Confusion followed the federal government’s claim that public hospitals will get a 50% electricity pricing discount, while the Nigerian Electricity Regulatory Commission (NERC) disputes having received any such direction.
The state minister for health, Tunji Alausa, made the announcement last month that President Bola Tinubu had authorized a healthcare facility subsidy in response to mounting requests for government action to lessen the crushing effect that excessive energy prices have on hospital operations.
According to him, the plan would primarily benefit government teaching hospitals, excluding private institutions that have spearheaded many campaigns advocating for a unique power rate.
The NERC, however, stated that the FG’s proposed independent strategy to lower hospital power rates does not exist. “We have not received any communication from the federal government regarding an electricity subsidy for hospitals. We haven’t,” Usman Arabi, NERC, head of public affairs said.
Meanwhile, hospital directors are keenly awaiting the implementation of the subsidy directive as many of them struggle with millions of naira in electricity debt accumulated since the tariff increased by over 300 per cent.
The University College Hospital (UCH) in Ibadan was disconnected from the electricity grid by the Ibadan Electricity Distribution Company (IBEDC) earlier this year due to an unpaid debt of nearly N500 million, disrupting healthcare services for the city’s population of over 3 million.
Since May, the Lagos University Teaching Hospital (LUTH) has been experiencing frequent and unexpected power outages, coupled with a monthly electricity bill of around N280 million, which is 21.7 per cent higher than the total electricity bill of the entire University of Ilorin
John Okeniyi, the chief medical director (CMD) of Obafemi Awolowo University Teaching Hospital Complex (OAUTHC) lauded the initiative, noting that Alausa had confirmed it at a recent meeting of the committee of CMDs in Abuja.
He believes the subsidy will significantly reduce operational costs for hospitals nationwide, stating, ‘Electricity is crucial for the efficient functioning of OAUTHC and other healthcare institutions across the country.’
Wasiu Adeyemo, CMD of LUTH said he awaits the electricity bill for September to confirm if the subsidy will be reflected or not.
“We have not received the modus operandi but I’m aware that the government is serious about it and hoping that it gets it done. The government will have to talk to the NERC and pass the message across to us. It is not something difficult,” Adeyemo said.
In response to the question of whether patients can expect lower treatment costs if the subsidy is implemented, Adeyemo stated that the hospital has not increased its charges despite the rising inflation.
Adetokunbo Fabamwo, CMD of Lagos State University Teaching Hospital told BusinessDay that the subsidy does not extend to the hospital as it is supplied power by the independent power project (IPP) run by the state government.
However, the IPP developed issues many months ago, forcing the hospital to rely on electricity generators for power.
“We have been spending a lot of money to purchase diesel because we cannot shut down. We supply power for an average of 16 hours a day. But all the critical service areas get 24-hour light, one way or the other. All the emergency units, theater, labor ward, neonatal unit, ICU, and intensive care unit, get 24-hour power. But for the wards and clinics, we ration power just so that generators can rest,” Fabamwo told BusinessDay.
Apart from implementation, another challenge is the limitation of the subsidy benefit to just public hospitals.
Private hospitals are hurt about being left out despite engaging the Nigerian Electricity Regulation Commission for more than two years without yielding results.
