In a bid to curb an estimated $2 billion yearly loss to medical tourism, the Federal Government plans to electrify about 35,000 health facilities across the country, leveraging renewable energy.
The project, which falls under a new market-driven reform framework spearheaded by the Nigeria Power for Health Initiative (NPHI), is expected to help the government achieve 30 per cent renewable energy penetration in healthcare facilities by 2027.
Minister of State for Health and Social Welfare, Dr. Iziaq Adekunle Salako, disclosed this while delivering the keynote address at the National Healthcare Electrification Investor Matchmaking Forum held at the Civic Centre, Lagos.
The forum was convened under the NPHI, a national platform approved by President Bola Tinubu to coordinate investments and reforms aimed at addressing persistent energy challenges in the health sector.
Salako said the initiative marks a transition from policy dialogue to investment implementation, noting that Nigeria is moving “from dialogue to concrete plans, from policy discussions to investment decisions.”
He explained that the programme emerged from a national stakeholder dialogue that identified energy poverty as a major constraint to healthcare reform and service delivery.
According to him, the outcome of the engagement led to the establishment of the NPHI as a structured national mechanism for driving healthcare electrification.
The minister stressed that electricity is a fundamental requirement for modern healthcare delivery, describing it as a “compulsory driver” of the health system.
He said reliable power is essential for operating theatres, vaccine cold-chain systems, incubators, diagnostic services, blood banks, oxygen delivery systems, digital health platforms and emergency response services.
Salako warned that persistent power outages in health facilities continue to hamper healthcare delivery, particularly amid grid instability, voltage fluctuations and rising diesel costs.
He noted that energy expenses now account for a significant share of hospital operating costs, thereby reducing resources available for medicines, infrastructure and workforce development.
According to him, the NPHI was designed to break the cycle of poorly sustained infrastructure interventions that have historically depended on government and donor-funded asset delivery.
He said such approaches often resulted in installations without adequate maintenance plans, leading to rapid system failure and recurring financial losses.
Under the new model, Nigeria is transitioning to an Energy-as-a-Service framework, under which private Energy Service Providers will finance, install, operate and maintain energy systems, while hospitals focus on healthcare delivery.
Salako said the model would ensure improved efficiency, predictable service delivery, investor returns and reduced fiscal pressure on government. He added that although the current phase focuses on federal tertiary institutions, the long-term objective is to extend electrification to primary, secondary and private health facilities nationwide.
According to him, the initiative will be scaled through collaboration with state and local governments to create a unified national energy solution for the health sector.
The minister outlined a governance structure comprising an Inter-Ministerial Steering Committee, a 24-member Inter-Agency Technical Committee, Facility Energy Management Teams and a dedicated project secretariat under the Federal Ministry of Health and Social Welfare.
He said the framework was designed to strengthen transparency, accountability and investor confidence.
Salako also explained that financing would be driven through blended mechanisms combining public funding, private capital, development finance and climate finance, supported by risk-sharing arrangements.
He acknowledged support from development partners, including the United Kingdom Partnership for Accelerating Climate Transition (UK PACT) and Landell Mills International.
In his remarks, Minister of Power, Joseph Tegbe, said the initiative aligns with the Federal Government’s ongoing power sector reforms and the Renewed Hope Agenda.
He noted that healthcare electrification represents one of Africa’s largest investment opportunities, considering the more than 35,000 health facilities across Nigeria.
Tegbe identified key investment areas as solar mini-grids, hybrid systems, battery storage, smart metering, energy-efficiency solutions, and operations and maintenance services.
He said the initiative would move Nigeria away from unsustainable grant-dependent models towards structured financing that combines public, private and development capital.
According to the minister, improved electrification would enhance maternal healthcare, reduce mortality rates, strengthen vaccine storage systems, improve emergency response and boost patient confidence in the health system.
He added that reliable electricity is critical to reversing medical tourism trends, which currently cost Nigeria an estimated $2 billion annually.
