Govt will grant electricity subsidy to universities – Minister

Govt will grant electricity subsidy to universities – Minister

The Federal Government has announced plans to provide electricity subsidies for universities and public health institutions, specifically those connected to Band A feeders.

This announcement was made by the Minister of Power, Adebayo Adelabu, during a radio programme in Ibadan, Oyo State, on Saturday.

However, Adelabu emphasized that this subsidy will not extend to private enterprises operating within these institutions.

Following the removal of subsidies for Band A consumers, which increased their daily electricity supply to a minimum of 20 hours, universities and public hospitals have reported a significant rise in their electricity costs.

Recently, the College of Medicine at the University of Lagos and the Lagos University Teaching Hospital raised concerns over an exceptionally high electricity bill of approximately N280 million for May, issued by the Eko Electricity Distribution Company. This is a stark contrast to the usual bill of less than N100 million.

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Similarly, the monthly bill for the University of Lagos surged from N180 million to N300 million, while the Federal University of Technology, Akure saw an increase from N20 million to N60 million, according to the Ibadan Electricity Distribution Company. At the University of Benin, the electricity tariff escalated from N80 million to N250 million per month.

Prof. Ademola Tayo, Vice-Chancellor of Babcock University in Ogun State, highlighted the burden of these costs in July, revealing that the institution paid N300 million for electricity in May, describing the situation as a significant threat to the quality of education in Nigeria.

In response, Minister Adelabu acknowledged the financial challenges faced by these institutions and stated the government’s commitment to providing support.

“We understand the difficulties that universities and hospitals are experiencing with their electricity bills,” Adelabu said. “These are vital development and social institutions. However, we need to ensure that private businesses operating within these premises, which charge their customers commercially, are not benefiting from subsidies intended for educational and healthcare purposes.”

The Minister further explained that the government is working to compile accurate data to ensure that the subsidy only benefits the intended institutions.

“We are ready to subsidize those genuinely related to health and education, even if they are on Band A. DisCos will collect a portion of the payment, and the government will cover the rest. But it is crucial to have accurate data so that private enterprises do not unfairly profit from these subsidies,” he added.

Govt will grant electricity subsidy to universities – Minister