Tinubu, who introduced ‘Band A’ tariff, approves N10b to put Aso Rock on solar over high electricity costs
The Nigerian government under President Bola Ahmed Tinubu is set to disconnect the Presidential Villa, Aso Rock, from the national electricity grid due to high cost of electricity as it approved a N10 billion budget to install a solar power system.
According to a report from The PUNCH, this follows an increase in the overall budgetary allocation to the State House Headquarters, which rose from N47.11bn in the initially proposed 2025 budget to N57.11bn in the approved version.
The additional N10bn was traced to a jump in capital expenditure, which moved from N33.55bn to N43.55 billion.
A breakdown of the new capital items reveals that the increase was solely due to the planned solar project, titled “Solarisation of the Villa with Solar Mini Grid,” with a full allocation of N10bn.
The move comes amid growing concerns over unreliable public electricity supply and the high cost of electricity for both households and government institutions.
The solar project is expected to reduce dependence on the national grid and limit the impact of tariff hikes on government finances.
It should be noted that since early 2024, electricity costs have continued to soar, especially for Band A consumers, who receive at least 20 hours of electricity daily.
In April 2024, tariffs for Band A consumers surged from N68/kWh to N225/kWh, representing an increase of over 230 per cent.
Although this was later adjusted to N206.8/kWh and then slightly to N209.5/kWh in July, it remains one of the highest energy cost brackets in the country.
Institutions such as the State House, which fall within Band A, have therefore seen their electricity bills increase dramatically in the past year.
The State House has also struggled with unpaid electricity bills. In February 2024, the Abuja Electricity Distribution Company listed the Presidential Villa among top government debtors, with an outstanding bill of N923.87m.
However, following a reconciliation process, the debt was revised down to N342.35m. President Bola Tinubu subsequently ordered the immediate settlement of the amount to avoid disconnection, according to statements issued by the Presidency.
The incident underlined long-standing issues around power supply reliability and rising utility costs at the nation’s seat of power.
It was learnt that the State House spent a total of N483.34m on electricity bills in 2024, representing a 40.17 per cent increase from the N344.82m it expended in 2023.
This is according to payment records published on the GovSpend platform, which tracks expenditures by Ministries, Departments, and Agencies of the Federal Government.
An analysis of the data showed that while the State House Headquarters made regular monthly payments to the Abuja Electricity Distribution Company, the largest payment of the year was a lump sum of N316.88m made in October 2024.
The Presidency recently settled accumulated electricity arrears in a single October 2024 payment, marking a departure from 2023’s consistent monthly payments.
While 2024 saw lower regular payments, the bulk clearance significantly increased annual expenditure. For 2025, the Federal Government has allocated N311.09 million for State House electricity, suggesting an anticipated return to more stable billing patterns.
This comes alongside plans to transition Aso Rock to solar power as a sustainable, cost-saving measure.
The 2025 budget reveals substantial capital allocations for the State House, including debt settlements for past projects, routine facility maintenance, and infrastructure upgrades.
Notable provisions include funds to address longstanding contractor liabilities, renovate official residences, and complete ongoing construction projects. The budget also covers specialized maintenance of presidential facilities, security quarters improvements, and technological upgrades.
These expenditures reflect a dual focus on clearing historical obligations while modernizing infrastructure, with the solar transition positioned as both an economic and environmental strategy amid rising energy costs.
