The federal government has defended its request for an additional N6.2 trillion to the 2024 N28.7 trillion budget, stating that the extra funds are essential for infrastructure projects and the implementation of the new minimum wage. These projects include roads, railways, water systems, irrigation, and dams.
Minister of Budget and National Planning, Atiku Bagudu, explained the need for these funds during a meeting with the House of Representatives Committee on Appropriation. The committee is chaired by Hon. Abubakar Bichi (APC, Kano). During this meeting, Hon. Bichi asked the minister to provide detailed information about the adjustment in the Appropriation bill. The adjustment consists of N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure, specifically for the new national minimum wage.
Hon. Bichi emphasized that Nigerians deserve to know the specifics of the additional N6.2 trillion budget proposal, which is on top of the already approved N28.7 trillion Appropriation Act for the 2024 fiscal year. In response, Minister Bagudu outlined several major projects included in the budget proposal.
One of the highlighted projects is the Lagos-Calabar 1,000-kilometer road project, which requires N150 billion. This project will be executed in three sections, with work already started in Lagos, the Calabar end, and an additional section covering Sokoto to Calabar. The road project will benefit the five South East states and includes the Port Harcourt-Maiduguri rail lines.
Minister Bagudu also mentioned the significant rail project, which has received 85% of its funding from the Chinese government. The federal government still needs to provide the remaining 15% of the counterpart finance. This rail project includes the Port Harcourt Main Bridge, expected to span multiple states including Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Katsina, Bauchi, Gombe, and Yobe.
Other crucial rail projects mentioned by the minister include the Badagry-Tin Can Port, Lekki Port, Lagos-Ibadan Standard Gauge, and Kano-Marada Standard Gauge. For these rail projects, the minister has requested an additional N530 billion to fund rolling stock.
Furthermore, Minister Bagudu disclosed that N522 billion has been allocated for water, irrigation, and dam projects. These projects are crucial for improving water supply and agricultural productivity in various regions.
“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,” said Minister Bagudu.
He further explained that the N3 trillion in the proposed budget is meant to address the newly proposed national minimum wage. The President has indicated that a bill regarding the national minimum wage will soon be sent to the National Assembly.
Minister Bagudu emphasized the importance of these infrastructure projects for the overall development of the country. He pointed out that improving road networks, railway systems, and water infrastructure will significantly boost economic activities, reduce transportation costs, and improve the living standards of Nigerians.
In addition to the major road and rail projects, the minister highlighted the need for funding to support water and irrigation projects. These projects are vital for enhancing agricultural productivity and ensuring food security. The dams will also provide necessary water supply for domestic and industrial use in various regions.
The minister assured the committee that the government is committed to ensuring that these projects are completed on time and within budget. He stressed the need for the additional funds to prevent delays and ensure the successful implementation of these critical infrastructure projects.
Hon. Bichi and other committee members expressed their appreciation for the detailed explanation provided by Minister Bagudu. They acknowledged the importance of these projects for national development and the need for adequate funding to ensure their successful completion.
The committee assured the minister of their support in reviewing the budget proposal and making necessary adjustments to ensure that the required funds are allocated for these important projects. They also emphasized the need for transparency and accountability in the utilization of the funds to ensure that the projects are completed to the highest standards.
In conclusion, the federal government’s request for an additional N6.2 trillion to the 2024 budget is aimed at funding critical infrastructure projects and implementing the new minimum wage. These projects include significant road and rail developments, water and irrigation systems, and dam projects, all of which are essential for the country’s economic growth and development. The government has assured that the funds will be used effectively to complete these projects on time and within budget, ultimately improving the living standards of Nigerians.
