We will utilise N6.2trn extra-budgetary proposal to boost infrastructure — FG
…As N150bn Lagos-Calabar road project tops extra spending list
…Chinese Govt funds 85% of rail project
…Says CNG usage slashes fuel costs by 66%
The Federal Government has assured Nigerians that the recently proposed N6.2 trillion extra-budgetary provision will be utilised efficiently to transform the country’s infrastructure.
According to the Minister of Budget and National Planning, Atiku Bagudu on Monday, the funds will be channelled into critical projects aimed at enhancing security, transportation, and agriculture, among other sectors.
He gave the assurance on Monday in Abuja while addressing the House of Representatives Committee on Appropriation chaired by Abubakar Bichi, who represents the Bichi Federal Constituency in Kano State.
Recall that President Bola Tinubu transmitted a request for an additional N6.2 trillion in extra-budgetary provisions to both chambers of parliament last week.
This includes N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure, primarily to accommodate the newly proposed national minimum wage for Nigerian workers.
Addressing the public, Bichi emphasised the importance of informing Nigerians about the specifics of the proposed N6.2 trillion budget, which supplements the already approved N28.7 trillion Appropriation Act for the 2024 fiscal year.
Bagudu highlighted that the primary focus of the extra spending is on enhancing the security of lives and property. Key projects outlined include the N150 billion Lagos-Calabar 1,000km road project, the Sokoto-Badagry road projects, and a rail project funded 85 percent by the Chinese Government, with the FG contributing the remaining 15 percent as counterpart funding.
Additionally, Bagudu detailed plans for the Badagry-Tin Can Port and Lekki Port projects, the Lagos-Ibadan standard gauge railway, and the Kano-Maradi standard gauge railway. He also mentioned that N522 billion is allocated for water, irrigation, and dam projects aimed at boosting agricultural activities.
Bagudu further explained that the proposed N3.2 trillion Renewed Hope Infrastructural Fund aims to provide federal government equity contributions to priority and critical projects, ensuring they receive adequate funding and attention.
The Minister noted that the proposed N3.2 trillion Renewed Hope Infrastructural Fund was “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.”
He said, “These projects, Mr. Chairman, include rail, the longest among them being the Port Harcourt-Maiduguri corridor which will traverse Rivers, Imo, Abia, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Kaduna, Bauch, Gombe, Yobe, and terminating in Borno State.
“We have the National Highway Construction Projects which require additional funding because this is already in the 2024 budget.
“The Sokoto-Badagry highway has been on the National Development Plan of Nigeria since 1970. It was awarded in 1975, but not much progress was made because of the visionary and bold endeavour of Asiwaju Bola Tinubu; he has brought it back to life.”
“It is going to traverse Lagos again, Ogun, Oyo, Kwara, Niger, Kebbi and terminating in Sokoto State, as well as the Africa-Sahara Highway which will traverse Benue, Kogi, Nasarawa, and Abuja,” Bagudu added.
The Minister also emphasised the importance of revamping agriculture saying, “We need to take bold measures on our water, irrigation and dam infrastructure. We have met with several investors, including the International Finance Corporation, who are saying, that if we put some money to do your dams, they will provide money to provide infrastructure,” among others.
The Minister also highlighted the importance of Compressed Natural Gas, stating 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, and one on CNG which consumed N14,000.
“So, to help Nigerian citizens with this, we need more finance. The other investments 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. But they are critical to the delivery of our agriculture and food security objectives.”
Bichi, who presided over the session, promised a continuous collaboration of the committee in any effort to revamp the nation’s economy.
