Private health providers in Lagos say electricity and fuel now take 40% of costs, crippling hospitals and threatening patient care

Private health providers in Lagos have sounded the alarm over the surging cost of electricity and fuel, warning that energy now consumes nearly 40% of hospital operational budgets, placing lives and livelihoods at risk.

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In a statement released Monday ahead of the Association of General and Private Medical Practitioners of Nigeria (AGPMPN) Annual General and Scientific Conference, Lagos Chapter Chairman Dr. Jonathan Esegine said hospitals are being crippled by power bills, even as they continue to offer care under extreme economic pressure.

“Our energy cost alone takes about 40 per cent of our health costs, not salaries, not taxes,” Esegine lamented. “I had to run a generator all night to save a pregnant woman, but she couldn’t pay a kobo. Diesel was ₦1,200 per litre.”

Esegine emphasized that private hospitals remain open even during national strikes, attending to emergencies from patients who often arrive with no means to pay.

“We are close to the grassroots. People knock on our doors at midnight with nothing. We attend to them—risking our safety and our finances.”

He stressed that unless electricity subsidies and policy reforms are introduced, the private healthcare system—which serves over 70% of Lagos patients—could collapse.

Dr. Tunji Akintade, Chairman of the Conference’s Local Organizing Committee, echoed the concern, saying power costs are a core threat to healthcare delivery.

“Electricity is one of our biggest problems. If Lagos isn’t strengthened, Nigeria’s health and productivity are at risk.”

Akintade noted that new private hospitals are no longer springing up, as investors are deterred by operational risks and lack of government support.

“Most new facilities are government-funded. We’re trying to catch up with medical tech, but without digital subsidies, it’s near impossible. Government should intervene like they did in telecoms.”

The AGPMPN also criticised Nigeria’s current health insurance framework, calling it unrealistic and unsustainable.

“You can’t give N500 as monthly capitation and expect hospitals to deliver quality care. The private sector is essentially subsidizing Nigeria’s healthcare,” Akintade said.

First Vice Chairman Dr. Emma Onyenuche accused the government of hypocrisy—denying private hospitals access to free medical supplies while politicians jet abroad for basic care.

“We are excluded from free commodities—HIV kits, treated nets, reproductive health tools—then called into ‘consultations’ after policies are made. It’s just playing to the gallery.”

The AGPMPN Lagos Conference, themed “Building Resilient Private Health Systems in Lagos State: A Driver of Public-Private Collaboration, Economic Stability, and Good Governance,” will run from September 10–11 at the Welcome Event Centre, Lagos.

Key topics include:

Electricity and energy survival strategies
Brain drain and doctor migration
Health insurance reform
Public-private partnerships for better care delivery

The event will also feature free glaucoma screenings for attendees.

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“Without a healthy population, there can be no stable economy,” Dr. Esegine said. “We’ve played this role for over 100 years. Now, we need recognition and support.”

Source: Read more at thesun.ng