Budget defence: Nigerian Navy rejects N25.8bn capital expenditure budget ceiling

Authorities of the Nigerian Navy, on Monday, expressed displeasure over the N25.8 billion budget ceiling approved by the Federal Ministry of Finance, Budget and National Planning for capital expenditure against the sum of N220,236,832,129.64 proposed for the 2022 fiscal year.

Chief of Naval Staff, Rear Admiral Awwal Zubairu Gambo, expressed the concern during the 2021 budget performance and 2022 budget defence held at the instance of the House of Representatives Committee on Navy chaired by Hon. Yusuf Gagdi.

While soliciting for upward review of the budgetary allocation for capital projects, he observed that the Nigerian Navy’s performance is being impeded by obsolete logistics, huge material and personnel costs for maintaining seized and arrested vessels and baggies and shortage of barracks accommodation.

Gambo said: “The Nigerian Navy priority projects as outlined in the strategic plan 2021 to 2030 are fleet renewal, concept and organisation, capital development, fleet support Infrastructure, operations, logistics as well as personnel welfare.

“Thus for the year 2022, the Nigerian Navy initial capital expenditure budgetary estimates amounted to N220,236,832,129.64. N25.8 billion.

“However, the Nigerian Navy was obliged to review the estimate down to the N25.8 billion equivalent to about 11 per cent of the Nigerian Navy’s needs which was given by the Ministry of Finance, Budget and National Planning as the Nigerian Navy’s budget ceiling.

“The Nigerian Navy year 2022 personnel cost amount to N108,165,092,586. This amount is required for the payment of salaries and particularly, the allowances contained in the manual of financial administration for the Armed Forces of Nigeria 2017. Part of the money proposed will also cater for the National Health Insurance Scheme,” he said.

While speaking on the projected internally generated revenue, Gambo disclosed that the Nigerian Navy IGR projection for 2022 amounts to N232,934,11.04.

“The revenue is expected to be sourced from the auction of unserviceable equipment, contractors’ registration and taxes, VAT and stamp duty. The major focus of the 2022 budget remains the ongoing fleet renewal, concept and organization, fleet support infrastructure, operations logistics and capacity upgrade while efforts to improve the welfare of personnel will also be sustained,” he said.

In the bid to address major challenges facing the Institution, he explained that the “immediate challenges to the Nigerian Navy operational efficiency include inadequate platforms, jetties, arms and ammunition and obsolete logistics support facilities. Others are huge material and personnel costs for maintaining seized and arrested vessels and baggies and shortage of barracks accommodation amongst others. Some of the key challenges are briefly highlighted in the brief before you.”

While reviewing the 2021 budget performance, Gambo explained that the capital budget of N25.3 billion appropriated for 2021 has so far been fully released and used for critical projects.

Speaking earlier, Chairman, House Committee on Navy, Hon. Yusuf Gagdi who commended the performance of the Nigerian Navy despite poor budgetary allocation frowned at delay in the execution of projects.

Hon Gagdi said “the Committee observed with pessimistic views, the split over projects (against agreed timelines) by some contractors including some that spanned beyond 3 years period without any signs of completion, hand over to the Navy or concrete work-in-progress.

“Henceforth, the House of Representatives and the National Assembly will not hesitate to call to order any MDA and in this case the Nigerian Navy where it fails to checkmate any erring contractor whose stock in trade is to waste tax payers’ monies by taking for granted the delivery of public goods and services within specified timeframe and quality of the job,” he stated.

(Nigerian Tribune)