Power crisis: Hospitals groan as electricity costs soar, warn of higher healthcare costs

Hospitals in Nigeria are grappling with a severe power crisis, as escalating electricity tariffs and operational costs place immense financial pressure on healthcare providers. Operators warn that this burden could stifle investment, compromise the quality of care, and ultimately drive up healthcare costs for Nigerians.

Olubisi Oyeniran, the Managing Director and Chief Executive Officer of Iwosan Lagoon Hospitals, highlighted electricity as one of the most significant expenses in running a hospital, despite its critical role in delivering safe and effective healthcare. Speaking at the launch of the hospital's new outpost clinic in Alaro City, Epe, Lagos, Oyeniran urged the government to provide relief measures.

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Generally, we need an enabling environment for investments to thrive. For instance, power is one of the biggest issues in running healthcare because it comes at a huge cost. Medical equipment is imported with forex pressure, and this comes at a huge cost. The government can help.

He emphasized the non-negotiable need for reliable electricity in healthcare settings, citing the dependence of life-support equipment, diagnostic machines, and laboratories on uninterrupted power. Oyeniran called for targeted energy subsidies and policy adjustments to ease the operating burden on healthcare providers. The challenges are compounded by foreign exchange difficulties, which have increased the cost of imported medical equipment and supplies.

Unless these cost pressures are addressed, Oyeniran cautioned, healthcare providers may be forced to pass the increased expenses onto patients through higher charges, potentially reducing access to quality healthcare. Meanwhile, Iwosan Lagoon Hospitals is expanding its Alaro City clinic, with plans to develop it into a larger hospital with at least 10 beds within the next 12 months, offering 24-hour emergency care and specialized services.

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Within the next 12 months, we intend to develop into a larger hospital. This means we will have at least 10 beds to admit, a full laboratory and a radiology unit.