The House of Representatives has decried the progressive decline in the annual budgetary allocations to the Nigerian Navy (NN).
The lawmakers lamented that the reduction of Navy’s allocations for three consecutive years has affected its operational capabilities thus resulting in an estimated loss of N3 trillion annually.
To address this shortfall, the Abdussamad Dasuki-led Committee on Navy said the House would push for a Maritime Trust Fund as well as an increase in Navy’s budgetary allocations.
Dasuki, in his opening remarks during NN’s 2016 budget defense and 2017 budget presentation at the weekend, said: “This Committee will be alert to ensure that allocation for the maintenance and fuelling of Nigerian Navy platforms is adequate. In this regard, the Navy must be commended for its strides to remedy the situation through several initiatives but the potential loss of revenue to the nation from its inability to carry out its duties is enormous and has been estimated to be over N3trillion ($10b) annually.
“There is therefore the urgent need to ensure that budgetary allocations to the Navy is realistic and allows it function effectively. It is in our national interest to do so.”
In his presentation, the Chief of the Naval Staff (CNS), Vice Admiral Ibokekwe Ibas said though Navy’s allocation for 2016 was reduced from initial N56.46b to N49.66b, it was still able to record major strides.
“The scope of the NN’s efforts with an overhead budget fund release of N2.5b can be glimpsed from the value of the confiscated crude oil and illegally refined diesel which amounts to a total of about N420.13b.
“This is aside from the value of the ships, boats, tankers, vehicles and other associated items arrested. The implication of this is that with improved overhead funding, the Service would be able to enhance its operational profile to the advancement of economic activities, safety of lives and property and enhancement of national security,” Ibas said.
For its 2017 budget estimates, the CNS said proactive resolution of maritime security challenges was the determination factor in Navy’s proposal for the year with identified five priority areas of fleet renewal, operational infrastructure upgrade, operational logistics procurement, capacity development and personnel welfare.
He said NN’s initial capital expenditure amounted to N317.63b but was reviewed to N26.4b as the budget ceiling that was sent to the Budget Office, while N4.9b was proposed for overhead cost.