FG Begins Electricity Subsidy for Public Hospitals
Doctors At Work
The Federal Government of Nigeria has started providing electricity subsidies for public hospitals across the country. This move is part of efforts to reduce the cost of operations for hospitals and lessen the financial burden on patients.
50% Subsidy for Public Hospitals
In August, the government approved a 50% subsidy on electricity bills for public hospitals and tertiary education institutions. This was confirmed by the Minister of State for Health and Social Welfare, Dr. Tunji Alausa, who said the subsidy would help hospitals cope with rising electricity costs and improve service delivery. The subsidy was officially launched at the National Neo-Psychiatric Hospital in Kaduna State, where Dr. Alausa introduced the Electronic Health Records system and alternative power supply at the Lawal Jafaru Isah Emergency Complex.
Impact of Electricity Tariff Hike
Earlier in April, the Nigerian Electricity Regulatory Commission increased electricity tariffs for Band A customers from N68/kWh to N225/kWh—a 300% rise. Band A customers receive at least 20 hours of electricity daily, and many public hospitals fall under this category. After hospitals raised concerns about their skyrocketing electricity bills, the Minister of Power, Adebayo Adelabu, announced that the government would subsidize electricity for hospitals and government-owned education institutions to ease their financial strain.
The electricity subsidy for public hospitals will significantly reduce their operational costs, ensuring that healthcare remains affordable for Nigerians.” – Dr. Tunji Alausa, Minister of State for Health and Social Welfare
Image Of One Of The Hospitals In Nigeria
Plans to Include Private Hospitals
Tashikalmah Hallah, Senior Adviser of Media and External Relations to the Coordinating Minister of Health and Social Welfare, confirmed that the subsidy program for public hospitals has already started. He also mentioned that the government is considering extending the subsidy to private hospitals, although plans have not yet been finalized.
N5.4tn Saved from Fuel Subsidy Removal
Meanwhile, the Governor of Ogun State, Dapo Abiodun, announced that the removal of the petrol subsidy has saved Nigeria N5.4 trillion. Speaking during a church service for Nigeria’s 64th National Day celebration, Abiodun highlighted that this saved money could now be redirected towards improving infrastructure and social services. He explained that without removing the subsidy, Nigeria would have spent N5.4 trillion on fuel subsidies by the end of 2024, almost equaling the country’s infrastructure budget of N6.7 trillion. According to the governor, the removal of the subsidy frees up funds for the development of essential services.
The Federal Government’s electricity subsidy for public hospitals and the savings from fuel subsidy removal aim to strengthen Nigeria’s infrastructure and healthcare systems. These actions are designed to reduce financial pressure on institutions and improve the quality of life for Nigerians.
