The University of Ibadan College Hospital has been disconnected from the national grid over an outstanding N400 million debt.
The Ibadan Electricity Distribution Company (IBEDC) said the disconnection became unavoidable following the failure of UCH to pay the debt.
Speaking with The PUNCH, the spokesperson of IBEDC, Busolami Tunwase, said the university did not fulfil its promise to clear the debt.
While saying the company expressed sympathy for the hospital’s situation, she confirmed that the disconnection was due to UCH’s significant outstanding debt.
Tunwase said the company was compelled to take the action because it was faced with increased pressure to meet its financial obligations.
“IBEDC was compelled to take this course of action as we are faced with increasing pressure to meet our financial obligations to the market.
“However, IBEDC reiterated its commitment to working with UCH and remains open to discussions on a flexible payment arrangement that could be mutually agreed upon by both parties”, she said.
The IBEDC explained that the company is expected to meet 100 per cent of its market obligations, and the outstanding debt from major customers like UCH directly contributes to the liquidity crisis within Nigeria’s power sector.
“IBEDC continues to advocate for timely payments from all customers, stressing that a stable and reliable power supply is dependent on the financial health of the sector. The company called on UCH and all other customers to settle their arrears to help resolve the ongoing challenges facing Nigeria’s electricity distribution system”, she said in a statement on Wednesday.
Asked if the power company is considering reconnecting the tertiary hospital, she said only the management could decide that.
The PUNCH recalls that the IBEDC disconnected the facility on 19 March, the third time in less than two months, over what it called “accumulated bill indebtedness”.
While giving reasons for the disconnection in March, the Ibadan DisCo explained that it disconnected the hospital after failed attempts to engage with the facility’s management regarding the N495million debt, which had persisted for over six years.
Though the hospital earlier denied owing up to that amount, it later agreed and sought time to clear the debt.
It was learned that the hospital has been struggling with its energy cost, especially after the Band A tariff increase.
