In a significant policy shift, the Nigerian government has announced that it will begin subsidising electricity costs for universities and public health institutions that fall under the Band A electricity feeders. This decision, disclosed by the Minister of Power, Adebayo Adelabu, during a Saturday broadcast in Ibadan, Oyo State, comes in response to widespread concerns over the soaring energy bills faced by these institutions following the recent removal of subsidies.
However, Adelabu made it clear that this relief would not extend to private businesses operating within these educational and healthcare facilities. He stressed that only the portions of the institutions directly related to health and education would benefit from the subsidy, ensuring that private enterprises charging commercial rates would not receive government support.
The outcry over electricity costs has been mounting since the Federal Government’s decision to eliminate subsidies for Band A customers while upgrading their power supply to a minimum of 20 hours per day. Universities and hospitals have been hit particularly hard, with some institutions reporting monthly electricity bills that have more than tripled.
The University of Lagos College of Medicine and the Lagos University Teaching Hospital recently made headlines after receiving a combined bill of approximately ₦280 million for May, a staggering increase from the less than ₦100 million they had previously paid. Similarly, the Federal University of Technology, Akure saw its monthly electricity charges jump from ₦20 million to ₦60 million, while the University of Benin experienced a spike from ₦80 million to ₦250 million.
Babcock University in Ogun State also raised alarms over the impact of rising electricity tariffs on the quality of education. In July, the Vice-Chancellor, Professor Ademola Tayo, revealed that the institution had paid an astonishing ₦300 million in electricity bills for May alone, warning that such costs posed a serious threat to the viability of higher education in Nigeria.
Addressing these concerns, Minister Adelabu acknowledged the financial strain on universities and hospitals, stating, “We know they are development institutions, they are social institutions.” He also highlighted the presence of private businesses within these facilities, noting that such enterprises, which operate commercially, should not benefit from subsidies intended for public services.
“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,” Adelabu explained.
The minister’s statement underscores the government’s commitment to ensuring that public institutions receive necessary support, while also safeguarding public funds from being diverted to private commercial interests. As the government works to compile accurate data and implement the subsidy, universities and hospitals across the country will be looking forward to some relief from their escalating energy costs.
