The State House has earmarked N10bn in the approved 2025 budget for the installation of a solar mini-grid at the Presidential Villa.
This follows a rise in the total budgetary allocation to the State House Headquarters, which increased from N47.11bn in the initial proposal to N57.11bn in the approved version. The extra N10bn is attributed to a spike in capital expenditure, which grew from N33.55bn to N43.55bn.
Details of the capital allocation show that the entire increment is dedicated to the planned solar mini-grid project, labelled “Solarisation of the Villa with Solar Mini Grid.”
This development comes amid persistent concerns over unreliable electricity supply and the escalating cost of power for households and government facilities. The solar initiative is projected to cut dependence on the national grid and buffer the effect of rising electricity tariffs on government finances.
Electricity charges have sharply increased, especially for Band A consumers who enjoy at least 20 hours of daily supply. In April 2024, the tariff for this category rose steeply from N68/kWh to N225/kWh, marking a hike of over 230 per cent. Although this was later revised to N206.8/kWh and slightly adjusted again to N209.5/kWh by July, the rate remains among the highest in Nigeria.
Facilities like the Presidential Villa, which fall under Band A, have seen substantial rises in electricity expenses over the past year. The State House has also grappled with outstanding electricity bills. In February 2024, the Abuja Electricity Distribution Company identified the Presidential Villa as one of the top government debtors, with an outstanding balance of N923.87m.
Following a reconciliation, the debt was revised to N342.35m. President Bola Tinubu ordered its immediate settlement to prevent a power disconnection, according to the Presidency.
The incident highlighted ongoing challenges related to power supply reliability and the increasing cost of utility services at the nation’s top administrative centre.
Records show the State House spent a total of N483.34m on electricity in 2024, up 40.17 per cent from the N344.82m recorded in 2023. This information is based on payment records available on the GovSpend platform, which monitors financial activities of Federal Government Ministries, Departments, and Agencies.
The data analysis shows that while the State House Headquarters made monthly electricity payments to the Abuja Electricity Distribution Company, its highest transaction was a one-off N316.88m payment in October 2024. The payment was labelled a settlement for “total outstanding electricity debt as at August 2024,” suggesting the accumulation of arrears over several months.
By contrast, electricity payments in 2023 were more consistent, with monthly transactions ranging from N28m to N30m and no lump-sum arrears.
The sharp spike in 2024’s total figure is largely attributed to the single October payment.
For 2025, the Federal Government has allocated N311.09m for State House electricity charges. This figure is contained in the approved budget and falls under the sub-category ‘Electricity Charges’ in the broader ‘Utilities – General’ allocation.
The reduction from the previous year’s actual expenditure suggests either a return to more predictable billing or fewer anticipated arrears. However, questions remain about whether the amount will be adequate based on past spending patterns.
The switch to a solar mini-grid is seen as a move towards more cost-effective and sustainable energy use. It also aligns with the government’s broader environmental goals.
Apart from the solar mini-grid, the capital expenditure in the 2025 budget includes several other major projects.
One of the most prominent is the N11.92bn set aside for settling debts owed to Julius Berger Nigeria and other contractors for services rendered since 2022. These include works done in Kaduna, the VIP wing of the Villa, utilities, and waste management services.
Also, N6.04bn is allocated for routine annual maintenance of mechanical, electrical, building, and environmental systems at key Villa facilities, including the residences and offices of the President and Vice President, as well as lounges, banquet halls, and conference areas.
Another N5.49bn is designated for general maintenance across the Presidential Villa in Abuja.
Construction of a new office building for Special Advisers and Senior Special Assistants will continue, with N1.83bn allocated. Additionally, N534.13m is earmarked for renovating four Army residences located on Ali Akilu Crescent in the Upper and Lower Artillery Quarters.
An additional N120.28m is allocated for refurbishment at the security quarters of the State House.
Other significant capital items include N366.16m for purchasing PMS and ECM equipment, and N38.45m for acquiring and installing auditing software and training staff on its use.
For facility management, N73.35m is provided for services at the Villa’s gymnasium, guest houses, auditorium complexes, and other residences. Another N73.23m is allocated for replacing the Villa’s telecommunications systems.
In terms of digital infrastructure, N50.26m will be spent on maintaining the electronic document management system, while N56.08m is budgeted for purchasing office equipment for departments such as Finance, ICT, Procurement, and Audit.
A further N25.16m is assigned to improve data collection processes for better decision-making in projects and programmes.
Under logistics and mobility, N3.66bn is allocated for purchasing operational vehicles, while N1.09bn will go towards replacing SUVs. Additionally, tyres for bulletproof and other official vehicles will be procured at a cost of N164.99m.
The budget also includes N12.9m for upgrading the State House Library, N4.59m for acquiring digital medical references, and N31.21m for rehabilitating the Villa’s animal enclosure and purchasing veterinary tools.
Another N38.45m is earmarked for plant nursery tools and landscaping projects, while N54.95m is allocated for enhancing the Villa Ranch and constructing a wildlife conservation area.
Despite all these items, the solarisation plan stands out as the costliest new initiative in the 2025 budget, signalling a pivot towards renewable energy in public infrastructure.
President Bola Tinubu signed the N54.99tn 2025 Appropriation Bill into law in a ceremony attended by key National Assembly officials and senior government figures at the State House in Abuja.
The budget was approved by the National Assembly on February 13, after Tinubu requested an upward revision from the initially proposed N49.7tn.
The final budget figure of N54.99tn ($36.6bn) surpasses the earlier proposal of N54.2tn and is based on projected revenues from agencies like the Federal Inland Revenue Service and Nigeria Customs Service.
It focuses on strategic areas such as security, infrastructure, education, and healthcare. It also includes a $200m provision to mitigate the effects of reduced US health aid.
The budget is grounded in ambitious assumptions: 2.06 million barrels of daily crude oil production at $75 per barrel, an exchange rate of N1,500 to the US dollar, and inflation falling from 34.8 per cent to 15 per cent within the year.
This new Appropriation Act reflects a 99.96 per cent increase from the 2024 budget of N27.5tn.
Earlier reports showed that the government had allocated N1.99bn for diesel to power State House generators in 2025. This came as the solar project faced delays and was initially expected to be completed between December 2024 and January 2025.
Government spending records revealed N88.75m disbursed for diesel between March and May 2024. These were spread across four payments, as tracked by the GovSpend platform.
Insiders familiar with the project revealed that persistent grid instability, frequent system collapses, rising diesel prices, and mounting generator maintenance costs had forced the Presidency to seek alternative power sources.
Officials, who requested anonymity, said the 40MW solar facility could cut the Villa’s N6bn yearly power bill by up to N5bn.
The project was scheduled to be completed by December 2024 for the State House Medical Centre and by January 2025 for the main complex, including Dodan Barracks in Lagos.
While work began on the 1.2MW solar plant at the medical centre in October 2024, checks revealed that no construction had commenced at the main Villa site as of February 2025.
An official involved in the project stated that spending billions on erratic grid power and diesel-fuelled generators was no longer viable.
Done. Mentions of The PUNCH have been removed from the document. Let me know if you’d like any other edits.
