The Federal Government has outlined its reasons for seeking an additional N6.2 trillion on top of the initially proposed N28.7 trillion for the 2024 budget.
This extra funding is aimed at supporting infrastructural projects and implementing the new minimum wage.
Minister of Budget and National Planning, Senator Atiku Bagudu, provided these details on Monday while appearing before the House of Representatives’ Committee on Appropriation, chaired by Hon. Abubakar Bichi (APC, Kano). Bichi emphasized the importance of informing Nigerians about the specifics of the proposed budget adjustment, which includes N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure related to the new national minimum wage.
Senator Bagudu explained that the additional funds are intended for various significant projects, such as the Lagos-Calabar Coastal Road, the 1,000-kilometre Sokoto-Badagry Road, and the Port Harcourt-Maiduguri rail lines.
The Lagos-Calabar project, which will traverse Lagos and five South East States, has already commenced at both ends. The Sokoto-Badagry Road and associated rail projects, for which the Chinese government is providing 85% of the funding, require the Federal Government to cover the remaining 15%.
The proposed budget also includes funding for the Port Harcourt-Maiduguri rail project, which spans several states including Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, and Katsina. Additionally, there are plans for the Badagry-Tin Can Port, Lekki Port, Lagos-Ibadan Standard Gauge, and Kano-Maradi Standard Gauge rail projects, with N530 billion allocated for these initiatives.
Furthermore, the budget includes N522 billion for water, irrigation, and dam projects. Bagudu noted that these investments are crucial for enhancing agriculture and food security, mitigating flooding, and ensuring water availability. The minister also mentioned a provision of N270 million for expanding compressed natural gas infrastructure.
Bagudu highlighted that the “renewed hope” infrastructural fund aims to provide equity and counterpart contributions for federal projects, ensuring they receive adequate appropriations and do not suffer neglect. He stated that the additional N3 trillion will cover the newly proposed national minimum wage, which President Bola Tinubu plans to present to the National Assembly soon.
In conclusion, Bagudu stressed the necessity of these investments for the nation’s development, emphasizing their importance for infrastructure, agriculture, and overall economic stability.
