The Federal Government has announced plans to subsidize electricity for universities and public hospitals under Band A feeders, according to Minister of Power, Adebayo Adelabu. During a radio interview in Ibadan, Oyo State, Adelabu clarified that the subsidy would not extend to private businesses operating within these institutions.
Following the removal of subsidies for Band A customers and the subsequent upgrade to a minimum of 20 hours of electricity supply daily, universities and hospitals have faced soaring electricity bills. The College of Medicine of the University of Lagos and the Lagos University Teaching Hospital recently reported a combined bill of about N280 million for May, a significant increase from their previous payments of less than N100 million.
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Similarly, institutions like the Federal University of Technology, Akure, and the University of Benin have seen their monthly bills skyrocket, with the former rising from N20 million to N60 million and the latter from N80 million to N250 million. Babcock University also reported paying N300 million in electricity tariffs for May, with its Vice-Chancellor expressing concern over the impact on quality education.
Adelabu acknowledged the financial challenges faced by these institutions, emphasizing that the government is committed to supporting educational and health-related entities. However, he highlighted the need to distinguish between these institutions and private businesses operating within them. The minister stated that the government would subsidize the electricity costs for legitimate educational and healthcare services, with DisCos collecting a portion and the government covering the rest, but only after ensuring that private businesses are not benefiting unfairly from the subsidy.
