University of Ibadan College Hospital Disconnected from National Grid Over N400m Debt

The University of Ibadan College Hospital (UCH) has been disconnected from the national grid due to an outstanding debt of N400 million. The Ibadan Electricity Distribution Company (IBEDC) confirmed that the disconnection was a result of UCH's failure to meet its financial obligations despite earlier agreements to clear the arrears.

In a statement to The PUNCH, IBEDC's spokesperson, Busolami Tunwase, expressed the company’s sympathy for the hospital’s predicament but stressed that the disconnection had become unavoidable. She explained that the hospital had not adhered to its commitment to settle the debt, forcing IBEDC to take action.

“The increasing pressure on IBEDC to fulfill its financial obligations to the national grid left us with no choice but to disconnect UCH,” Tunwase said. “While we understand the challenges facing the hospital, we are compelled to act in line with our responsibilities.”

The IBEDC further highlighted the broader implications of unpaid debts within Nigeria’s power sector, with the outstanding arrears from major customers like UCH exacerbating the financial strain on electricity distribution. The company reiterated its call for timely payments from all customers, emphasizing that the financial health of the sector is critical for ensuring a stable and reliable power supply.

Despite the disconnection, IBEDC has expressed its willingness to negotiate a flexible payment arrangement with UCH to resolve the outstanding debt. Tunwase confirmed that the door remains open for further discussions between the two parties.

This is not the first time UCH has faced disconnection. On March 19, IBEDC had disconnected the facility over a staggering N495 million debt, which had accumulated over six years. Although the hospital initially denied owing that much, it later admitted to the debt and requested more time to make payments.

UCH has been struggling with rising energy costs, particularly following an increase in the Band A tariff. The hospital’s management has yet to comment on the latest disconnection.

As the situation unfolds, the power sector's liquidity crisis remains a pressing issue, with stakeholders calling for more timely payments to ensure the stability of Nigeria’s electricity distribution system.