In a significant move to alleviate the financial burden of electricity bills on tertiary institutions and teaching hospitals, President Bola Ahmed Tinubu has approved a 50% subsidy for electricity used by these institutions. The subsidy will benefit federal universities, polytechnics, colleges of education, and various teaching hospitals across Nigeria.
The announcement was made by the Minister of State for Health, Dr. Tunji Alausa, during an event in Kaduna. Dr. Alausa explained that the Ministry of Power is currently working on the modalities for the subsidy payment. This decision comes in response to the rising costs of electricity following subsidy reductions in the sector, which have left many institutions struggling to manage their budgets.
Several institutions have faced disconnection by Distribution Companies (DisCos) due to unpaid bills, with some students even protesting attempts to ration electricity to save costs. For instance, the University College Hospital (UCH) in Ibadan is disputing a N400 million bill with the Ibadan Electricity Distribution Company (IBEDC), while Ahmadu Bello University (ABU) Zaria faces a monthly bill of N300 million, leading to an annual potential debt of N3.6 billion with the Kaduna Electricity Distribution Company (KADCO). Recently, the University of Lagos was disconnected by Eko Electricity Distribution Company (EKEDC) for owing over N1 billion, despite having paid N180 million.
The subsidy is expected to provide much-needed relief to these institutions, which have seen their annual electricity budgets soar to unsustainable levels. For example, the annual electricity budget for 10 of the highest-spending public institutions is estimated at N247.7 billion.
However, this development has also raised questions among analysts about why experts in relevant disciplines within universities have not developed alternative power supply solutions, such as solar, wind, or hydroelectric power. There is also curiosity about the status of previous initiatives for university power supply, launched during the Muhammadu Buhari administration under former Minister of Power, Babatunde Fashola.
In addition to announcing the subsidy, Dr. Alausa highlighted ongoing efforts in the healthcare sector to address challenges such as the "Japa syndrome," where healthcare workers leave Nigeria in search of better opportunities abroad. He also mentioned plans to implement a national electronic medical system to improve patient care and data management.
Kaduna State Governor Uba Sani, represented by Deputy Governor Hadiza Balarabe, praised the President's leadership in healthcare provision and assured continued support for the National Ear Care Centre in Kaduna, which recently inaugurated several new facilities as part of a broader effort to enhance healthcare infrastructure and services in the region.
