FG grants 50% electricity subsidy to ease financial burden on public hospitals

Joy Agwunobi

The federal government has approved a 50 percent  electricity subsidy for public hospitals across Nigeria, providing much-needed relief amid rising energy costs.

Tunji Alausa, the minister of State for Health and Social Welfare, disclosed  the decision during a visit to the National Neo-Psychiatric Hospital in Barnawa, where he noted that the move is designed to ease the financial burden on healthcare facilities and, ultimately, their patients.

According to the Association of Nigeria Private Medical Practitioners (ANPMP), energy expenses make up more than 40 percent of hospital operating costs.  With rising electricity tariffs especially for Band A customers  and  the increasing  diesel prices, hospitals have struggled to keep their costs down; many hospitals have been forced to pass their increased energy costs on to patients in the form of higher medical bills, adding to the financial strain of seeking care. 

Alausa explained that the new subsidy is expected to significantly reduce energy expenses, enabling hospitals to allocate more resources toward patient care and essential medical services. By alleviating the financial strain from high electricity costs, this initiative aims to enhance the quality of care provided by public hospitals and make healthcare more affordable for millions of Nigerians.