Naija Wahala
FG assures prudent use of N6.2tn extra-budgetary spending.
The Federal Government has promised that it will spend the N6.2 trillion to be included as 2024 extra-budgetary allocation in developing Nigeria’s infrastructure.
This pledge was made on Monday by Atiku Bagudu, Nigeria’s Minister of Budget and National Planning while he was addressing House of Representatives Committee on Appropriation chaired by Abubakar Bichi, member representing Bichi Federal Constituency from Kano State in Abuja.
Last week, President Bola Tinubu had sent a request for an additional provision of N6.2tn supplementary budget to both chambers — N3.2tn for capital expenditure and N3tn for recurrent expenditure meant for payment of the newly recommended minimum wage for Nigerian workers.
Bichi in his opening remarks said Nigerians need to know what is contained in the proposed N6.2tn budget which is over and above the 2024 fiscal year’s N28.7tn Appropriation Act already approved by the parliament.
Briefing newsmen on what is expected from the new tranche of extra funds, Bagudu said that there will be more focus on ensuring safety and security amongst citizens.
Chinese government funded 85% of that while.
The budget included several projects one of which includes the Lagos-Calabar 1,000km road project which will cost N150 billion. Another project listed is the Sokoto-Badagry road projects and a railway project for which 85% of the funding had been provided by Chinese government while FG was expected to provide counterpart funding up to 15%.
As regards to post-COVID-19 stimulus package, he said “we have looked at our priorities in terms of transportation, health and education. And we agreed these areas are critical in provision of services.”
The second extra-budgetary funded project is Badagry-Tin Can Port and Lekki Port while the third one is Lagos-Ibadan standard gauge; and fourthly Kano-Maradi standard gauge.
According to him, there would also be another meeting on Thursday where ministers will defend their respective proposals before President Muhammadu Buhari.
He explained that “the proposed N3.2 trillion Renewed Hope Infrastructural Fund is intended to provide equity 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.”
“These infrastructural development plans include a rail from Port Harcourt through Imo Abia Enugu Ebonyi Anambra Benue Nasarawa Plateau Kaduna Bauch Gombe Yobe down to Maiduguri,” he said.
“We have National Highway Construction Projects that require additional finance funds.”
The National Highway Construction Projects require additional funding as it is already in the 2024 budget.
It has been on Nigeria’s national development plan since the 1970s. It was awarded in 1975, but not much was achieved because of the visionary and boldness of Asiwaju Bola Tinubu; he has revived it.”
“It will also traverse Lagos, Ogun, Oyo, Kwara, Niger, Kebbi and terminate at Sokoto State just as Africa-Sahara Highway which will traverse Benue, Kogi, Nasarawa and Abuja,” Bagudu said.
The minister also stressed on revamping agriculture saying that “We need to take radical decisions on our water/irrigation/dam infrastructure. We have held talks with several investors including International Finance Corporation who are saying that if you put some money to do your dams they will provide money for infrastructure,” inter alia,
The Minister also underlined the significance of Compressed Natural Gas by saying that the Ministry of Science and Innovation “tested two vehicles from Abuja to Ibadan: one on Petroleum Motor Spirit which consumed N42,000 worth of oil while one on CNG which consumed N14,000 worth of petroleum product”.
‘Therefore to assist the Nigerian citizens in this, we need more finance.’
The other in agriculture and food security as well as the additional water sources are in fulfillment of outlay funding commitment gaps for the current projects that are very essential in realisation of our agriculture and food security objectives.
The chair of the session was Bichi, who stated that the committee would maintain its support for any processes that could change the economy of the nation.
