FG begins electricity subsidy for public hospitals

The Federal Government said on Sunday that it had begun the implementation of electricity subsidies for public hospitals nationwide.

This came as the Governor of Ogun State, Dapo Abiodun, stated that removing the subsidy on Premium Motor Spirit, popularly called petrol, saved Nigeria N5.4tn.

The Senior Adviser of Media and External Relations to the Coordinating Minister of Health and Social Welfare, Tashikalmah Hallah, told one of our correspondents on Sunday that subsidy on electricity for public hospitals had begun.

Hallah also said the government plans to subsidise electricity for private hospitals nationwide.

In August, the Federal Government approved a 50 per cent subsidy for electricity consumed in public hospitals and tertiary education institutions nationwide.

The Minister of State for Health and Social Welfare, Dr Tunji Alausa, announced that the Federal Government had approved the 50 per cent electricity subsidy for public hospitals.

According to Alausa, the gesture aims to reduce the running costs for public hospitals and alleviate the impact on patients.

Alausa stated this at the National Neo-Psychiatric Hospital in Barnawa, Kaduna State while unveiling the Electronic Health Records and Alternative Power Supply at the Lawal Jafaru Isah Emergency Complex.

In April, the Nigerian Electricity Regulatory Commission announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225/KWh, which represented a 300 per cent increase.

Band A customers enjoy electricity supply for at least 20 hours per day.  Most public tertiary hospitals and education institutions in Nigeria are under this band.

However, many of those institutions had cried out over soaring electricity bills following the new policy.

After a report by The PUNCH on the excruciating effects of these unaffordable bills, the Federal Government through the Minister of Power, Adebayo Adelabu, promised that the Federal Government would subsidise electricity in hospitals and government-owned education tertiary institutions, even if they are on Band A feeders.

The President of the Nigerian Medical Association, Prof Bala Audu, earlier commended the subsidy but urged the government to consider subsidising electricity for private hospitals.

When contacted on the development on Sunday, Hallah said, “The subsidy for all federal teaching hospitals and medical centres has been started. The issue now is how to subsidise (electricity) for the private sector. The government is thinking of bringing the private sector into the picture.

“So the subsidy for public hospitals has started, but I can’t confirm what percentage because I don’t have those details, but I’m aware that subsidies for public hospitals have started. There is a plan that private hospitals will also be incorporated, but it has not been finalised,” he said.

N5.4tn saved

In a similar development, the Ogun State governor said the decision to remove fuel subsidy saved Nigeria N5.4tn.

Abiodun stated this during a Special Church Service on Sunday to mark the 64th National Day celebration at the Cathedral Church of St. Peter, Ake, Abeokuta.

According to him, the money saved is now available for the development of infrastructure across the country.

He said, “Mr President removed the subsidy, which, if not curbed, would have cost us N5.4tn by the end of 2024. We have been busy subsidising our neighbours; these are funds that can be invested in improving our infrastructure and other social services.

“Our budget this year for infrastructure was N6.7tn, meanwhile, the subsidy would have consumed N5.4tn, if not curbed or checked.”

Abiodun said it would have been devastating for Nigeria to pay such a huge amount in comparison to the Federal Government’s budget of N6.7tn for the same fiscal year.

Earlier in his message titled ‘Leading Our Nation Forward in a Time Like This: Lessons from Elisha’s Leadership’, the Diocesan Bishop of Ijebu North Anglican Diocese, Reverend. Akinwande Odubena, who also read from the book of 2 Kings, Chapter 7, Verse 1, noted that leadership plays a crucial role in the future of any country.