The 2025 approved budget reveals a significant allocation of N10 billion for the installation of a solar mini-grid at the Presidential Villa, a move aimed at addressing the persistent challenges of unreliable power supply and escalating electricity costs. This allocation represents a substantial increase in the State House Headquarters’ budget, which rose from N47.11 billion to N57.11 billion, with the entire N10 billion increase attributed to the solar project. This decision comes amidst escalating electricity tariffs, particularly for Band A consumers like the State House, who are guaranteed a minimum of 20 hours of daily electricity but face significantly higher charges. The solar initiative is anticipated to reduce the Villa’s reliance on the national grid, thereby mitigating the financial impact of these tariff hikes and promoting energy efficiency.
The Presidential Villa’s struggle with electricity costs is well documented. In 2024, the State House’s electricity expenditure reached N483.34 million, a 40.17% increase from the N344.82 million spent in 2023. This surge is largely attributed to a lump-sum payment of N316.88 million made in October 2024 to settle outstanding electricity debts accumulated through August of that year. This contrasts with the more consistent monthly payments observed in 2023, suggesting a pattern of accruing and subsequently clearing arrears. While the 2025 budget allocates N311.09 million for the State House’s electricity charges, the adequacy of this amount remains uncertain given past spending patterns.
Beyond the solar mini-grid, the 2025 budget outlines several other capital projects for the State House. A substantial N11.92 billion is earmarked for settling outstanding liabilities to contractors, including Julius Berger Nigeria, for various projects and maintenance work. Routine maintenance of mechanical, electrical, building, and environmental systems within Villa facilities is allocated N6.04 billion, while general maintenance at the Presidential Villa will consume N5.49 billion. Notably, N1.83 billion is budgeted for the acquisition and renovation of forfeited properties, intended for use as official residences.
Further capital expenditures include N1.83 billion for the ongoing construction of a new office complex for Special Advisers and Senior Special Assistants, and N534.13 million for renovating Army residences. Renovations at the State House security quarters are allocated N120.28 million. Other allocations target essential operational needs, such as N366.16 million for PMS and ECM equipment, N38.45 million for auditing software and training, and funds for facility management, telecommunications infrastructure replacement, and digital infrastructure maintenance. A smaller allocation of N25.16 million is designated for data collection to enhance decision-making related to projects and programmes.
The budget also addresses transportation and logistical requirements. The procurement of new operational vehicles for the State House receives a significant N3.66 billion allocation, with an additional N1.09 billion designated for replacing SUVs. A further N164.99 million is allocated for tyres for bulletproof and other operational vehicles. Smaller allocations are spread across diverse needs, from library upgrades and digital medical references to the rehabilitation of the Villa’s animal enclosure and improvements to the Villa Ranch and wildlife conservation facilities. The diverse range of projects highlights the multifaceted operational requirements of the Presidential Villa.
The approved N54.99 trillion (equivalent to $36.6 billion USD) 2025 budget, signed into law by President Bola Tinubu, represents a significant increase from the initially proposed N49.7 trillion and the 2024 budget of N27.5 trillion. This substantial increase reflects anticipated revenue growth from agencies like the Federal Inland Revenue Service and the Nigeria Customs Service. The budget prioritizes key sectors, including security, infrastructure, education, and health, with a specific allocation of $200 million to mitigate the impact of reduced US health aid. The budget’s underlying economic assumptions include a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel, an exchange rate of N1,500 to the US dollar, and an ambitious inflation reduction target from 34.8% to 15%.
Despite the planned transition to solar power, the 2025 budget also includes N1.99 billion for diesel to power generators at the State House. This allocation arises from delays in the solar power project, initially expected to be operational between December 2024 and January 2025. The government disbursed N88.75 million for diesel in the first half of 2024 alone, highlighting the ongoing reliance on generators due to the instability of the national grid. Senior officials have indicated that the 40MW solar power plant, once operational, could significantly reduce the State House’s annual energy bill of N6 billion by approximately N5 billion. While construction of a 1.2MW solar plant commenced at the State House Medical Centre in October 2024, work at the main State House complex had not begun as of February 2025, underscoring the challenges in implementing the solar project and the continued need for diesel-powered generators in the interim.
