The Nigerian government has clarified that its planned electricity subsidy for higher education institutions will only be applicable to 37 federal universities and seven teaching hospitals affiliated to some of them.
The government also said that private companies within the selected institutions will not benefit from the subsidy.
The proposed subsidy comes in response to complaints from universities and teaching hospitals that the prices charged by electricity distribution companies are unsustainable.
The proposed 50 percent subsidy was first mentioned by the Minister of State for Health, Tunji Alausa, who announced it on Thursday at the National Neopsychiatric Hospital in Barnawa, Kaduna State.
He also shared the information on his X account.
“In line with the mission of President @officialABAT and GCFR to provide comprehensive and effective healthcare to Nigerians, the Federal Government will offer a 50% subsidy on power costs for all federal facilities. We hope this subsidy will help our facilities provide 24-hour healthcare and improve their service delivery.”
However, he did not provide further details on the subsidy. When asked to clarify Alausa's statement, his spokesperson, Mojiyin Adebajo, said: “There is no comment for now. An announcement with further clarification will be shared later.”
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However, Ministry of Power spokesperson Bolaji Tunji provided the details in response to a query from PREMIUM TIMES.
“What the honourable Minister of Energy said was that there would be a subsidy and it could be equal or less,” Tunji said. “Therefore, if the honourable Minister of Health said so, then further clarification should be sought.”
The Ministry of Energy spokesperson said the initiative will be part of the federal government's Energy Education Programme (EEP) and will only cover essential services of the institutions. “You know that within some of these institutions, there are some commercial entities and private companies that charge customers for services rendered, so the government would not extend the subsidy to these entities,” Tunji said.
He said the Minister of Energy, Adebayo Adelabu, has requested precise data from the institutions that would benefit from the subsidy.
Beneficiaries
Minister of State for Health and Social Welfare, Tunji Alausa (PHOTO CREDIT: @DrTunjiAlausa)
While Mr. Alausa said the subsidy would apply to “all federal facilities,” Mr. Tunji explained that the EEP is currently structured to support 37 federal universities and seven teaching hospitals; an indication that the policy has not been fully synchronized across relevant ministries and agencies.
“EEP is an initiative of the Federal Government of Nigeria being implemented by the Rural Electrification Agency, an agency of the Ministry of Power, which seeks to provide independent, dedicated and off-grid power plants, as well as rehabilitation of existing distribution infrastructure, to supply clean and reliable power to 37 federal universities and seven affiliated teaching hospitals,” he said.
“In addition, it will provide street lighting for illumination and security, as well as a world-class renewable energy training center at each of the EEP beneficiary institutions, and will conduct STEM internships for selected female students.”
“We are waiting for the implementation,” say Hospital and School
LUTH logo
In July, Newslodgereported that the College of Medicine, University of Lagos (CMUL) and the Lagos University Teaching Hospital (LUTH) protested against the “outrageous electricity bill” charged by the Eko Electricity Distribution Company (EKEDC) following the increase in electricity tariff for Band A customers. Other teaching hospitals across the country raised similar concerns.
Health institutions told Newslodgethat they were presented with a bill of about N280 million for May instead of the less than N100 million they usually paid.
Following the announcement by the Ministry of Health, this newspaper contacted the two institutions again, who praised the initiative but indicated that implementation had not begun.
CMUL Provost David Oke and LUTH Chief Medical Director Wasiu Adeyemo told Newslodgethat the initiative, when implemented, would be a great relief to their institutions.
Mr Oke said: “If we have to continue paying what we have paid in the last three months, it would be impossible to continue running the university because we do not generate income, unlike other institutions.”
Teachers said that as public institutions they are waiting for the implementation of the policy as they can no longer afford the current electricity charges.
“The fact is that the government has listened to our requests, especially since the reason we have public hospitals is to serve the public. More than 90 percent of Nigerians cannot afford to go to private facilities, so there is nothing that can be done without electricity.
“The electricity subsidy will be a great relief. We congratulate President Bola Tinuby and the Ministry of Health and Energy,” Adeyemo said.
“We have also been promised that hospitals will need renewable energy. Some hospitals will benefit this year and others next year.”