Rising electricity tariffs and soaring operational expenses are stretching health facilities to their limits, threatening to derail critical expansion efforts across Nigeria, Olubisi Oyeniran, managing director and CEO of Iwosan Lagoon Hospitals, has said.

While public-private partnerships continue to advance infrastructure, he warned that high utility expenses could compromise sustainability as the hospital kicked off medical operations at an outpost clinic in Alaro City.

Uninterrupted power is indispensable for life-support machinery, diagnostic technology, and cold-chain storage, yet securing it has become one of the largest financial burdens on hospital balances.

To safeguard health outcomes and protect investments, the managing director called on the government to intervene through targeted energy subsidies, direct power relief, and broader policy support.

Compounded by heavy foreign exchange pressures on imported medical equipment, the current cost structure threatens to drive up the price of care for everyday patients.

“Generally, we need an enabling environment for investments to thrive. For instance, power is one of the biggest issues in running healthcare because it comes at a huge cost. Medical equipment is imported with forex pressure, and this comes at a huge cost. The government can help,” Oyeniran said.

Iwosan Lagoon Hospitals officially kicked off its first healthcare operation in Alaro City, a master-planned residential and light industrial settlement on the outskirts of Epe.

The globally accredited health provider serves the Alaro community through a new outpost clinic where general outpatient and emergency care are being provided.

The managing director explained that the partnership with Alaro City is geared towards planning essential infrastructure ahead of the future health demands of the 2,000-hectare city.

“This clinic will function as one of our outposts and one of the doors into the Lagoon healthcare system and the Iwosan Healthcare, which is also made up of Paelon Memorial Hospital, Euracare, and Iwosan Wellness,” Oyeniran said.

“If there is any reason to provide further care, we then get you into the bigger group from this outpost. As the city and healthcare demand grow, our vision is to build secondary and tertiary healthcare facilities here in Alaro City. We are working with the development plan of the city.”

Iwosan Lagoon Hospitals, one of Nigeria’s largest private tertiary healthcare providers, secured its 5th Gold Seal of approval from the Joint Commission International (JCI) in 2024, recognising its commitment to high-quality, safe patient care.

Ngozi Onyia, managing director of Paelon Memorial Hospital, performed the ribbon cutting and noted that the launch of Iwosan Lagoon’s Alaro City facility is a strategic effort to integrate essential healthcare directly into new urban developments.

She stated that Iwosan Lagoon brings a track record of top-tier quality standards to the development, highlighted by its historical distinction as the first hospital in Nigeria to achieve Joint Commission International (JCI) accreditation, alongside industry benchmarks like SafeCare Level 5 standards and collaborative partnerships with institutions like Mayo Clinic in the U.S.

To sustain and expand such high-standard operations, Onyia emphasised the need for continued enabling environments from the Lagos State Government, alongside favourable policies, targeted tax relief, and dedicated funding to support healthcare as a viable business.

While operations are beginning with a local clinic, the project is designed to scale into a major hospital providing end-to-end medical care for residents, according to Oluwatomi Kogo, managing director, Iwosan Lagoon Outpatient Clinic and Iwosan Wellness Centre.

“Within the next 12 months, we intend to develop into a larger hospital. This means we will have at least 10 beds to admit, a full laboratory and a radiology unit,” she said.

“We are going to offer 24-hour emergency care, general outpatient services, comprehensive annual health check, and family medicine. Specialists will come from time to time to see people with underlying conditions such as hypertension and diabetes. People who require more specialised care will then be transferred.”

In line with their vision for a fully integrated community, Oluwaseyi Ashade, head of corporate affairs for Alaro City, highlighted that the master plan relies on building infrastructure ahead of market demand rather than waiting for population growth to trigger development.

She noted that an eight-lane main boulevard was completed before residents began moving into the area, assuring that the Iwosan Lagoon clinic will ensure immediate access for incoming families rather than delaying services until the city matures.

“For a city that is growing, healthcare is important. If we are building a community where families can go to work, go to school, you need a partner like the Iwosan Lagoon Hospitals that understands that shared vision where you are building infrastructure ahead of demand,” Ashade said.