hospitals and universities are facing.
He did, however, add that in order to avoid giving subsidies to private companies, the federal government intended to meter every firm operating within each of the universities.
“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,” he stated.
Universities and public hospitals complained that their bills had increased after the Federal Government eliminated subsidy from customers classified as Band A and upgraded their daily electricity supply to a minimum of 20 hours daily.
The Lagos University Teaching Hospital and the College of Medicine at the University of Lagos recently expressed their displeasure with the Eko Electricity Distribution Company’s exorbitant May electricity bill.
The institutions said that rather than paying less than N100 million as they have in the past, they were collectively given a bill for May of roughly N280 million.
Details regarding the institutions’ subsidy arrangement are still pending from the Ministry of Power.
The Minister of Power’s spokesman, Bolaji Tunji, promised to revert.
