- The Association of Nigerian Private Medical Practitioners has called for a 75%-100% electricity tariff subsidy for private hospitals.
- This request follows the government’s 50% subsidy for public hospitals, aiming to reduce operational costs.
The Association of Nigerian Private Medical Practitioners (ANPMP) has urged the Federal Government to extend its electricity tariff subsidy to private hospitals, proposing a subsidy of 75% to 100%.
This request follows the government’s recent decision to provide a 50% subsidy on electricity tariffs for public hospitals to help reduce their operational costs and alleviate the financial burden on patients.
Dr Kayode Adesola, National President of ANPMP, and Dr Debo Adebiyi, the Secretary, highlighted private hospitals’ crucial role in Nigeria’s healthcare system. They pointed out that private hospitals, which deliver about 70% of the nation’s healthcare services, face severe financial strain due to high energy costs.
“Over 40% of our overheads are spent on energy through electricity from DISCOs or self-generated power. The current subsidy only for public hospitals places private hospitals at a disadvantage,” said Dr. Adesola.
He emphasised that if the government believes public hospitals need a 50% subsidy, private hospitals should arguably receive a subsidy of between 75% and 100%.
The ANPMP leaders also noted the closure of several private hospitals in the past 18 months due to rising operational costs and a worsening brain drain among healthcare workers. “Private facilities that have served Nigerians for over a century should not be neglected now,” the statement read.
The ANPMP called on the government to ensure fairness in its support for the healthcare sector, arguing that extending the electricity subsidy to private hospitals would help maintain affordability and accessibility for many Nigerians who pay out-of-pocket for healthcare.
The recent surge in electricity tariffs has placed a significant financial burden on educational and healthcare institutions across Nigeria. The government’s 50% subsidy, announced by Minister of State for Health Tunji Alausa at the National Neo-Psychiatric Hospital in Kaduna State, is intended to ease the financial pressure on federal universities and teaching hospitals.
However, this subsidy is limited to 37 federal universities and seven affiliated teaching hospitals and will not extend to private entities.
The subsidy is part of the Federal Government’s Energizing Education Programme (EEP), which aims to address the unsustainable electricity costs public institutions face. This initiative is a response to rising electricity bills and the increased cost of diesel for generators.
The government previously removed electricity subsidies to prevent draining public resources and to foster a more efficient and competitive electricity market. However, eliminating subsidies is expected to significantly increase electricity tariffs, burdening consumers, especially those from low-income households.