The federal government has unveiled a new framework to attract private-sector investment to provide reliable electricity to healthcare facilities across Nigeria.
This move, authorities noted, could improve healthcare delivery and reduce the impact of persistent power shortages in hospitals.
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The initiative, known as the Nigeria Power for Health Initiative (NPHI), was launched on Monday at the National Healthcare Electrification Investors Matchmaking Forum in Lagos.
Speaking at the event, the Minister of State for Health and Social Welfare, Iziaq Salako, said inadequate electricity remains a major challenge for healthcare facilities, affecting critical services such as surgeries, vaccine storage, laboratory diagnostics, oxygen delivery and emergency care.
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He said the new framework seeks to mobilise private capital to deploy and manage sustainable energy solutions across health facilities, reducing reliance on conventional government-funded infrastructure projects.
“Electricity is not merely a utility in a healthcare facility. It powers life-saving services and technologies that underpin healthcare delivery. When electricity fails, healthcare delivery stagnates,” Mr Salako said.
New model for healthcare electrification
Under the framework, healthcare facilities will adopt an Energy-as-a-Service (EaaS) model, under which private energy companies will finance, install, operate and maintain power systems while guaranteeing electricity supply to participating institutions.
Mr Salako said the arrangement would allow hospitals to focus on healthcare delivery while energy providers take responsibility for power infrastructure and maintenance.
He said the initiative is a key outcome of discussions held during the National Stakeholders’ Dialogue on Power in the Health Sector and noted that it represents a shift towards more sustainable financing for healthcare infrastructure.
Focus on tertiary hospitals
According to Mr Salako, the current phase of the programme will focus on federal tertiary health institutions, with plans to expand to primary and secondary healthcare facilities across the country.
He said the framework is built around blended financing, combining government support, development finance, climate finance, and private-sector investment to scale healthcare electrification nationwide.
To coordinate implementation, the government has established an Inter-Ministerial Steering Committee, a 24-member Inter-Agency Technical Committee, Facility Energy Management Teams and a Project Secretariat within the Federal Ministry of Health and Social Welfare.
Preparing hospitals for investors
Mr Salako said the ministry has also begun strengthening the investment readiness of federal hospitals by training directors of finance and accounts on energy economics, project finance, sustainable business models and investor engagement.
He noted that the government was creating conditions that would make healthcare facilities more attractive to investors and energy developers.
Mr Salako also acknowledged the support of the UK Partnership for Accelerating Climate Transitions (UK PACT) and Landell Mills International in developing the framework.
Addressing investors, commercial banks, development finance institutions, and climate financiers at the forum, Mr Salako said healthcare electrification presents significant investment opportunities while strengthening health outcomes.
Electricity in hospitals
According to the World Health Organisation (WHO), electricity is a fundamental requirement for safe and effective healthcare delivery, powering everything from lighting and communications to critical medical equipment used in surgeries, diagnostics, vaccine storage and emergency care.
The government’s latest push for healthcare electrification comes amid recurring power supply challenges in public hospitals, many of which have struggled with rising electricity costs, mounting debts, and prolonged blackouts.
In recent years, several tertiary health institutions have faced disruptions linked to electricity shortages.
Earlier this year, the University College Hospital (UHC) in Ibadan grappled with a prolonged blackout after it was disconnected from the national grid due to unpaid electricity bills.
The months-long outage disrupted clinical services, affected medical training, and triggered protests by students and health workers. Resident doctors also cited the prolonged power crisis as one of the reasons for industrial action at the facility.
Hospital authorities said the disconnection stemmed from accumulated electricity debts running into billions of naira, highlighting the growing financial burden energy costs imposed on public health institutions. During the blackout, departments relied heavily on generators and emergency power sources to sustain critical services.
Concerns over energy costs are not limited to UCH Ibadan.
Last year, the management of a teaching hospital in Akwa Ibom State disclosed that electricity bills accounted for about 40 per cent of its internally generated revenue, highlighting the pressure rising energy costs place on healthcare institutions already facing funding constraints.
Against this backdrop, the federal government has in recent years turned to alternative energy solutions for health facilities.
In February 2025, it announced plans to transition hospitals nationwide to solar energy following prolonged power disruptions at UCH, Ibadan, which severely affected clinical services during a major blackout.
The plan, which formed part of the 2025 health sector energy strategy, was to be implemented through the Rural Electrification Agency (REA) as a long-term response to rising diesel costs and unstable grid supply.
Intensifying its efforts, government officials had also disclosed efforts to solarise 371 Primary Health Care Centres (PHCs) across 16 states and the Federal Capital Territory as part of ongoing reforms in the sector. This is also aimed at reducing dependence on the national grid and improving service continuity in critical care units, theatres and laboratories.
More recently, in January 2026, the government inaugurated a 24-member Inter-Agency Technical Committee under the NPHI to coordinate the implementation of healthcare electrification projects nationwide.
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