Why We Need Additional N6.2trn In 2024 Budget – FG

The federal government has justified its request for an additional N6.2 trillion to the 2024 N28.7 trillion budget, saying it was intended to fund infrastructure projects like roads, rail, water, irrigation and dams, and to implement the new minimum wage.

Minister of Budget and National Planning Atiku Bagudu gave this explanation when he appeared before the House of Representatives Committee on Appropriation, chaired by Hon. Abubakar Bichi (APC, Kano).
Hon. Bichi had asked the minister to provide details on the Appropriation bill adjustment of N3.2 trillion in capital expenditure and N3 trillion in recurrent expenditure for the newly proposed national minimum wage.

The lawmaker insisted that Nigerians needed to know the details of the proposed N6.2 trillion budget, which is in addition to the N28.7 trillion Appropriation Act approved for the 2024 fiscal year.

In his response, the minister said some of the projects proposed in the budget proposal include the Lagos-Calabar 1,000-kilometre road project, for which the sum of N150 billion is required, and the Sokoto—Badagry road projects. He also mentioned the rail project, for which the Chinese government has provided 85 per cent funding while the federal government is yet to provide the 15 per cent counterpart finance.He said the Lagos-Calabar road project, expected to start in three sections, had commenced in Lagos, the Calabar end, and one additional section, Sokoto-Calabar. He added that the Lagos-Calabar covered the five South East states and the Port Harcourt-Maiduguri rail lines.

According to him, the proposed budget was aimed at providing counterpart funding for rail projects that had 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.

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He said the second project was Badagry -Tin Can Port, Lekki Port; the third is Lagos—Ibadan Standard Gauge, while the fourth is Kano-Marada Standard Gauge. He also requested funding for rolling stock, for which he requested N530 billion, for these five rail projects.

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

“The proposed N3.2 trillion Renewed Hope infrastructural fund is 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.”

The minister disclosed that the N3 trillion was intended to meet, among other things, the newly proposed national minimum wage, for which Mr President said he would soon send the bill to the National Assembly.