…defends N225b budget proposal
The Minister of Transportation, Said Alkali has said the ministry requires increased funding of the rail sector to achieve an efficient rail transportation network across the country.
The minister, while noting that the ministry is working hard and is desirous of realioing Nigeria’s Integrated Infrastructure Master Plan, added that execution of projects was stalled due to paucity of funds.
According to the minister, the ministry is limited to the yearly budgetary appropriation following the challenges faced in securing counterpart funding through loans.
He spoke on Thursday before the National Assembly Joint Committee on Land Transport during the budget defence session of the 2025 appropriation bill and the presentation of the 2024 budget performance of the ministry and its agencies.
The 2025 budget proposal of the ministry and its agencies is; N225,744,028,687 billion.
The ministry is proposing N1,940,798,202 billion for overhead and N223,803,230,485 billion as capital.
On the need for increased funding, the minister said: “The ministry and its agencies resolved to work hard at ensuring the realization of Nigeria’s integrated infrastructure master plan which accommodates the rail modernization projects and road transport/mass transit projects.
“However, the ability to meet the target is significantly challenged by the funding gap, especially against the background of dwindling revenue accruing to the country. In the railway transport sub-sector, an increase in funding is needed to meet the realization of an adequate and functioning railway transportation system.
“The ministry, through concerted intervention, is implementing the Nigerian Railway Modernization project and progressively expanding the railway network through yearly budgetary appropriation following the challenges being faced in securing counterpart funding through loans.
“To sustain the progressive output under the 2024 Appropriation Act in this financial year, a need for increased funding arises to improve the existing infrastructure in all the agencies under the ministry”.
The minister appealed to members of the committee and the entire National Assembly to support the ministry for effective funding of the ongoing projects and the commencement of new ones to move Nigeria to the next level.
He added that their support was critical to realising efficient transportation, which is globally recognized as the enabler of economic growth and gateway to the nation’s economy.
He also clarified the position of the ministry on the construction of a superhighway from Lagos to Abuja.
“For the Lagos-Abuja super highway construction, Geofocus is a company that approached the ministry for a PPP for a super highway from Lagos-Abuja along with other companies that have made submissions from South-South to Abuja and Southeast to Abuja but the project is not to be funded through appropriation.
“You have to prepare an Outline Business Case (OBC) and submit it to the ICRC; after fulfilling the prerequisite, you will now proceed to the Full Business Case. They have submitted the OBC, and it is with the ICRC, so for them to go to the press to say they want to construct a super highway from Lagos to Abuja is far from the truth”.
The Chairman of the Senate Committee on Land Transport, Sen. Adamu Aliero supported the need for more funding to expand the rail network.
Sen. Aliero said: “We commend the government for what it is doing about railway modernization, we are so impressed. The only problem we have is the funding gap, and I sincerely hope that the president will make all the necessary moves to ensure that we provide the required funding to ensure the modernization of the Nigerian railway.
“We don’t have a choice but to develop the railway sector; otherwise, no matter the amount we spend on our roads, because of heavy traffic and vehicles, the lifespan will not be more than five years. So, the only reliable means of transportation is the railway. It is cheaper and more affordable”.
