Rising electricity costs are pushing Nigeria’s teaching hospitals to the brink, severely impacting healthcare services and medical training. Discriminatory electricity tariffs, erratic power supply, and skyrocketing diesel costs have left these vital institutions struggling to stay operational.

Power Crisis in Nigerian Hospitals

A Vanguard investigation revealed that some hospitals have seen their energy costs quadruple, creating a financial crisis that threatens patient care and essential medical research.

How the Crisis Began

The Nigerian Electricity Regulatory Commission (NERC) introduced a banding system to prioritize energy distribution. Under this structure, hospitals were placed in Band A, which promises up to 20 hours of daily electricity but comes with significantly higher tariffs.

Instead of relief, this classification has burdened hospitals with unsustainable electricity bills, leading to threats of disconnection and severe financial strain.

Hospitals Struggle Under Band A Tariffs

Despite the promise of 20-hour electricity, many hospitals receive inconsistent power supply, forcing them to turn to expensive diesel generators.

• University College Hospital (UCH), Ibadan was disconnected due to an outstanding electricity bill of N400 million, part of an accumulated N3.1 billion debt since 2019.
• National Orthopaedic Hospital, Lagos (NOHIL) saw its monthly electricity bill jump from N18 million to N45 million.
• Federal Medical Centre (FMC), Ebute Metta, spends N20 million monthly for just 4 hours of power daily.
• Lagos University Teaching Hospital (LUTH) now pays between N69 million and N252 million per month.
• University of Abuja Teaching Hospital (UATH) faces a monthly power bill of N35 million.

The Diesel Burden

With unreliable power, hospitals rely on generators, but the high cost of diesel further strains their budgets:

• Hospitals spend over N90 million monthly on diesel.
• Generators consume 20,000+ litres of diesel during grid failures.
• The cost of acquiring and maintaining generators has quadrupled.

Dr. Mustapha Alimi, Medical Director of NOHIL, lamented:
“Generators that once cost N100 million now cost between N400 to N500 million. Just starting one requires 60 litres of diesel.”

Government’s Unfulfilled Electricity Subsidy Promise

In 2024, the Federal Government announced a 50% electricity subsidy for hospitals. However, the policy is yet to take effect, leaving hospitals to bear the full burden of soaring energy costs.

Dr. Alimi stated:
“We are still waiting for the subsidy to materialize. Meanwhile, we’ve had to shut down power in non-essential areas just to cut costs.”

CMDs Demand Urgent Government Action

Healthcare administrators are calling on the Federal Government to intervene before the situation worsens.

• Prof. Fabanwo Adetokunbo (LASUTH CMD): “Our electricity bill has quadrupled, yet we cannot compromise on emergency and critical care services.”
• Dr. Bob Ukonu (UATH CMAC Chairman): “We are struggling to pay, which affects other essential hospital services.”
• Prof. Wasiu Adeyemo (LUTH CMD): “No hospital can survive under Band A tariffs. We need immediate relief.”

Alternative Solutions: Solar Energy and Energy Efficiency

Some hospitals are turning to renewable energy and load management strategies:

• NOHIL has installed 270 KVA of solar panels to support non-critical areas.
• NIMR researchers are personally funding inverter and solar panel installations.
• Hospitals are prioritizing energy efficiency, limiting power to critical areas only.

The Way Forward

Hospitals urge the Federal Government to prioritize:

• Immediate implementation of the promised electricity subsidy.
• Reclassification of hospitals from Band A to Band B to reduce tariffs.
• Investment in renewable energy solutions such as solar and wind power.
• A forensic audit of hospital expenses to ensure efficient use of resources.

As the crisis deepens, millions of Nigerian patients and healthcare workers face an uncertain future. Without swift government action, the country’s healthcare system risks collapse under the weight of unbearable electricity costs.