The Federal Government has announced plans to begin subsidizing electricity for universities and health institutions connected to Band A feeders.
This was revealed by the Minister of Power, Adebayo Adelabu, during a radio program in Ibadan, Oyo State, on Saturday. However, Adelabu clarified that the subsidy will not extend to private businesses operating within these universities and hospitals.
Following the removal of electricity subsidies for Band A customers and the upgrade of their supply to at least 20 hours per day, universities and public hospitals have complained about a significant increase in their electricity bills.
For example, the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital expressed concern over receiving a bill of approximately N280 million for May, compared to the less than N100 million they used to pay. UNILAG’s monthly bill rose from N180 million to N300 million, while the Federal University of Technology, Akure saw its bill increase from N20 million to N60 million. The University of Benin also faced a tariff hike from N80 million to N250 million per month. Similarly, Babcock University’s Vice-Chancellor, Prof. Ademola Tayo, reported that the institution paid N300 million in electricity tariffs for May, raising concerns about the impact on the quality of education in Nigeria.
Addressing these concerns, the minister acknowledged the financial difficulties faced by universities and hospitals in paying their electricity bills. He emphasized that while the government is willing to subsidize electricity costs for genuine health and educational institutions, it will not do so for private businesses operating within them.
“We understand that these are development and social institutions,” Adelabu said. “However, some private businesses within these institutions are charging their customers at commercial rates while expecting subsidies because of their location. We are saying no to that. We will ensure proper metering and data collection to differentiate between health and educational activities and private businesses. For legitimate institutions, the government will cover part of the electricity costs, but private businesses will not receive subsidies, as that would lead to unfair profits.”
