The Federal Government has approved a 50% electricity subsidy for public hospitals nationwide, a significant boost to the healthcare sector. The announcement was made by the Minister of State for Health and Social Welfare, Tunji Alausa, during a visit to the National Neo-Psychiatric Hospital in Barnawa, Kaduna State, Channels TV reports.
The subsidy is aimed at easing the financial burden on public hospitals, which often struggle to meet the rising costs of electricity. By reducing electricity expenses, hospitals can allocate more resources to patient care and essential services.
In addition to the electricity subsidy, the Federal Government also commissioned several projects at the National Neo-Psychiatric Hospital. These projects include the Electronic Health Records and Alternative Power Supply at the Lawal Jafaru Isah Emergency Complex and the solarisation of the dialysis unit, which includes a solar-powered borehole and a 10.2 KVA inverter.
While this is a positive development for the healthcare sector, it is important to note that the Federal Government has previously expressed concerns about the sustainability of electricity subsidies. In February 2024, the Minister of Power, Adebayo Adelabu, stated that Nigeria could no longer continue to subsidise electricity due to the rising cost of generation and the need for a more cost-effective tariff model.
The government’s indebtedness to electricity generating companies and gas producers has reached a staggering N3.3 trillion, and the subsidy for 2024 was estimated to cost around N3 trillion. Despite these challenges, the Federal Government has recognised the importance of supporting public hospitals and has taken steps to alleviate their financial burdens.
The approval of the 50% electricity subsidy is a welcome development for healthcare providers and patients alike. By reducing the cost of electricity, hospitals can improve their services and provide better care to the Nigerian population. However, it is essential for the government to continue exploring sustainable solutions to address the challenges facing the power sector and ensure that the country can meet its energy needs while maintaining affordable electricity prices.
