Nearly a year after the Federal Government pledged to subsidize electricity for hospitals and educational institutions, the promise remains unfulfilled, leaving these vital facilities overwhelmed by massive electricity bills.
In August 2024, Minister of Power Adebayo Adelabu had assured that public hospitals and schools, even those under Band A, which enjoy up to 20 hours of electricity daily also would receive government support to ease their growing utility costs. However, as of July 2025, there is no evidence that any subsidies have been implemented.
Following the tariff hike that removed subsidies for Band A customers, many institutions have seen their electricity costs skyrocket. For instance, several teaching hospitals now reportedly pay over N300 million monthly—up from under N100 million before the policy shift.
Furthermore, Consumer rights advocates believe the subsidy promise was political rhetoric rather than policy. Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Protection Forum, accused the government of making empty statements without the necessary Federal Executive Council (FEC) approval.
“It was a mere political statement. The Nigerian Electricity Regulatory Commission (NERC) confirmed to me they were unaware of any such subsidy policy,” Samuel-Ilori said.
Prof. Dayo Ayoade, an energy expert at the University of Lagos, noted that while the subsidy could have helped, implementing and maintaining such a program would be difficult. He highlighted the risk of abuse and poor targeting, common with past subsidy schemes. He recommended a sustainable approach, including solar power installations to reduce dependence on the national grid.
Moreover, Rather than proceed with the promised subsidy, the government now appears to be pivoting to renewable energy. Bolaji Tunji, media aide to the Minister of Power, said the Rural Electrification Agency (REA) is leading efforts to install solar power systems at universities and hospitals.
So far, some of the installations include; 12MW at University of Maiduguri and Teaching Hospital (Borno),7MW at University of Calabar and Teaching Hospital (Cross River),3MWeach at Michael Okpara University, Federal University of Agriculture Abeokuta, and University of Abuja,2.5MW at Nigerian Defence Academy (Kaduna),1.5MW at Federal University Gashua (Yobe)
The REA initiative is also expected to rehabilitate infrastructure, install streetlights, and establish renewable energy training centers at 37 universities and 7 teaching hospitals.
The decision to sideline the original subsidy plan may be due to the broader financial strain on the government. In Q1 2025 alone, electricity subsidies cost the country over N500 billion, mostly covering Band B to E. Implementing a 50% subsidy for public hospitals and schools would cost an estimated N188.25 billion annually.
Meanwhile, many institutions remain vulnerable. The University of Lagos was disconnected by Eko Electricity Distribution Company in 2024 over unpaid bills. University College Hospital, Ibadan, reportedly owed N400 million. In May 2024, the Lagos State University Teaching Hospital and UNILAG’s College of Medicine were jointly billed N280 million—nearly triple their former charges.
With no immediate subsidy relief and mounting electricity debts, many institutions are calling on the government to revisit its promise and provide urgent, sustainable support to avoid worsening operational crises in Nigeria’s health and education sectors.
