The Ministry of Transportation has proposed the total sum of N205.1 billion as capital budget for 2021.
The transport minister, Rotimi Amaechi, said the budget will enable the ministry to make significant progress on all the ongoing projects.
While making his presentation before the Joint Committee of the Senate and House of Representatives on Land and Marine Transport, he said out of the cash, land transport has N204 billion while marine transport has a total of N845 million with an overhead cost of N358 million.
“The total capital appropriation of the ministry for 2020 is (was) N70,365,081,808. Land has N69,667,177,564, marine N697,904,244 out of which N36,018,702,122 representing 51.49 per cent has been released to date with land having N35,928,905,544.77 and marine with N89,796,577.50 has been utilised as at November 2, 2020.
“In addition, the sum of N245,494,182.42 was appropriated for overhead expenditure out of which N176,926,909.26 was released, the sum of N157,956,153.18 of the released amount was expended as at October 28, 2020.”
“The ministry is proposing a total capital budget of N205,161,882,492 with land transport estimates is N204,316,793,527, Marine transport estimates N845,088,965 with the overhead of N358,799,999 in the 2021 budget which is before you for consideration.
“The aims and objectives of this proposal are to make significant progress on all ongoing projects and to complete and deliver modern railway services that would provide an efficient and cost-effective alternative transport system for economic growth and creation of job opportunities for the citizenry.”
According to him, the Nigerian Institute of Transport Technology (NITT) Zaria and Nigeria Railway Corporation (NRC) are fully funded from the national budget while NIWA, Maritime Academy, and CRFFN derive their funding from both the national budget as well as the Internally Generated Revenues (IGR).
He said three of the agencies under the ministry, namely NPA, NIMASA, and NSC are fully self-funding and make reasonable remittances to the consolidated revenue fund.
He said that the major role of the ministry in the marine transport sector ”is to oversee the monitoring of the implementation of government policies for the sub-sector which are largely carried out by the agencies.”
He also said the budget proposal ”has presented amounts required for completion of some of the projects by the year 2021 while others may span up to 2022.”
He said that the ministry is focused majorly on completing the ongoing National Freight Offices at Illela, Jibiya, and Idiroko in addition to other Land transport projects in 2021.