Federal Government Rolls Out Electricity Subsidy for Public Hospitals Amid Fuel Savings, Ogun Governor Reveals

The Federal Government of Nigeria has commenced the implementation of electricity subsidies for public hospitals across the country, in a bid to cushion the impact of rising energy costs on the health sector. This development was confirmed on Sunday by Tashikalmah Hallah, Senior Adviser of Media and External Relations to the Coordinating Minister of Health and Social Welfare.

Hallah disclosed that the subsidy programme, which was introduced to alleviate the operational costs of public hospitals, is already underway. The government also has plans to extend the relief to private hospitals. “The subsidy for all federal teaching hospitals and medical centres has started,” Hallah said. “The issue now is how to subsidise electricity for the private sector. The government is thinking of bringing the private sector into the picture.”

In August, the Federal Government approved a 50 per cent electricity subsidy for public hospitals and tertiary education institutions, aiming to soften the blow of high operational costs exacerbated by rising energy tariffs. The Minister of State for Health and Social Welfare, Dr Tunji Alausa, emphasised that the initiative seeks to reduce the financial strain on healthcare institutions and, by extension, their patients.

Alausa made this announcement during a ceremony at the National Neo-Psychiatric Hospital in Barnawa, Kaduna State, where the Electronic Health Records and Alternative Power Supply system were unveiled at the Lawal Jafaru IsahEmergency Complex.

The move follows a significant rise in electricity tariffs earlier this year. In April, the Nigerian Electricity Regulatory Commission increased the tariff for Band A customers—from N68/KWh to N225/KWh—representing a 300 per cent hike. Public hospitals and tertiary education institutions, many of which are on Band A feeders, found themselves grappling with unsustainable energy costs.

Responding to widespread outcry, including reports from hospitals unable to manage soaring bills, Minister of Power Adebayo Adelabu confirmed that the government would extend its electricity subsidy to institutions on Band A feeders, including public hospitals and educational facilities.

The Nigerian Medical Association, led by President Prof BalaAudu, has praised the subsidy but urged the government to also consider including private hospitals in the initiative. Hallahechoed these sentiments, confirming that while subsidies for public hospitals have commenced, discussions on extending the programme to the private sector are ongoing.

In a related development, Ogun State Governor Dapo Abiodunannounced that Nigeria had saved N5.4tn by removing the fuel subsidy on Premium Motor Spirit (petrol). Speaking during a Special Church Service marking Nigeria’s 64th National Day at the Cathedral Church of St. Peter in Abeokuta, Abiodun lauded President Bola Tinubu’s decision, noting that the savings would now be channelled into infrastructure development.

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

He further highlighted the stark contrast between the N5.4tn that would have been spent on the subsidy and the Federal Government’s N6.7tn infrastructure budget for the year, stressing how critical it was for Nigeria to redirect these funds to vital sectors like healthcare, education, and public services.

At the same event, the Diocesan Bishop of Ijebu North Anglican Diocese, Reverend Akinwande Odubena, delivered a sermon titled ‘Leading Our Nation Forward in a Time Like This: Lessons from Elisha’s Leadership’. Drawing from 2 Kings, Chapter 7, Verse 1, Reverend Odubena underlined the importance of visionary leadership in securing a prosperous future for Nigeria.

As both the health and energy sectors adjust to the government’s evolving subsidy policies, Nigeria continues to navigate a challenging economic landscape, balancing the need for fiscal prudence with the demands of public service provision.