The Federal Government has approved a 50% subsidy on electricity consumption for hospitals across the country, aiming to reduce operational costs and alleviate the burden on patients.
This followed a promise by the Minister of Power, Adebayo Adelabu, that the Federal Government would subsidise electricity in hospitals and universities, even if they are on Band-A feeders.
Dr. Tunji Alausa, Minister of State for Health and Social Welfare, disclosed the approval, stating that the gesture will help minimize the financial strain on public hospitals.
Adelabu, clarified that the subsidy will only apply to legitimate health and educational institutions, excluding private businesses operating within these institutions.
“We know they are development institutions, they are social institutions. But inside the health and educational institutions, private businesses are hiding under them. These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions.
“We said no, go and do a proper search and meter everybody. 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. But we must get the data right so that we are not subsidising a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair,” he stated.
The government plans to meter all businesses within these institutions to ensure accurate data collection and prevent subsidizing private entities.
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