University College Hospital (UCH) Ibadan faces disconnection from the national grid due to a N400 million debt. Despite previous promises to clear the arrears, the Ibadan Electricity Distribution Company (IBEDC) disconnected UCH after failed payments. IBEDC emphasizes the need for timely settlements to ensure a stable power supply.
The University College Hospital (UCH) in Ibadan has been disconnected from the national power grid due to an outstanding debt of N400 million. The Ibadan Electricity Distribution Company (IBEDC) stated that despite previous promises from UCH to settle the debt, the hospital failed to fulfill its obligations, prompting the disconnection. IBEDC's spokesperson, Busolami Tunwase, explained that the power company, facing increasing pressure to meet its financial obligations, had no choice but to take this action.
Tunwase expressed sympathy for the hospital's situation but emphasized that the financial pressure faced by IBEDC necessitated the disconnection. She also reiterated the company's willingness to engage with UCH for a flexible payment arrangement. The IBEDC highlighted the growing liquidity crisis in Nigeria’s power sector, caused by outstanding debts from major customers like UCH, and called for timely payments from all customers to ensure a stable electricity supply.
UCH has been struggling with its energy costs, particularly following the Band A tariff increase. Previously, IBEDC had disconnected the hospital in March due to a N495 million debt that had accumulated over six years. Although the hospital initially denied owing that amount, it later acknowledged the debt and sought time to pay it off. The current situation remains unresolved, with IBEDC yet to indicate when the hospital could be reconnected.