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N6.2trn Supplementary Budget For Rail, Road Projects, New Minimum Wage, Others

New Minimum Wage N3trn, Water, Dams N522bn

The Minister of Budget and National Planning, Atiku Bagudu on Monday disclosed that the proposed N6.2trn supplementary budget is to be used for the provision of counterpart funding for rail projects that have been on hold in the last year.

He said these include the longest among them, Port Harcourt-Maiduguri 1067mm gauge line, which will traverse Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Katsina, Bauchi, Gombe, Yobe, and other parts of the country.

Bagudu, who made the disclosure while addressing the House of Representatives’ Committee on Appropriation chaired by Abubakar Bichi said the second project is the Badagry -Tin Can Port, Lekki Port lines while the third one is Lagos – Ibadan Standard Gauge.

According to him, the road projects covered in the budget include: Lagos-Calabar, 1,000 kilometre road project for which the sum of N150 billion is required and Sokoto-Badagry Road projects, as well as the rail project for which the Chinese government has provided 85 per cent funding while the Federal Government is yet to provide the 15 per cent counterpart funding.

According to him, the Lagos-Calabar, which is expected to start in three different sections, has commenced in Lagos, and Calabar end, and one additional section Sokoto-Calabar.

Bagudu also disclosed that the sum of N522 billion was also provided for water, irrigation and dam projects.

He explained that the proposed N3.2 trillion Renewed Hope Infrastructure Fund was “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.”

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

He explained that “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 most, 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 the Badagry-Tin Can Port, Lekki Port, Ijebu-Ode-Kajula. 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.

“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 endeavor 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.

“We have provided more for agriculture, and sorry, before then, we have provided, as part of the Renew Hope Agenda, N270 million for the expansion of the Compressed Natural Gas infrastructure”, he stated.

In his opening address, the committee chairman, Bichi asked the minister to give details on the Appropriation bill including the N3.2 trillion capital expenditure increase and N3 trillion recurrent expenditure for the newly proposed national minimum wage transmitted by Mr. President for accelerated consideration.

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.

He added that the Lagos-Calabar also covered the five South East States as well as Port Harcourt – Maiduguri rail lines.

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