In August 2024, the Minister of Power, Adebayo Adelabu, announced that the government would cover part of the electricity costs incurred by hospitals and universities, particularly those connected to Band A feeders, where tariff subsidies had been removed. However, stakeholders now say there has been no follow-up action, and institutions are still struggling with heavy financial burdens.
Industry sources familiar with the matter revealed that there is currently no active plan within government circles to execute the subsidy. According to them, the policy was never formally approved by the Federal Executive Council and may have been a political statement made without institutional backing. The Minister’s promise came after steep hikes in power tariffs left health and academic institutions paying up to three times their former rates. Some tertiary hospitals now reportedly spend as much as N300 million monthly on electricity, up from less than N100 million before the 2024 tariff review.
Speaking during a radio programme in Ibadan last August, Adelabu had said, “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.” He also clarified that the subsidy would not apply to commercial activities operating within the institutions. The former Minister of State for Health and Social Welfare, Dr Tunji Alausa, echoed the pledge, stating that the Federal Government had approved a 50 per cent electricity subsidy for public hospitals to reduce operational costs. But after a year, officials in government-owned hospitals and schools confirmed that no such relief had been received.
Several administrators, who spoke on condition of anonymity, expressed frustration at the continued silence from authorities. They said the escalating cost of electricity was placing immense strain on their finances and disrupting operations. “The government made a clear promise, yet nothing has been done. We are pleading for urgent action,” one official said. The National Coordinator of the All-Electricity Consumers Protection Forum, Adeola Samuel-Ilori, described the subsidy pledge as a “mere political statement” lacking institutional backing. “It’s unfortunate that there’s nothing like a subsidy in place by this government,” he said. “It was just an exciting announcement from the minister. My interaction with officials at the Nigerian Electricity Regulatory Commission confirmed that no such policy had been formally adopted.”
A Professor of Energy Law at the University of Lagos, Dayo Ayoade, suggested that the policy may have stalled due to concerns over sustainability and abuse. “The problem about subsidies is that they are difficult to target, and they are often abused,” he said. “It’s a good idea to help hospitals and universities manage their power costs, but the implementation has to be transparent and sustainable. Perhaps that is what is holding it back.” He also urged that the government should consider long-term alternatives, including solar energy, noting that “investing in renewables could take many institutions off the grid and reduce reliance on costly electricity.” However, he warned that such interventions would require time and consistent funding.
In a related development, several institutions, including the University of Lagos, have reportedly faced disconnection due to unpaid electricity bills. Sources say many hospitals are now forced to ration power or operate in darkness, further complicating service delivery. In respondence to inquiries, the Minister of Power, Bolaji Tunji, said the government was focusing on solar installations rather than direct subsidies. He said the Rural Electrification Agency was coordinating a project to power institutions with renewable energy sources.
According to data provided by Tunji, several universities and hospitals have already benefited. The University of Maiduguri and its teaching hospital received 12 megawatts of solar power, while the University of Calabar and its teaching hospital received 7 megawatts. Others include Michael Okpara University of Agriculture (3MW), Federal University of Agriculture, Abeokuta (3MW), University of Abuja (3MW), Nigerian Defence Academy (2.5MW), and Federal University Gashua (1.5MW).
Despite these efforts, stakeholders say the scope remains limited and does not address the immediate financial strain many institutions are facing due to high energy costs. Critics argue that solar installations, while promising, are long-term solutions that do not replace the urgent need for financial relief. With the minister now declaring his interest in the 2027 Ogun State governorship race, critics worry that the subsidy pledge may have been politically motivated from the start.
Observers continue to call on the government to clarify its position, either by rolling out the promised subsidy or unveiling a transparent, scalable plan to support health and academic institutions grappling with electricity challenges.
