The University of Ibadan College Hospital (UCH) has been disconnected from the national electricity grid due to an outstanding debt of approximately N400 million. The Ibadan Electricity Distribution Company (IBEDC) confirmed the disconnection, stating it was necessitated by UCH’s failure to settle the significant arrears.
IBEDC spokesperson Busolami Tunwase explained that the hospital had previously committed to clearing the debt, but had not followed through on this promise. While expressing sympathy for UCH’s situation, Tunwase made it clear that the decision to disconnect the hospital was unavoidable, given the increasing financial pressures faced by IBEDC.
“We are faced with increasing pressure to meet our financial obligations to the market,” Tunwase said. “Unfortunately, due to the non-payment of significant debts, we had no choice but to take this action. However, we remain open to discussions with UCH and are willing to explore a flexible payment arrangement that could work for both parties.”
This latest disconnection is part of an ongoing issue between UCH and IBEDC, which has seen the hospital disconnected from power previously. In March 2024, UCH was disconnected for the third time in less than two months over a larger debt of N495 million, which had accumulated over a period of six years. Though the hospital initially denied owing such a large sum, it later acknowledged the debt and requested time to settle the arrears.
IBEDC emphasized that its financial health—and, by extension, the stability of the entire electricity distribution network—relies on timely payments from all customers, including major institutions like UCH. The company stated that the growing liquidity crisis within Nigeria’s power sector is directly linked to the non-payment of debts by large customers, which affects the entire system’s ability to provide stable and reliable electricity.
Tunwase further noted that the disconnection was a direct result of the hospital’s inability to settle the accumulated debts, and that UCH’s outstanding payments are contributing to the broader financial strain in Nigeria’s power sector. “IBEDC continues to advocate for timely payments from all customers. A stable and reliable power supply is dependent on the financial health of the sector,” she said.
The situation has sparked concern among patients and hospital staff, with some families of patients protesting the blackout. The disruption has come at a challenging time for UCH, which, like many public institutions, has struggled to manage rising energy costs, particularly following the recent tariff increases under the Band A category for electricity users.
As for the possibility of reconnection, Tunwase explained that the decision rests with the management of the hospital. IBEDC has indicated its willingness to engage in discussions to find a mutually agreeable solution but reiterated the need for UCH to clear its debt in order to restore power.
The issue underscores the ongoing challenges within Nigeria’s electricity sector, where mounting debts from major customers contribute to the broader financial instability affecting power distribution across the country.
