- The presidency budgets a N10 billion allocation for the installation of a solar mini-grid at the Presidential Villa to cut electricity costs
- The total allocation to the State House Headquarters rose from N47.11bn to N57.11bn due to the solar project
- Nigerians criticise the government, citing hypocrisy and misplaced priorities amid national power challenges
In a bid to cut costs and reduce reliance on the unreliable national grid, the Presidency has budgeted a massive N10 billion for the installation of a solar mini-grid at the Presidential Villa, Abuja.
The allocation is part of a revised 2025 State House budget, which rose from an initially proposed N47.11 billion to N57.11 billion in the final approval.
The entire N10 billion increase is earmarked for a single project titled “Solarisation of the Villa with Solar Mini Grid.”
The move comes amid increasing power costs and public outcry over the burden of electricity tariffs.
Band A consumers, promised at least 20 hours of power daily, have faced steep tariff hikes in the past year, with prices skyrocketing from N68/kWh in April 2024 to N225/kWh, before being adjusted to N206.8/kWh and later N209.5/kWh.
Government institutions like the State House fall within this Band and have been hit hard by the new rates.
Power bills soar, debts pile up
In 2024, the State House spent a total of N483.34 million on electricity, up by over 40% from N344.82 million in 2023.
Despite regular monthly payments, the biggest payment was a lump sum of N316.88 million in October 2024, which covered accumulated bills up to August of that year.
This suggests a growing challenge in meeting monthly obligations under the new tariff regime.
Earlier in February 2024, the Abuja Electricity Distribution Company listed the State House among the top defaulters, claiming an outstanding debt of N923.87 million.
Following a reconciliation process, the debt was revised to N342.35 million, and President Bola Tinubu ordered an immediate settlement to avoid disconnection.
For 2025, N311.09 million has been budgeted for electricity expenses under the "Electricity Charges" line item.
While this is less than what was spent in 2024, it’s unclear whether the amount will be sufficient given recent trends.
Solar as a lifeline
The N10 billion solar mini-grid project is seen as a strategic response to the challenges posed by erratic supply and spiralling energy costs.
State House insiders suggest that once operational, the solar grid could reduce the Villa’s annual N6 billion energy bill by up to N5 billion.
Construction of a 1.2MW solar plant began at the State House Medical Centre in October 2024.
However, as of February 2025, work had yet to commence at the main Villa complex.
The complete project, targeted to serve the Medical Centre, Presidential Villa, and Dodan Barracks in Lago, was originally expected to be operational by January 2025.
The Federal Government had earlier allocated N1.99 billion for diesel procurement in 2025, highlighting the high cost of running diesel-powered generators.
Data from the civic tech platform GovSpend revealed that between March and May 2024 alone, the State House spent N88.75 million on diesel.
More capital projects in the mix
Beyond the solar project, several big-ticket items dominate the State House's 2025 capital budget:
- N11.92bn for liabilities owed to Julius Berger Nigeria and other contractors since 2022.
- N6.04bn for routine maintenance of the Villa’s mechanical, electrical, and environmental systems.
- N5.49bn for general maintenance of Villa facilities.
- N1.83bn for the acquisition and renovation of EFCC-forfeited properties to serve as official residences.
- N1.83bn for continuing construction of an office complex for Special Advisers and Senior Special Assistants.
- N534.13m for renovation of Army residences along Ali Akilu Crescent.
- N120.28m for upgrades to the State House security quarters.
- N366.16m for PMS and ECM equipment.
- N38.45m for auditing software and staff training.
- N73.23m for telecommunications system upgrades.
- N56.08m for office equipment across State House departments.
- N164.99m for tyres for bulletproof and operational vehicles.
- N54.95m to upgrade the Villa Ranch and create a wildlife conservation enclosure.
Reactions as Presidency budgets N10bn for solar power
The solar allocation has sparked reactions online.
Some Nigerians see the shift to renewable energy as hypocritical, considering the government’s failure to improve the national grid or reduce tariffs for the general population.
@UsGarba wrote: “Cutting cost of governance. But that amount is outrageous.”
@AdeElKayode questioned: “I thought I read somewhere that the government banned importation of solar panels?”
@AbiolaAdebisi7 criticised the move: “You promised the masses constant electricity but approved solar for the Villa. What’s the hope for a common man?”
Others like @AdetunjiAdewolu sarcastically added: “Hope it powers transparency too.”
@debayoorr pointed out: “If the Villa can’t afford electricity, what happens to regular homes, hospitals, schools?”
@_xploreet wrote: “Nigerians should get ready to pack their bags and move into Aso villa with the president. After all we all people's children wey like better thing.”
@Ukie_95 said: “They want you to believe even the president is facing the hardship and inflation. Propangada On steroid.”
@Akos_solutuion: “This has to be a joke 🤣”
@kufre91: “I assure you, 90% of that sum would be stolen and shared.”
Nigeria loses $26bn yearly to electricity shortages –Report
Meanwhile, TheRadar reported that Nigeria suffers an estimated annual economic loss of $26 billion due to electricity shortages, according to a report, Africa Trade Barometer, by the Standard Bank.
According to the report, businesses shore up electricity shortages by spending nearly $22 billion annually on off-grid fuel, which leads to increased operational costs.