A fifty percent subsidy for the amount of power used in hospitals across the country has been approved by the federal government.
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, stated that the Federal Government has authorised the 50% electricity subsidy for public hospitals.
He claimed that the purpose of this gift is to lessen the financial burden on public hospitals while also improving patient outcomes.
Alausa revealed these details at the National Neo-Psychiatric Hospital in Barnawa, Kaduna.
He also unveiled the electronic health records, the solar-powered borehole dialysis unit’s solarisation project, and the Lawal Jafaru Isah Emergency Complex’s alternative power source.
Adelabu, however, stated recently in Ibadan that the government would not support private companies that operate in these hospitals and colleges.
The minister revealed that the government was aware of the financial difficulties hospitals and institutions 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 institutions.
“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 costs had increased after the Federal Government eliminated incentives for clients classified as Band A and upped 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 astronomical 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.
