FG to subsidize electricity for universities, hospitals

The Federal Government announced it will begin subsidizing electricity for universities and health institutions classified under Band A feeders.

Minister of Power, Adebayo Adelabu, made the announcement on Saturday during a radio program broadcast across various stations in Ibadan, Oyo State.

Adelabu clarified that this electricity subsidy would not extend to private businesses operating within these institutions. The decision follows complaints from universities and public hospitals about a dramatic increase in their electricity bills after the removal of subsidies for Band A customers, who now receive a minimum of 20 hours of electricity per day.

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Recently, institutions like the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital reported a steep rise in their bills, with the Eko Electricity Distribution Company charging them approximately N280 million for May, up from under N100 million.

Similarly, the University of Lagos saw its monthly bill soar from N180 million to N300 million, while the Federal University of Technology, Akure, faced an increase from N20 million to N60 million. The University of Benin experienced a hike from N80 million to N250 million, and Babcock University paid N300 million in May, a situation that Prof. Ademola Tayo described as a significant threat to the quality of education.

Adelabu acknowledged the challenges faced by these institutions but emphasized that the subsidy would only cover those directly related to health and education, excluding commercial entities within these premises. “We know they are development institutions, they are social institutions. However, inside health and educational institutions, private businesses are hiding. These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions,” Adelabu said.

He added, “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.”