The Federal Government has announced that it will subsidize electricity costs for public hospitals, approving a 50% subsidy on electricity consumption nationwide.
Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced the subsidy on Thursday, stating that it aims to reduce operational costs for public hospitals and alleviate the burden on patients.
The subsidy follows Minister of Power Adebayo Adelabu’s earlier promise to support hospitals and universities, even those on Band-A feeders.
However, Adelabu clarified that private businesses operating within these institutions will not be subsidized, emphasizing the need to meter and differentiate between genuine institutional usage and commercial activities.
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“We know they are development institutions, they are social institutions. But inside the health and educational institutions, private businesses are hiding under them. These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions.
“We said no, go and do a proper search and meter everybody. For the ones that are properly health and education-related, we are ready to subsidise them, even if they are on Band A. We are compiling our data, DisCos will collect a certain amount and the government will pay the balance. But we must get the data right so that we are not subsidising a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair,” he stated.
The government’s move is seen as a relief for public hospitals struggling to pay electricity bills, but private businesses within these institutions will need to bear their own costs. The subsidy is part of efforts to support critical social institutions and ensure they can continue providing essential services without undue financial strain.
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