Why We Need Additional N6.2trn In 2024 Budget — Minister

The Federal Government has explained its reasons for seeking an additional N6.2 trillion to the N28.7 trillion earlier proposed for the 2024 budget.

According to the government, the additional amount was intended to fund infrastructural projects covering road, rail, water, irrigation and dams, as well as implementation of the new minimum wage.

Minister of Budget and National Planning, Senator Atiku Bagudu explained this on Monday when he appeared before the House of Representatives’ Committee on Appropriation chaired by Hon. Abubakar Bichi (APC, Kano).

Bichi had asked the Minister to give details on the Appropriation bill adjustment of N3.2 trillion capital expenditure and N3 trillion recurrent expenditure for the newly proposed national minimum wage.

The lawmaker insisted that there was 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, the Minister said some of the projects proposed in the budget proposal include the Lagos-Calabar Coastal Road project, 1,000 kilometre road project for which the sum of N150 billion is required, and the Sokoto – Badagry Road projects, including 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.

The Minister said that the Lagos-Calabar road project which is expected to start in three different sections has commenced in Lagos, and the Calabar end, adding that the Lagos-Calabar also covered the five South East States.

He further explained that the additional request as well covered the Port Harcourt – Maiduguri rail lines project.

According to Senator Bagudu, 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 which is the 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.

He said the second project was Badagry – Tin Can Port, Lekki Port while the third one is Lagos – Ibadan Standard Gauge project.

Bagudu added that the fourth project is the 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.

The former Kebbi Governor also disclosed that the sum of 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,” Bagudu said.

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

“These projects, Mr. Chairman, these projects include rail projects and this is to provide counterpart funding for rail projects that have literally stopped in the last years. 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 Kajola. 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 N530 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 traverse 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 endeavour of Asiwaju Bola Tinubu, he has brought it back to life, and this is going to traverse Lagos again, Ogun, Oyo, kwara, 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 recognise 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 N522 billion is provided.

“We have provided more for agriculture, before then, we have provided, as part of the Renew Hope Agenda, N270 million for the expansion of the compressed natural gas infrastructure.

“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,” the minister said.