NIGERIA’S premier health institution, the University College Hospital, in Ibadan, is still in the eye of the storm despite the partial resolution of the well-advertised disconnection issue it has with the Ibadan Electricity Distribution Company. For 17 days, IBEDC disconnected UCH for reportedly owing the utility company a cumulative debt of N495 million. The Federal Government should help UCH out with higher votes since public health institutions charge minimal fees.
According to reports, the UCH management recently paid N80 million out of the N495 million debt to salvage the situation. Earlier, it had stated that it owed only N27m. The disagreement led to the disconnection. This caused reduced operations and a strike threat by the Association of Resident Doctors.
The UCH remains an important health superstructure at this crucial time when Nigeria’s primary healthcare is near comatose. This places huge pressure on the hospital, especially for indigent Nigerians who cannot travel overseas for medical tourism. The state and local governments must reduce the burden on the hospital and its personnel by improving their primary health centres.
Unfortunately, the past has caught up with public institutions in Nigeria, which are notorious for not paying electricity bills.
In February, the Chief of Army Staff, Taoreed Lagbaja, pleaded with the Minister of Power, Adebayo Adelabu, for the liquidation of the N42 billion debt the Nigerian Army owed various DisCos. Lagbaja had complained that the corpses kept in the Army morgues were decaying and smelling. In response, Adelabu said the debt would be restructured but not written off.
Also in February, the Abuja Electricity Distribution Company disclosed that the State House and 86 ministries, departments and agencies owed it N47.1 billion in unpaid bills. The AEDC listed the Presidential Villa as owing the DisCo the sum of N923.9 million; National Security Adviser office, N95.9 million; Ministry of the Federal Capital Territory, N7.57 billion, while Adelabu’s Ministry of Power owed N78 million. This is a bad precedent by the Presidency and other public institutions. In mitigation, this provoked Tinubu to promptly pay off the debt, later reconciled at N342.3 million.
Undoubtedly, the DisCos are partially responsible for the cyclical failings in the sector by not metering their customers. In turn, DisCos depend on the discredited and primitive estimated billings, a recipe for chaos, cheating of consumers and poor attitude to payment.
Unfortunately, total metering is not going to happen anytime soon. For instance, the Eko Electricity Distribution Company says it will only meter 600,000 of its clientele in the next five years. The Nigerian Electricity Regulation Commission says there is a shortfall of eight million unmetered consumers out of the registered 12.82 million users nationwide.
In contrast, subscribers are not owing the telecoms because technology is being maximised. Unless the DisCos meter consumers, indebtedness will not disappear from the sector. NERC should enforce a timeline for the DisCos to achieve the metering scheme.
Indeed, Nigeria’s electricity sector is plagued by underperformance. Apart from insufficient metering, the national grid has collapsed twice this year. Under Tinubu’s predecessor – Muhammadu Buhari – it collapsed 98 times.
Nigeria has the potential to generate 12,000 megawatts but cannot wheel more than 5,000MW to the sole national grid. This is responsible for the mass darkness in Africa’s largest economy. It is an awful outcome compared to Egypt and South Africa, both with over 58,000MW each.
The generation companies are hampered by inadequate gas supply. The government compounded the situation in midweek by increasing the base price of gas from $2.18 to $2.42.
Ultimately, UCH and other public institutions should always settle their bills. This will help to break the vicious cycle of gross indebtedness that has stifled the power sector.
