In August 2024, the Minister of Power, Adebayo Adelabu, announced that public hospitals and universities would receive subsidised electricity. This came after many of them were moved to Band A, which led to a sharp increase in their electricity bills.
He stated that even institutions on higher tariff bands would benefit. According to him, distribution companies would collect a part of the payment while the government would cover the rest.
No Action, No Relief
One year later, no subsidy has been delivered. Most hospitals and universities still pay huge amounts for electricity. In some cases, bills have risen from ₦100 million to ₦300 million monthly. Many institutions are finding it hard to cope.
Despite the promise, no official policy has been implemented. Several insiders believe the Minister made the announcement without Federal Executive Council approval. A consumer group even called the statement “a political stunt.”
Why the Delay?
Energy experts say subsidy programs are often misused and hard to manage. Professor Dayo Ayoade from the University of Lagos says the government may have paused the plan because it lacked sustainability. He warned that giving money directly to institutions or distribution companies without strong oversight could lead to waste.
Institutions Are Feeling the Pain
Administrators at some public universities and hospitals confirmed that no subsidy has reached them. High electricity bills are affecting their daily operations and budgets. Many now fear disconnection.
Last year, the University of Lagos faced a power cut due to unpaid electricity bills. This situation is not unique several institutions across Nigeria face similar risks.
A Shift to Solar Power?
The Power Ministry appears to be focusing on solar energy instead. The Rural Electrification Agency has launched projects in several universities and teaching hospitals. These include:
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University of Maiduguri and Teaching Hospital – 12MW
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University of Calabar and Teaching Hospital – 7MW
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Michael Okpara University of Agriculture – 3MW
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Federal University of Agriculture, Abeokuta – 3MW
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University of Abuja – 3MW
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Nigerian Defence Academy, Kaduna – 2.5MW
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Federal University Gashua – 1.5MW
While solar power offers long-term savings, it does not solve the current crisis for institutions struggling to pay bills.
What’s Next?
Stakeholders are urging the government to revisit the subsidy promise. They want a clear, sustainable, and transparent plan. Without this, hospitals and schools may continue to suffer.
The government must act fast not just by planning long-term solutions, but also by delivering the relief it promised.
