The Federal Government has declared a 50% subsidy on electricity costs for public hospitals across the nation.
Dr. Tunji Alausa, the Minister of State for Health and Social Welfare, made the announcement on Thursday, highlighting that the initiative aims to lower operational expenses for public hospitals and ease the financial burden on patients.
This subsidy follows a previous commitment by Minister of Power Adebayo Adelabu to provide support to hospitals and universities, including those on Band-A feeders.
However, Adelabu made it clear that private businesses operating within these institutions will not receive the subsidy. He stressed the importance of metering to distinguish between legitimate institutional usage and commercial activities.
“We recognize that these are development and social institutions. However, some private businesses are taking advantage of their presence within these facilities. They charge their customers commercially while expecting to benefit from subsidies,” he explained.
“We have instructed that a thorough assessment be conducted to meter all users. We are prepared to subsidize those that are genuinely related to health and education, even if they fall under Band A. We are currently gathering data, and Distribution Companies (DisCos) will collect a specific amount, with the government covering the remainder. It is crucial that we accurately identify users to avoid subsidizing private businesses that charge commercially, as that would lead to unfair profits,” he added.
This government initiative is viewed as a significant relief for public hospitals facing challenges in managing electricity expenses, while private enterprises within these institutions will be responsible for their own costs. The subsidy is part of broader efforts to support essential social institutions, ensuring they can continue delivering vital services without excessive financial pressure.
