The Federal Government has initiated electricity subsidies for public hospitals nationwide, according to a statement released on Sunday. This comes after Ogun State Governor Dapo Abiodun revealed that the removal of fuel subsidies had saved Nigeria ₦5.4 trillion.
Tashikalmah Hallah, Senior Adviser on Media and External Relations to the Coordinating Minister of Health and Social Welfare, confirmed that the government had begun the electricity subsidy program for public hospitals. He also mentioned that plans are underway to extend the subsidy to private healthcare facilities across the country.
In August, the Federal Government approved a 50% subsidy for electricity usage in public hospitals and tertiary education institutions. Dr. Tunji Alausa, Minister of State for Health and Social Welfare, emphasized that the initiative aims to ease operational costs in hospitals and reduce the financial burden on patients.
Alausa made this announcement during the unveiling of the Electronic Health Records and Alternative Power Supply at the Lawal Jafaru Isah Emergency Complex in Barnawa, Kaduna State. This follows an earlier tariff hike by the Nigerian Electricity Regulatory Commission in April, which increased electricity costs for Band A consumers by 300%. Many public hospitals and educational institutions fall within this tariff band, prompting the government’s intervention.
Earlier, Prof. Bala Audu, President of the Nigerian Medical Association, lauded the subsidy for public hospitals but urged the government to include private hospitals as well. Hallah acknowledged that the subsidy had already been implemented for federal teaching hospitals, with discussions ongoing about extending it to private hospitals.
₦5.4 Trillion Saved from Fuel Subsidy Removal
Meanwhile, Governor Abiodun, during a special church service marking Nigeria’s 64th Independence Day celebration, highlighted the economic benefits of the fuel subsidy removal. He noted that the funds saved from the subsidy, which would have cost the country ₦5.4 trillion by the end of 2024, are now available for infrastructure development.
Abiodun emphasized that subsidizing fuel had been a drain on national resources, preventing critical investments in infrastructure and social services. Comparing the cost of the subsidy to the federal budget, he stressed that continued fuel subsidies would have severely limited the government’s ability to fund essential projects.
In his sermon at the service, Reverend Akinwande Odubena, the Diocesan Bishop of Ijebu North Anglican Diocese, reflected on the importance of leadership in driving national progress, drawing lessons from the biblical story of Elisha.
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