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The Guild of Medical Directors of Nigeria (GMD) has expressed concern that the increase in electricity tariffs is putting a strain on private hospitals, leading to some of them shutting down.
According to the Guild, at least eight private hospitals in Maiduguri, Borno State capital, have recently closed due to the high cost of electricity and security concerns.
In addition to the rise in electricity tariffs, hospital owners have also pointed out that multiple taxes, emigration of medical professionals, high expenses for importing medical equipment, and increased drug prices are all contributing to the difficulties faced by private hospitals in the country.
These hospitals are responsible for delivering 70 per cent of health-care services to Nigerians.
The healthcare providers have called for immediate government's intervention to prevent more hospitals from closing down, emphasizing that the challenges have made the nation's health sector very unstable.
The medical directors made their concerns known during a press briefing at the end of the guild’s 2024 National Annual General Meeting, themed, ‘From Profession to Industry Practice in a VUCA Environment’, held in Lagos.
Recall that the Nigerian Electricity Regulatory Commission had on April 3 raised electricity tariffs by about 300 per cent.
The Nigeria Labour Congress and the Trade Union Congress, as well as experts had opposed the tariff hike, arguing that it would drive manufacturers out of business, worsen inflation, and stifle small and medium enterprises.
In a statement to the press, Dr. Raymond Kuti, the National President of GMD, urged the Federal Government to urgently step in and provide subsidies for power supply to its members.
He also called for waivers on imported medical equipment before the situation worsens.
Dr. Kuti emphasized the current volatility, uncertainty, and complexity of the health-care business environment, attributing it to restrictive policies, multiple taxations, and rising operational costs.
He expressed concern over the exorbitant expenses incurred by hospitals on power generation, which can amount to as much as N25 million monthly, as well as the impact of the dollarization policy on medical consumables.
He highlighted the difficulty in accessing government-provided funds for private hospitals and lamented the closure of several hospitals in the northern region due to those challenges.
