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Rising Electricity Costs Crippling Teaching Hospitals

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Surging electricity bills are crippling Nigeria’s teaching hospitals, forcing administrators to make tough choices between sustaining medical services and supporting the rigorous training of future doctors. As power costs consume a growing share of hospital budgets, concerns mount over the long-term viability of quality healthcare delivery and medical education in the country.

The combination of discriminatory electricity tariffs, erratic power supply, and soaring diesel costs has pushed Nigeria’s teaching hospitals to the edge. These institutions, which are central to the nation’s healthcare system, not only deliver vital medical services but also serve as training grounds for the next generation of healthcare professionals. With mounting financial pressures, their ability to sustain operations and education is increasingly jeopardized.

Reports indicate that the financial impact on several hospitals has been severe, with operational costs skyrocketing to four times their previous levels. In response to Nigeria’s ongoing energy crisis, the Nigerian Electricity Regulatory Commission (NERC) introduced a classification system—dividing consumers into Bands A, B, C, and D—to regulate power supply according to expected hours of availability. However, this has done little to ease the burden on struggling healthcare institutions.

Consequently, most hospitals have been classified under Band A, which, in theory, guarantees up to 20 hours of electricity daily but comes with significantly higher tariffs. However, for many hospital administrators, this classification is a double-edged sword—while it promises improved power supply, the financial strain of exorbitant electricity costs makes sustaining operations increasingly difficult.

Read also: FG Allocates $600m Annually For Electricity Subsidy

While some of the hospitals are continuously faced with disconnection threats from power companies, some are struggling to pay the huge monthly bills that have tripled and, in some cases, quadrupled.

Findings showed that these hospitals are struggling to stay afloat amid rising costs and dwindling resources, with potentially dire consequences for patient care.

Despite the fact these hospitals are looking at alternative power supply, including renewable energy, majority now apply load-shedding options to service every unit of their hospitals.

Not too long ago, the University College Hospital, Ibadan, suffered disconnection due to unpaid electricity bills owed Ibadan Electricity Distribution Company, IBEDC.

The hospital was disconnected by the power company following an outstanding debt of nearly N400 million, out of a staggering N3.1 billion accumulated bill since 2019.

According to findings, the hospital is billed between N50 and N60 million every month. At medical institutions like the Nigeria Institute of Medical Research, NIMR, monthly bills sometimes reach between N44 million and N49 million.

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