One Year After Promise, FG Yet To Subsidise Electricity For Hospitals, Universities

Nearly a year after pledging to subsidise electricity costs for Nigeria’s hospitals and tertiary institutions, the Federal Government has yet to deliver on its promise, leaving many public facilities overwhelmed by soaring energy bills.

In August 2024, Minister of Power Adebayo Adelabu announced plans to subsidise electricity for government-owned hospitals and universities, even those on Band A feeders, where subsidy removal had tripled monthly energy bills. Some teaching hospitals now pay up to ₦300 million monthly, up from less than ₦100 million.

Despite reiterations by former Health Minister Dr. Tunji Alausa that a 50% subsidy had been approved, implementation remains absent, forcing institutions to either accrue debt or face disconnection, as was the case with the University of Lagos.

Sources suggest Adelabu’s declaration was made without Federal Executive Council (FEC) approval, with critics describing it as a political soundbite rather than a funded policy.

“It’s a mere political or exciting statement from the minister,” said Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Protection Forum.

Energy expert Prof. Dayo Ayoade noted that while subsidies could help, poor targeting and corruption risks often derail such initiatives. He recommended solar adoption as a more sustainable solution.

In fact, new data suggests the Ministry of Power may be shifting focus to renewable solutions. According to Adelabu’s media aide, Bolaji Tunji, the Rural Electrification Agency (REA) is now leading solar installations in select institutions.

Some completed or ongoing projects include:

University of Maiduguri & Teaching Hospital (12MW)

University of Calabar & Teaching Hospital (7MW)

Michael Okpara University, Umudike (3MW)

FUNAAB, Abeokuta (3MW)

University of Abuja (3MW)

Nigerian Defence Academy, Kaduna (2.5MW)

Federal University, Gashua (1.5MW)

Still, many institutions remain unpowered, prompting calls for urgent clarity from the Federal Government on whether it intends to follow through with its subsidy promise or fully embrace off-grid alternatives.