The Federal Government has announced plans to begin subsidizing electricity costs for universities and health institutions connected to Band A feeders.
According to The PUNCH, this was revealed by the Minister of Power, Adebayo Adelabu, during an appearance on a radio program broadcasted across various stations in Ibadan, Oyo State, on Saturday.
Adelabu clarified that while the government is committed to supporting these public institutions, the subsidy will not extend to private businesses operating within the premises of these universities and hospitals.
This move comes in response to concerns raised by public institutions following the government’s decision to eliminate subsidies for Band A customers.
The removal of subsidies came with an upgrade in their electricity supply to a minimum of 20 hours daily.
However, this change led to a significant increase in electricity bills, prompting complaints from institutions such as universities and public hospitals.
For instance, the College of Medicine of the University of Lagos and the Lagos University Teaching Hospital recently expressed outrage over what they termed an exorbitant electricity bill for May, issued by the Eko Electricity Distribution Company.
The institutions reported a drastic increase in their bill to approximately N280 million for May, a sharp rise from the less than N100 million they were accustomed to paying.
Similarly, the University of Lagos saw its monthly electricity bill soar from N180 million to N300 million, while the Federal University of Technology, Akure experienced a hike from N20 million to N60 million, as billed by the Ibadan Electricity Distribution Company.
The University of Benin also faced a steep increase, with its monthly tariff rising from N80 million to N250 million.
In July, Vice-Chancellor of Babcock University in Ogun State, Professor Ademola Tayo, disclosed that the institution paid a staggering N300 million for electricity in May, a cost he described as a significant threat to the quality of education in Nigeria.
Addressing these concerns, Adelabu acknowledged the financial burden these institutions are facing due to the heightened electricity tariffs.
“We know they are development institutions, they are social institutions,” the minister said.
However, he pointed out that private businesses operating within these institutions should not benefit from the subsidy.
“Inside health and educational institutions, private businesses are hiding. These people charge their customers commercially and they expect to be subsidized because they are located within the territories of these institutions,” Adelabu explained.
He continued, “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 subsidize 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 subsidizing a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair.”
The government’s decision to subsidize electricity costs for these institutions is seen as a necessary step to alleviate the financial strain caused by the recent tariff increases, while ensuring that only eligible public institutions benefit from the support.
