#1.9bn Diesel Budget for State House as Solar Plant Project Stalls

The Federal Government has allocated #1.9bn for diesel at the State House amid delays in the solar power project aimed at reducing energy costs

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The Federal Government has allocated a substantial N1.99bn to procure diesel for the electric power generators at the State House in 2025.

This development comes amid delays in the government’s solar power project, which was initially slated to come on stream between December 2024 and January 2025.

According to reports, the government disbursed N88.75m for diesel within the first half of 2024. This expenditure is part of the government’s efforts to ensure a stable power supply to the State House, despite the delays in the solar power project.

Solar Power Project: Aiming to Reduce Energy Costs

The solar power project, once operational, is expected to significantly reduce the State House’s annual energy bill of N6bn. Senior officials familiar with the project revealed that the 40MW solar power plant could slash the energy bill by at least N5bn.

The project involves the construction of a 1.2MW solar plant at the State House Medical Centre, which began in October 2024. However, as of February 2025, no work has commenced at the State House.

Challenges Facing the Power Sector

Nigeria’s power sector continues to face significant challenges, including gross underinvestment, ageing infrastructure, and sabotage. The Transmission Company of Nigeria attributed the frequent grid collapses to “partial disturbance of the system.”

Despite an installed capacity of about 13,000MW, Nigeria’s power grid transmits only 4000MW, leaving many areas without reliable electricity. The government’s efforts to address these challenges, including the solar power project, aim to provide a stable and sustainable power supply to the State House and the nation at large.

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