Rising electricity tariffs and operating costs are squeezing Nigerian hospitals, and operators warn the burden could stall expansion, weaken quality of care and ultimately raise medical bills for patients.
Olubisi Oyeniran, managing director and chief executive of Iwosan Lagoon Hospitals, said power had become one of the largest line items in running a hospital. “Power is one of the biggest issues in running healthcare because it comes at huge cost,” he said, calling for government intervention.
Hospitals cannot substitute away from electricity because life-support equipment, diagnostic machines, laboratories and cold-chain storage require uninterrupted supply. Oyeniran urged the government to consider targeted energy subsidies, direct power relief and other measures to reduce the operating burden on providers.
The pressure is compounded by foreign exchange costs, which have raised the price of imported medical equipment and consumables.
Ngozi Onyia, managing director of Paelon Memorial Hospital, called for an enabling environment for healthcare investment, including favourable policies and tax relief. She noted that the Iwosan group secured its fifth Joint Commission International Gold Seal in 2024 and maintains SafeCare Level 5 standards.
Iwosan Lagoon has opened an outpost clinic at Alaro City in Epe. Managing director Oluwatomi Kogo said the site would become a larger hospital within 12 months, with 10 beds, a full laboratory and a radiology unit.
Why it matters: Energy and forex costs are becoming the binding constraint on Nigerian hospital expansion, and patients absorb the difference in fees.
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