FG approves 50% electricity subsidy for public hospitals

The Federal Government has approved a 50% electricity subsidy for public hospitals across Nigeria. This decision aims to reduce operational costs and ultimately alleviate the financial strain on patients.

Tunji Alausa, the Minister of State for Health and Social Welfare, announced the subsidy during a visit to the National Neo-Psychiatric Hospital in Barnawa, Kaduna, as reported by Daily Trust. He emphasized that this initiative is part of the government’s broader efforts to improve healthcare delivery in the country.

The subsidy comes in response to the increasing overhead costs faced by hospitals, with energy expenses accounting for more than 40% of these costs, according to the Association of Nigeria Private Medical Practitioners (ANPMP).

Rising electricity tariffs, particularly for those in Band A, and the soaring cost of diesel have further exacerbated the financial challenges faced by these institutions.

Hospital administrators have voiced concerns over the escalating energy costs, which have significantly contributed to higher operating expenses. This cost is often passed on to patients in form higher medical bills.