FG Spends N5bn on VP’s Lagos Residence Renovation Amid Economic Challenges

The Federal Government has spent a total of N5.03 billion renovating the vice president’s official residence in Lagos State, sparking public outcry over government spending priorities amid widespread economic hardship and inflation across Nigeria.

The renovation costs were outlined in the N2.17 trillion supplementary budget passed in November 2023, which initially earmarked N3 billion for the Lagos residence and N2.5 billion for the vice president’s official quarters in Abuja. However, data obtained by GovSpend, a civic tech platform monitoring government expenses, revealed that the Lagos project’s cost exceeded the budgeted amount, totaling over N5 billion spent in May and September 2024.

A breakdown of the expenditures showed that N2.83 billion was paid to Denderi Investment Limited on May 31, 2024, for the initial phase of the renovation. On September 5, 2024, two additional payments were made to the same firm: N726.75 million for further work and N1.48 billion for Phase 2 renovations.

The massive expenditure has raised questions and criticism from civil society groups. The Socio-Economic Rights and Accountability Project (SERAP) described the move as a breach of public trust and constitutional obligations, especially given the country’s pressing economic issues. “It will be a grave violation of the public trust and constitutional oath of office for the Senate to approve the plan to spend N15bn on ‘a befitting residence’ for the Vice President at a time when the Federal Government is set to spend 30 per cent (that is, N8.25tn) of the country’s 2024 budget on debt service costs,” SERAP Deputy Director Kolawole Oluwadare said.

Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, also criticized the government’s spending priorities, questioning the administration’s commitment to reducing governance costs. “If they were sincere, they would have made visible efforts to cut allocations in their budgets over the last 16 months,” Rafsanjani argued.

In November 2023, the Federal Capital Territory Administration announced plans to spend N15 billion to construct a new official residence for the vice president in Abuja. This revelation, made by FCT Minister Nyesom Wike during a budget defense session at the House of Representatives, has added to concerns over government spending on luxury projects while many Nigerians struggle economically.

Debo Adeniran, Chairman of the Centre for Anti-Corruption and Open Leadership, stated that government extravagance would persist unless a new constitution is introduced to regulate spending. “Until we have a constitution that addresses profligacy, the country will continue to face wasteful expenditures,” Adeniran emphasized.

The expenditure on the vice president’s residence comes at a time of high inflation, public debt, and widespread economic challenges, fueling demands for more prudent fiscal management and accountability from government officials.