The Minister of Transportation, Mu’azu Sambo, has said that adequate budgetary provision was needed to complete ongoing rail projects across the country.
He made this known on Thursday when he appeared before the Joint National Assembly Committee on Land and Marine Transport, chaired by Sen. Danjuma Goje.
The minister who said that adequate funding was required to complete the projects added that the ministry was equally committed to the implementation of the Nigeria Railway Modernisation project.
He said that the railway network was being progressively expanded through yearly budgetary appropriations since the Federal Government was facing challenges in securing counterpart funding through loans.
The minister said: “Currently, the implementation of the Kaduna-Kano, Port Harcourt to Maiduguri and Kano – Maradi Segments of the Railway Modernisation is ongoing with the Federal Government counterpart funding in the 2022 appropriation.
“The Ministry hopes that the Federal Ministry of Finance concludes negotiation of the loans with infrastructure development finance institutions of the Chinese, Portuguese and Turkish origin to implement the projects.
“To ensure finalising and signing of the loan agreements, evidence of source of funding of the balance of the advance payment and other aspects of work to be financed directly by the Federal Government has to be made available to these financial institutions.
“This is through adequate budgetary provisions in the year 2023 Budget and subsequent budgets,” he said.
Sambo also said that the Lagos- Ibadan segment of the Lagos-Kano and Itakpe to Warri railway projects were fully operational and receiving patronage from the general public.
To reach practical completion on the projects, the minister said that some aspects of works, including construction of overpass bridges, connection to the national grid and other ancillary provisions had to be completed.
He said: “Adequate funds need to be provided in the 2023 budget to facilitate the practical completion of the projects.
The minister lamented the sad occurrence on the Abuja-Kaduna Rail incident earlier in the year and said plans were ongoing to resume service.
He said: “With the release of those abducted, the ministry plans to commence operation on the line, but not without taking proper precaution.”
Sambo said that necessary security gadgets would be installed to monitor the line and forestall a reoccurrence.
He expressed the hope that members of the National Assembly would assist the ministry in achieving the plan.
He told the lawmakers that his ministry had proposed a total capital budget of N92, 251,422,746 and overhead of N382, 185, 472
Read Also: NAFDAC Procures 40 Detection Devices To Curb Importation Of Bad Medicine, Says D-G
The minister added that the total capital appropriation of the Ministry for 2022 was N147, 549, 080, 677 out of which N52,134, 727, 253.22 representing 35.33 per cent had been released to date.
He said N38, 904, 208, 345 had been utilised as of Oct. 25 adding that in addition, the sum of N358, 799, 998 was appropriated for Overhead expenditure out of which N209, 299, 998.81 was released.
“The sum of N180, 623, 089.34 of the released amount was expended as at Oct. 25.”
Earlier, Chairman of the Joint Committee, Sen. Goje, expressed concern over the extension of the implementation of the capital component of the yearly budget beyond each fiscal year.
Goje said, “The extension of the implementation of the capital component of the annual budget by three months had defeated the success recorded by the 9th National Assembly to reverse the country’s budget cycle to January from December.
Kindly like us on Facebook/twitter
