The federal government said on Sunday that it has begun implementing electricity subsidies for public hospitals across the nation. This comes as Governor of Ogun State, Dapo Abiodun, declared that eliminating the subsidy on Premium Motor Spirit, also known as petrol, saved Nigeria N5.4 trillion.
Tashikalmah Hallah, Senior Adviser of Media and External Relations to the Coordinating Minister of Health and Social Welfare, informed one of our correspondents on Sunday that a power subsidy for public hospitals had begun. Hallah also stated that the government intends to subsidise electricity for private hospitals nationwide.
In August, the Federal Government granted a 50% subsidy for power consumed by public hospitals and tertiary education institutions across the country.
The Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced that the Federal Government had approved the 50 percent electricity subsidy for public hospitals. According to Alausa, the gesture aims to reduce the running costs for public hospitals and alleviate the impact on patients.
Alausa stated this at the National Neo-Psychiatric Hospital in Barnawa, Kaduna State, while unveiling the Electronic Health Records and Alternative Power Supply at the Lawal Jafaru Isah Emergency Complex.
In April, the Nigerian Electricity Regulatory Commission announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225/KWh, which represented a 300 percent increase.
Band A customer enjoys electricity supply for at least 20 hours per day. Most public tertiary hospitals and education institutions in Nigeria are under this band.
However, many of those institutions had cried out over soaring electricity bills following the new policy.
After a report by The PUNCH on the excruciating effects of these unaffordable bills, the Federal Government, through the Minister of Power, Adebayo Adelabu, promised that the Federal Government would subsidise electricity in hospitals and government-owned education tertiary institutions, even if they are on Band A feeders.
The President of the Nigerian Medical Association, Prof Bala Audu, earlier commended the subsidy but urged the government to consider subsidising electricity for private hospitals.
When contacted on the development on Sunday, Hallah said, “The subsidy for all federal teaching hospitals and medical centres has been started. The issue now is how to subsidise electricity for the private sector. The government is thinking of bringing the private sector into the picture.
“So the subsidy for public hospitals has started, but I can’t confirm what percentage because I don’t have those details, but I’m aware that subsidies for public hospitals have started. There is a plan that private hospitals will also be incorporated, but it has not been finalised,” he said.
