Interview: Integrating Energy and Healthcare Through Public-Private Partnerships

Broadcast on PPP Pathways, Super FM 92.7, Lagos, on Saturday, March 7, 2026

PPP Pathways: Today’s conversation focuses on a critical issue that affects everyone: energy and healthcare and how integrating both through public-private partnerships can power communities and strengthen hospitals. Reliable electricity in healthcare is not about comfort. It can mean the difference between life and death. Joining us is Mide Alabi, a lawyer, writer, policy analyst, co-founder of Trellis Africa, and partner at Enebeli & Partners Legal Mide, many people hear the term "public-private partnership," or "PPP," but may not fully understand it. What exactly is a PPP, particularly in relation to energy and healthcare infrastructure?

Mide Alabi: In the simplest terms, a public-private partnership is an arrangement where a private institution finances, builds, and operates a public asset on behalf of the government and is paid performance-based fees. Instead of the government fully funding and managing a project from its budget, it partners with a private entity that brings capital and operational expertise. The private partner delivers the infrastructure under clearly defined contractual terms, while the government retains oversight.

PPP Pathways: Why is it important to think about energy and healthcare together rather than as separate sectors?

Mide Alabi: Healthcare today is inseparable from energy. Almost everything in modern medicine is powered by technology, and that technology requires electricity. This issue is also personal for me because I have family members in the medical profession. I have an uncle who has performed surgeries using a flashlight in his mouth due to power outages. While there has been progress over the years, unreliable electricity remains a serious challenge. You need energy to power MRI machines, run diagnostics, refrigerate medication, and maintain operating theaters. Without reliable electricity, quality healthcare delivery becomes compromised.

PPP Pathways: How does unreliable electricity affect hospitals and healthcare delivery in real terms?

Mide Alabi: Most Nigerians have, at some point, relied on a government hospital. In emergencies, you are taken to the nearest facility regardless of your income level. If that hospital lacks power, the consequences are immediate. Beyond diagnostic equipment, many medications require controlled storage conditions. Insulin, for example, must be refrigerated. When there is no power, those medications become ineffective. Diesel generators are expensive to run, and fuel costs are volatile. In surgical situations, even a brief interruption in electricity can be catastrophic. Power outages in hospitals are not inconveniences. They are life-threatening risks.

PPP Pathways: Can improved energy access directly lead to better health outcomes?

Mide Alabi: Absolutely. Imagine a healthcare system where doctors are properly supported and do not have to improvise with flashlights or lanterns. Imagine walking into a hospital confident that equipment will function without interruption. I once spent seven hours at a government hospital waiting for electricity to be restored before a basic procedure could be carried out. Reliable power shortens waiting times, improves diagnostics, enhances surgical precision, preserves medication integrity, and ultimately saves lives. The inverse of instability is efficiency, and efficiency in healthcare translates directly to better outcomes.

PPP Pathways: What types of energy solutions are most suitable for hospitals and primary healthcare centers?

Mide Alabi: The least sustainable solution is reliance on diesel or petrol generators. They are expensive, environmentally damaging, and increasingly inconsistent with global financing standards that emphasize climate considerations. For larger hospitals, I recommend a three-tier system: connection to the national grid, a robust solar installation for daytime generation, and inverter-backed battery storage with automatic switching mechanisms. That redundancy ensures continuity when one source fails. In rural areas that may not be connected to the grid, a hybrid system centered on solar, potentially supplemented by wind or small-scale hydro where viable, combined with battery storage, would be more appropriate. The objective is to ensure that quality healthcare is not limited to urban centers or affluent communities.

PPP Pathways: Government funding constraints are often cited as a major obstacle. How can PPP models help provide better power solutions for hospitals without placing the full burden on government?

Mide Alabi: There are three primary ways. First, financing. Governments are stretched across multiple sectors and frequently operate under budget deficits. Private capital eases that pressure. Second, risk allocation. Infrastructure projects carry operational, financial, and force majeure risks. Under a properly structured PPP, those risks are distributed to the parties best positioned to manage them. Third, administrative efficiency. Private organizations typically operate within clearer hierarchies and decision-making structures. That clarity improves accountability, speeds up implementation, and reduces bureaucratic delays.

PPP Pathways: What motivates private investors to participate in health and energy infrastructure projects?

Mide Alabi: Predictable revenue is fundamental. In a PPP structure, payments are typically backed by government obligations, which reduces uncertainty. There is also institutional stability. Governments change, but state obligations remain enforceable. In addition, ESG considerations play an increasing role. Investors are under pressure to demonstrate environmental, social, and governance responsibility. Investing in sustainable healthcare and energy infrastructure strengthens their ESG profile and enhances their attractiveness to global capital. Finally, properly structured government contracts provide enforceability and clarity, which reduces transactional risk.

PPP Pathways: What should government and private partners watch out for when designing these projects?

Mide Alabi: Contracts must be carefully drafted and scrutinized. Both sides must ensure that risk allocation is fair and responsibilities are clearly defined. Legal teams on both ends must guard against imbalanced provisions that disproportionately favor one party. Risk management frameworks should be explicit. Additionally, political interference must be minimized. PPP projects should not become vehicles for personal enrichment or undue influence. Transparency and governance are essential to long-term viability.

PPP Pathways: Beyond hospitals, how can integrated energy-health projects benefit entire communities?

Mide Alabi: Hospitals are entry points, but the impact extends further. Reliable healthcare increases life expectancy and reduces preventable deaths. It reduces the financial burden on families who would otherwise turn to expensive private facilities. PPP projects also create employment across the value chain, from energy technicians and engineers to legal advisers and compliance professionals. Improved infrastructure stimulates local economic activity and builds community resilience.

PPP Pathways: Finally, what message would you leave with stakeholders listening, including government leaders, investors, healthcare professionals, and citizens?

Mide Alabi: First, prioritize your health. Preventive care matters. Beyond that, governments should be more open to privately initiated PPP proposals. There should be clear institutional pathways for private entities to submit structured proposals addressing identified infrastructure gaps. Investors should build strong government relations and approach these projects with long-term commitment. Communities should use their voices to advocate for sustainable healthcare infrastructure. PPPs are not abstract policy tools. When properly designed, they create mutually beneficial outcomes for government, investors, and citizens alike.