FG assures of proper utilisation of N6.2trn additional budgetary expenditure

By Tom Okpe

The Federal Government has assured Nigerians of its resolve to prudently utilize the proposed N6.2 trillion additional budgetary expenditure, aimed at stimulating the economy through implementation of various infrastructural projects, including road, rail, water, irrigation and dam projects in the 2024 fiscal year.

Minister of Budget and National Planning, Senator Atiku Bagudu gave the assurance while addressing the House of Representatives’ Committee on Appropriation chaired by Rep Abubakar Bichi at the National Assembly, on Monday.

In his opening address, Rep Bichi tasked the Minister to give details on the Appropriation bill including the N3.2 trillion capital expenditure, increased and N3 trillion recurrent expenditure for the newly proposed national minimum wage, transmitted by Mr President for accelerated consideration.

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He observed that there is need for Nigerians to be adequately informed of the details of the proposed N6.2 trillion budget proposal which is in addition to the N28.7 trillion Appropriation Act, approved for the 2024 fiscal year.

In his response, Bagudu noted that various efforts are being made to address issues bothering on security of lives across the country.

Some of the projects proposed in the budget proposal include: Lagos-Calabar, 1,000 kilometer road project for which the sum of N150 billion is required and Sokoto – Badagry road projects, as well as the rail project for which the Chinese government has provided 85 percent funding while Federal Government is yet to provide the 15 percent counterpart finance.

According to him, the Lagos-Calabar which is expected to start in three different sections, has commenced in Lagos, and the Calabar end, and one additional section Sokoto – Calabar.

He added that the Lagos-Calabar also covered the five South East States as well as Port Harcourt – Maiduguri rail lines.

“The proposed budget was aimed at providing counterpart funding for rail projects that have literally stopped in the last year, including the longest among them – Port Harcourt Main Bridge, which will traverse Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Katsina, Bauchi, Gombe, Yobe, and other parts of the country.

“The second project is equally, Badagry -Tin Can Port, Lekki Portwhile the third one is Lagos – Ibadan Standard Gauge, adding that the fourth one is Kano-Marada Standard Gauge, as well as funding for rolling stock that is required, for which the sum of N530 billion was requested is for these five rail projects.”

Senator Bagudu also disclosed that the sum of N522 billion was also provided for water, irrigation and dam projects.

He explained that the proposed N3.2 trillion renewed hope infrastructure fund was “intended to provide equity contributions or counterpart contributions of the Federal Government projects designated as priority projects as well as critical projects which needed more appropriation so that they will not suffer neglect.”

He disclosed that the N3 trillion was intended to meet, among other things, the newly proposed national minimum wage, for which Mr. President said he will soon send the bill to the National Assembly and subsequent adjustment.

While responding to question on the projected revenue for the year, Senator Bagudu assured that the projects encapsulated in the amendment to the 2024 Appropriation bill will not limit the revenue available for the implementation of the 2024 Appropriation Act.

“These projects, Mr. Chairman, have you said that these projects include rail projects.And this is to provide counterpart funding for rail projects that have literally stopped in the last years. The most, the longest among them is the Port Harcourt-Maiduguri which will traverse Rivers, Imo, Abia, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Kaduna, Bauch, Gombe, Yobe, and then terminating in borno state.

“Equally, the second project is Badagry-Tin Can Port, Lekki Port, Ijebu-ode kajula. The third one is Lagos-Ibadan Standard Gauge. Then the fourth one is Kano-Maradi Standard Gauge.As well as funding for rolling stock that is required. The 530 billion requested is for these five rail projects.

“Equally, we have the National Highway Construction Projects which include additional funding, because this is already in the 2024 budget, for additional appropriation for the Lagos-Calabar Coastal Road, which is to transverse Lagos-Ogun, Ondo, Delta, Bayelsa, Port Harcourt, Akwa Ibom , and Cross River, as well as Sokoto-Badagry, which is in Greenfield.

“Sokoto-Badagry has been on the National Development Plan of Nigeria since 1970. It was actually awarded in 1975, but not much progress was made, but because of the visionary and bold endeavor of Asiwaju Bola Tinubu, he has brought it back to life, and this is going to transverse Lagos again, Ogun, Oyo, kwaraa, Niger, Kebbi and terminating in Sokoto State, as well as the Africa-Sahara Highway to traverse Benue, Kogi, Nasarawa, and Abuja.

“In addition to this, Mr. President and the team recognize that to support our agriculture and food security, we need to take bold measures on our water and irrigation and dam infrastructure.We have met with a number of investors, including the International Finance Corporation, who are saying, if you can put some money to do your dams, we will also put money to provide infrastructure.

In recognition of the fact that every year, when it rains, a lot of Nigeria is flooded, and soon thereafter, we are looking for water. So investment in water, irrigation, and dams has accelerated, because this is such that if we put some money, private capital would also come in to support our dream.So a sum of 522 billion is provided.

“We have provided more for agriculture, and sorry, before then, we have provided, as part of the Renew Hope Agenda, 270 million for the expansion of the compressed natural gas infrastructure.

” The compressed natural gas is not just an alternative to premium motor spirit .It’s a lower-chip, lower source of energy that can help Nigeria maintain energy competitiveness, like countries like Egypt and Pakistan have done. So accelerating this expansion will ensure migration to the cheaper source of wealth, as well as ensuring that Nigeria remains energy competitive.

“Just as an example, the Ministry of Science and Innovation tested two vehicles, from Abuja to Ibadan, one on petroleum motor spirit, which consumed 42,000 Naira worth of oil, and one on CNG, which consumed 14,000 Naira worth of CNG.

“So in order to help Nigerian citizens with this, we need more finance. The other investment in agriculture and food security, as well as the additional water resources, are to support ongoing projects for which the funding commitments are not adequate, and they are critical to the delivery of our agriculture and food security objectives.”

On his part Chairman, House Committee on Media and Public Affairs, Rep Akin Rotimi demanded for list of various achievements of the Tinubu’s administration.

In his ruling, Bichi, who applauded ongoing efforts toward rejuvenating the country’s socio-economic life, assured that necessary legislative measures will be worked out for the overall benefits of Nigerians.