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    HomeBusinessEconomyFederal Government Approves 50% Electricity Subsidy for Public Hospitals; Eko DisCo Disconnects...

    Federal Government Approves 50% Electricity Subsidy for Public Hospitals; Eko DisCo Disconnects UNILAG Over N300m Debt

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    The Federal Government has sanctioned a 50 percent subsidy on electricity for public hospitals nationwide. This decision aligns with a commitment made by the Minister of Power, Adebayo Adelabu, to reduce electricity costs for hospitals and universities, even those on Band-A feeders.

    However, amidst this development, the Eko Electricity Distribution Company (Eko DisCo) disconnected power to the University of Lagos (UNILAG), Akoka, due to unpaid electricity bills, despite the government’s pledge to assist public universities with their electricity expenses.

    Dr. Tunji Alausa, the Minister of State for Health and Social Welfare, announced the subsidy approval during a visit to the National Neo-Psychiatric Hospital in Barnawa, Kaduna State. He was there to inaugurate the electronic health records system and an alternative power source at the Lawal Jafaru Isah Emergency Complex, alongside a solarization project for the dialysis unit, including a solar-powered borehole.

    According to Dr. Alausa, this subsidy aims to ease the operational costs of public hospitals and lessen the financial burden on patients. It also comes after Power Minister Adelabu’s earlier statement that the government would not subsidize private businesses operating within universities and hospitals. Adelabu emphasized that while the government is committed to supporting health and educational institutions, it is also ensuring that private enterprises within these institutions do not benefit from these subsidies, as they often charge their customers commercially.

    Meanwhile, despite the government’s promise, UNILAG faces power disconnection due to a staggering N300 million electricity bill. The university, which was previously paying between N150 million and N180 million monthly under the “Band B” tariff, saw its June bill nearly double after being upgraded to “Band A,” resulting in a significant financial strain.

    UNILAG’s management expressed frustration over the sudden disconnection by Eko DisCo on August 27, despite a recent payment of N180 million on August 20 and ongoing negotiations. The institution’s management assured the campus community that efforts are underway to resolve the issue, and announced that power supply would be rationed until further notice.

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