The Federal Government has announced plans to subsidize electricity for universities and health institutions on Band A feeders.
Minister of Power, Adebayo Adelabu, revealed this on Saturday during a radio program in Ibadan, Oyo State.
Read Also: BREAKING: Former Ogun Governor Gbenga Daniel Speaks On Seized Presidential Jets, Reveals ‘Level Of Involvement’ In Legal Dispute With Chinese Firm
However, 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 an upgrade to a minimum of 20 hours of daily electricity supply, universities and public hospitals have reported significant increases in their electricity bills.
Read Also: BREAKING: NNPCL Sends Fresh Message To Job Seekers On Employment Slots
For instance, the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital faced a combined bill of approximately N280 million for May, compared to under N100 million previously.
Similarly, UNILAG’s monthly bill surged from N180 million to N300 million, the Federal University of Technology, Akure saw an increase from N20 million to N60 million, and the University of Benin’s bill rose from N80 million to N250 million.
Babcock University reported a N300 million electricity bill for May, which it stated poses a serious threat to educational quality in Nigeria.
Adelabu acknowledged the difficulties these institutions face in managing their electricity expenses and assured that the government is addressing the issue.
“We know they are development institutions, they are social institutions. However, inside health and educational institutions, private businesses are hiding. These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions.
“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 subsidise 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 subsidising a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair,” he stated.
