N6.2 Trillion Supplementary-Budget Allocated For Minimum Wage And Infrastructure, Says FG

N6.2 Trillion Supplementary-Budget Allocated For Minimum Wage And Infrastructure, Says FG

The Federal Government said on Monday that the N3 trillion recurrent component of the N6. 2 trillion supplementary budget before the National Assembly will largely be used to address the new national minimum wage.

Minister of Budget and National Planning, Senator Atiku Bagudu disclosed this while addressing the House of Representatives’ Committee on Appropriation chaired by Hon. Abubakar Bichi.

The Minister however assured of government resolve to be prudent in the utilisation of the funds contained in the budget which he said is aimed at stimulating the economy through the implementation of various infrastructural projects.

He said the N3.2 trillion capital component of the supplementary budget is meant as addition funding for priority projects in road, rail, water, irrigation and dam projects in the 2024 fiscal year.

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

Bichi observed that there is 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.

The Minister said efforts were being made to address issues borderinga on security of lives across the country.

According to him, some of the projects expected to benefit from the budget include the Lagos-Calabar, 1,000 kilometer road project for which the sum of N150 billion is required; the Sokoto – Badagry road projects, as well as rail project for which the Chinese government has provided 85 percent funding, while the Federal Government is yet to provide the 15 percent counterpart fund.

Bagudu said the Lagos-Calabar coastal road which is expected to start in three different sections, adding that work has already commenced in Lagos, and the Calabar end.

He said further that the proposed budget was aimed at providing counterpart funding for rail projects that have literally been stopped in the last year, including the longest among them – Port Harcourt Main guage which will traverse Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Katsina, Bauchi, Gombe and To be states

The other rail projects he said are Equally, the Badagry -Tin Can Port- Lekki Port as well as Lagos – Ibadan Standard Gauge, the Kano-Marada Standard Gauge, as well as funding for rolling stock that is required.

Senator Bagudu also disclosed that the sum of N522 billion was also provided in the supplementary budget for water, irrigation and dams

According to him, the proposed N3.2 trillion renewed hope infrastructural fund is “intended to provide equity contributions or counterpart contributions of the Federal Government to projects designated as priority projects as well as critical projects which needed more appropriation so that they will not suffer neglect.”

N3 trillion he said is intended to meet among others, the newly proposed national minimum wage, for which Mr. President said he will soon send a bill to the National Assembly.

He said “we have the National Highway Construction Projects which needed additional funding, because this is already in the 2024 budget. What we did was make additional appropriation for the Lagos-Calabar Coastal Road, which is to tranverse 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 endeavor of Asiwaju Bola Tinubu,  he has brought it back to life, and this is going to tranverse Lagos again, Ogun, Oyo, kwaraa, 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 recognize that to support our agriculture and food security, we need to take bold measures on our water, 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 522 billion is provided.

“We have provided more for agriculture, and sorry, before then, we have provided, as part of the Renew Hope Agenda, 270 million for the expansion of the compressed natural gas infrastructure.

“The compressed natural gas is not just an alternative to premium motor spirit .It’s a lower-chip, lower source of energy that can help Nigeria maintain energy competitiveness, like countries like Egypt and Pakistan have done. So accelerating this expansion will ensure migration to the cheaper source of wealth, as well as ensuring that Nigeria remains energy competitive.

“Just as an example, the Ministry of Science and Innovation tested two vehicles, from Abuja to Ibadan, one on premium motor spirit, which consumed 42,000 Naira worth of oil, and one on CNG, which consumed 14,000 Naira worth of CNG.

“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”.

Speakiny on the projected revenue for the year, Senator Bagudu assured that the projects encapsulated in the amendment to the 2024 Appropriation bill will not limit the revenue available for the implementation of the 2024 Appropriation Act.

On his part Chairman, House Committee on Media and Public Affairs, Hon. Akin Rotimi demanded for list of various achievements of the Tinubu’s administration.

Other lawmakers who applauded the ingenuity of the present administration towards addressing the infrastructural deficit, harped on the need to address issues of security.

While ruling, Hon. Bichi who applauded ongoing efforts toward rejuvenating the country’s socio-economic life, assure that necessary legislative measures will be worked out for the overall benefits of Nigerians.