Tinubu Abandons Nigeria’s Electricity Challenges, Approves N10bn Solar Power For Aso Rock
The Federal Government has allocated N10bn in the 2025 budget for the installation of a solar mini-grid at the Presidential Villa in Abuja as part of efforts to address rising electricity bills and unstable power supply.
The provision, listed as “Solarisation of the Villa with Solar Mini Grid,” is the largest single capital item in the State House’s revised 2025 budget, which rose from N47.11bn to N57.11bn after approval.
The additional N10bn was solely tied to this solar project, reflecting a push to reduce reliance on the national grid and curb the impact of increasing electricity tariffs on government finances.
This move comes against the backdrop of escalating energy costs, particularly for Band A customers who receive up to 20 hours of electricity daily.
In 2024, tariffs for Band A jumped from N68/kWh to N225/kWh before being slightly reduced to N209.5/kWh by July.
The State House, which falls under this high-consumption band, saw its power expenses rise significantly.
In 2024, it spent N483.34m on electricity, a 40 per cent increase from the N344.82m spent in 2023, according to figures from the GovSpend platform.
Despite monthly payments to the Abuja Electricity Distribution Company, the State House still accumulated arrears.
In October 2024, it paid N316.88m in a single transaction to clear outstanding bills up to August.
Earlier in the year, the AEDC listed the Villa among top government debtors with N923.87m in unpaid bills, later reduced to N342.35m after reconciliation.
For 2025, the budget earmarks N311.09m for electricity charges, suggesting an expectation of reduced energy costs following the solar transition.
Beyond electricity, other major allocations in the State House’s 2025 capital budget include N11.92bn for outstanding payments to Julius Berger and other contractors.
N6.04bn is set aside for routine maintenance of the President and Vice President’s residences and offices.
N5.49bn has been allocated for general facility repairs.
Also included are N3.66bn for new operational vehicles and N1.09bn for SUV replacements.
N164.99m is earmarked for bulletproof vehicle tyres.
Further allocations cover property renovation, security upgrades, office equipment, landscaping, and digital tools.
The solar project, initially scheduled for completion between December 2024 and January 2025, has faced delays.
While a 1.2MW solar plant began construction at the State House Medical Centre in October 2024, no work had started at the main Villa by February 2025.
An official involved in the project said continued dependence on costly diesel generators was unsustainable.
In 2024, the FG spent N88.75m on diesel in just five months.
Overall, the Villa’s annual energy bill has been estimated at N6bn, with the 40MW solar project projected to save up to N5bn annually.
The 2025 national budget, signed by President Bola Tinubu, totals N54.99tn—an increase from the proposed N54.2tn.
It is based on a projected oil output of 2.06 million barrels per day, a benchmark price of $75 per barrel, and an exchange rate of N1,500/$1.
The budget also aims to reduce inflation from 34.8 per cent to 15 per cent within the year.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
