Only Public Universities, Hospitals to Benefit from New Electricity Subsidy

The Federal Government has announced plans to begin subsidizing electricity costs for universities and healthcare institutions connected to Band A feeders.

This was revealed by the Minister of Power, Adebayo Adelabu, during a radio program broadcast in Ibadan, Oyo State, on Saturday.

However, Adelabu clarified that the subsidy will not extend to private businesses operating within these universities and hospitals.

This move follows complaints from universities and public hospitals after the government removed subsidies for Band A customers and increased their daily electricity supply to a minimum of 20 hours. The institutions reported a sharp increase in their electricity bills.

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For instance, the University of Lagos College of Medicine and the Lagos University Teaching Hospital reported receiving an electricity bill of approximately N280 million for May, a significant jump from the less than N100 million they previously paid.

Similarly, the monthly bill for the University of Lagos rose from N180 million to N300 million, while the Federal University of Technology, Akure, saw its bill increase from N20 million to N60 million.

The University of Benin experienced a hike in its monthly tariff from N80 million to N250 million. Babcock University, Ogun State, also reported paying N300 million for electricity in May, with the Vice-Chancellor, Prof. Ademola Tayo, expressing concern that the high electricity costs are threatening the quality of education in Nigeria.

In response to these concerns, the minister acknowledged the difficulties faced by universities and hospitals in covering their electricity costs.

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He noted, “We understand that these institutions are vital for development and social services. However, there are private businesses operating within these facilities that charge their customers commercially and expect to benefit from subsidies just because they are located within these institutions.”

Adelabu emphasized that the government is willing to subsidize electricity costs for institutions genuinely involved in health and education, even if they are on Band A feeders. He added, “We are in the process of gathering accurate data. DisCos will collect a portion of the payment, and the government will cover the rest. But we must ensure that the subsidy does not benefit private businesses that charge customers commercially, as that would result in unfair profits.”

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