PRESIDENT-elect General Muhammadu Buhari is expected to be confronted with presidential villa debts of N8.18bn (£26.5m) when he assumes office on May 29 as state house is heavily indebted to contractors carrying out refurbishments.
At the moment, builders are currently carrying out repairs on the Aso Rock villa and several more items of maintenance will need to be fixed over the coming months. According to a recent report submitted to the Federal Government Transition Committee, headed by Vice President Namadi Sambo, facilities at the villa are said to be ageing and require a further expenditure of N3.64bn.
According to the report expected to be submitted today to the Ahmed Joda-led APC Transition Committee, contractors as well as staff are currently owed money. Liabilities include contracts/service providers (N1,234,913,628.92), staff claims (N1,238,876,080.16), local contracts commitments and liabilities, including Julius Berger Nigeria (N6, 946,699, 131.34).
“The president had on December 3 last year approved the release of N3,394,168,460.95 for the payment of recurrent/overhead debts and capital debts due to other contractors, consultants and service providers. This is yet to be released by the Federal Ministry of Finance," the report said.
It added that on April 15, President Goodluck Jonathan, directed the finance minister Dr Ngozi Okonjo-Iweala, to look into the State House appeal for the release of at least N4bn to part-pay the total outstanding debts of N8,18bn. This was to sustain the existing mutual and cordial relationships with the owed firms but so far, the payment is still being awaited.
According to the report, the N8.1b liabilities are outside the expenses for the renovation of Defence House, Aguda House and other guest houses under the transition programme. It added that the primary challenge facing the State House has been the inadequacy of successive budgetary appropriations as its annual appropriations do not match its actual activities, thereby leading to regular recourse to additional funding from the Intervention Fund from the Federal Ministry of Finance.
