President Bola Ahmed Tinubu has approved a 50% subsidy on electricity bills for universities, teaching hospitals, polytechnics, and colleges of education across Nigeria.
This decision is certain to come as a relief to many institutions that have been struggling with the soaring cost of electricity, which has strained their budgets and led to disruptions in essential services.
The announcement was made in Kaduna by the Minister of State for Health, Dr. Tunji Alausa, during the inauguration of several key health sector projects, including the National Ear Care Centre.
Dr. Alausa emphasised that the subsidy is part of the government’s broader commitment to revitalizing the education and health sectors under the Renewed Hope Agenda (RHA).
In recent years, many Nigerian universities and teaching hospitals have grappled with rising electricity bills, exacerbated by a reduction in government subsidies.
This has placed a heavy financial burden on these institutions, some of which have reported electricity bills running into hundreds of millions of naira monthly.
For instance, the University College Hospital (UCH) in Ibadan faced a bill of N400 million from the Ibadan Electricity Distribution Company (IBEDC).
Similarly, Ahmadu Bello University (ABU) in Zaria reported a monthly electricity bill of N300 million, amounting to an annual cost of N3.6 billion to the Kaduna Electricity Distribution Company (KADCO).
These exorbitant costs have led to disputes between institutions and electricity distribution companies, with some universities even experiencing power cuts due to unpaid bills.
The University of Lagos was disconnected by the Eko Electricity Distribution Company (EKEDC) over a debt exceeding N1 billion, while the university had already spent N180 million on electricity.
These financial challenges have sparked protests among students and staff, who have expressed their frustration with the government’s cost-cutting measures, including the shift in the source of electricity supply.
Analysts say that the 50% subsidy approved by President Tinubu is expected to bring much-needed relief to these institutions, significantly reducing the financial burden on universities and teaching hospitals.
Dr. Alausa assured that the Ministry of Power is currently working out the modalities for the implementation of the subsidy. While specific details on the funding mechanism are yet to be disclosed, the government’s commitment to addressing the power challenges faced by public institutions is clear.
During the inauguration ceremony in Kaduna, Dr. Alausa highlighted the government’s ongoing efforts to revamp the health sector, noting that the newly opened facilities at the National Ear Care Centre are essential for providing comprehensive and affordable healthcare to Nigerians.
The projects include a molecular laboratory, an oxygen plant, a student residence, and an auditorium, all aimed at enhancing the Centre’s capacity to deliver top-notch healthcare services.
Dr. Alausa also spoke about the Federal Ministry of Health’s plans to implement a nationwide electronic medical system, which will transform patient care and data management.
He reiterated President Tinubu’s commitment to fulfilling his promises to Nigerians, particularly in the health sector.
“President Bola Ahmed Tinubu is committed to revamping all the sectors of our economy, especially in the health sector where he is giving us all we want,” Dr. Alausa said.
“Every promise he made to Nigerians, he will fulfill them and he’s already fulfilling a lot of his promises.”
