The Minister of Transportation,
Rotimi Chibuike Amaechi, has proposed N205 billion as capital budget for 2021.
He said this during his presentation before the Joint Committee of the Senate and House of Representatives on Land and Marine Transport in Abuja on Friday.
He said the proposed fund was to enable the ministry make significant progress on all its ongoing projects.
Amaechi explained further that out of the N205 billion, land transport had about N204 million, marine transport had N845 million with an overhead cost of about N358 million for the year 2021.
According to him; “the total capital appropriation of the ministry for 2020 is N70 billion, land has N69.6 billion, marine N698 million.
“Out of this sum, N36 billion representing 51.49 per cent has been released to date with land having about N35 billion and marine with N90 billion has been utilised as at November 2, 2020.
“In addition, the sum of N245 million was appropriated for overhead expenditure, out of which N177 million was released, the sum of N158 million of the released amount was expended as at October 28, 2020.
“The ministry is proposing a total capital budget of N205 billion with land transport estimates of N204 billion, marine transport estimates N845 million and overhead of N359 million in the 2021 budget, which is before you for consideration.
“The aims and objectives of these proposals are to make significant progress on all ongoing projects.
“And to complete and deliver modern railway services that will provide an efficient and cost effective alternative transport system for economic growth and job creation opportunities for the citizenry”.
The Minister, however, pointed out that the Nigerian Institute of Transport Technology (NITT) Zaria and Nigeria Railway Corporation (NRC) both have a significant share from the national budget.
Amaechi also maintained that National Inland Water way Authority (NIWA), Maritime Academy of Nigeria (MAN), Oron and Council for the Regulation of Freight Forwarding (CRFFN) derived their funding from both the national budget and the Internally Generated Revenues (IGR).
He buttressed that three of the agencies under the ministry, Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigeria Shippers’ Council (NSC) were well self-funding and remitted reasonably to the consolidated revenue fund.
Amaechi posited during session that the major role of the ministry in the marine transport sector was to oversee the monitoring of the implementation of government policies for the sub sectors, which were largely carried out by the agencies.
He added that the budget proposal had presented amounts required for completion of some of the projects by 2021, stating that others maybe extended up to 2022.
Amaechi also stressed that the Ministry of Transportation is geared towards completing the ongoing National Freight Offices at Illela, Jibiya and Idiroko and other land transport projects in 2021 as well.
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