The National Inland Waterways Authority (NIWA) has announced its plan to exit totally from the national budget.
The Managing Director/Chief Executive Officer of NIWA, Dr George Moghalu, dropped the hint on Thursday while defending the Authority’s 2022 budget proposal before the Joint Committee of Senate on Marine Transport and House of Representatives Committee on Ports and Harbours/Inland Waterways.
Moghalu explained that the plan is a move toward attaining financial autonomy, as NIWA had exited the Overhead allocation in 2020.
“We are now poised to opt-out of the Recurrent allocation (comprising both Overhead and Personnel costs) effective from the 2022 Budget, with a view to becoming fully autonomous by 2023,” he said.
Reviewing the 2021 budget of NIWA, Moghalu said that the agency total Appropriation for the Year 2021 was N7, 050, 943,752.00.
While total Personnel Estimates was N737, 139, 170.00, total Overhead Estimates NO.00, Total Recurrent Estimates N737, 139,170.00, Total Capital Estimates N6, 313,804,582.00.
“This implies that the Recurrent Budget constituted 10% and Capital 90 per cent of the Total 2021 Budget Appropriation for implementation. While as at September a review of utilization revealed that about N3, 602, 238,061.97 of Capital Budget representing 51 per cent was released and N1, 104,623,739.08 was utilized. The Recurrent fund released and utilized was to the tune of N730, 286,386.72 which constitutes about 99 per cent of Approved Personnel Budget,” he said.
He further said that “the Authority’s total Approved IGR Budget for Year 2021 N5,403,561,720.83 including: Recurrent Estimates of N2,203,741,994.74, Capital Estimate of N1,578,751,209.84.
“Remittance to Consolidated Revenue Funds (CRF) N1,621,068,516.25, this indicates that the Recurrent Budget constituted 41%, Capital 34 per cent and 25 per cent to CRF of the total 2021 Budget Appropriation for implementation of both new and on-going projects.
“However, a review of the IGR Budget performance as at September 2021 was quite impressive despite the prevailing economic challenges in the fiscal year of 2021 as an offshoot from the unprecedented economic lockdown, occasioned by Covid-19 Pandemic in Year 2020, viz: i. Total Actual Revenue of N2, 290,597,677.08 representing 42 per cent of the Approved Budget in the sum of N5, 403,561,720.83
“Recurrent Expenditure of N1,499,017,750.23 which constituted 68 per cent of the Approved Estimate for the Recurrent Budget in sum of N2,203,741,994.74. Capital Expenditure of N323,046, 401.18 representing 20 per cent of the Approved Estimated amount in the sum of N1, 578,751,209.84. The remittance to Consolidated Revenue Funds (CRF) stood at N578, 935,660.95, which constitutes 25 per cent of the Total Actual Revenue.
“It is noteworthy to reiterate that as a deliberate policy drive towards attaining financial autonomy, the Authority exited the Overhead allocation in 2020 and now poised to opting out of the Recurrent allocation (comprising both Overhead & Personnel costs) effective from the 2022 Budget, with a view to becoming fully autonomous by 2023,” he said.
Explaining what NIWA will be doing in the year 2022, the DG said, “the Authority in its Year 2022 Proposal accorded priority to the completion of all on-going projects especially those that align with the new policy objectives of Government’s Medium Term National Development Plan (MTNDP) 2021-2025 & Nigeria Agenda 2050.
“Thereby improving Private Sector participation and initiating Infrastructural Development within its catchment area. It is in the light of this that a Subvention Capital Budget Proposal from the Federal government in the sum of N12,895,057,455.00 and Total IGR Budget Proposal of N21,250,000,000.00 made up of Recurrent Estimates of N10,871,248,790.16 and Capital Estimates of N5,066,251,209.84 and remittance to Consolidated Revenue Fund of N5,312,500,000.00,” he added.
NIWA urged federal government to encourage MDAS to become autonomous or less dependent on the subvention from the Federal government, as alternative means of diversifying the economy.
Let me state that in line with the present government policy thrust of diversifying the economy towards agriculture and solid mineral development, as an alternative to crude/refined oil products and accelerating infrastructural development in the transport sector thereby, encouraging MDAS to become autonomous or less dependent on the subvention from the Federal government.
“The Authority is determined more than ever to become fully self funding by 2023 predicated upon the passage of the NIWA Bill, in so doing upscaling development of Inland Water Transportation in Nigeria,” he said.
Senators, who reacted to this bold move by NIWA, expressed their reservation, noting that it will be dangerous for the agency to exit completely.
According to Smart Adeyemi, “most of the agencies that have autonomy; that is where you find corruption. NIWA is located in my Senatorial District. There were a lot of complaints against the agency. Agencies are federal government organizations and in all you will do, you must reflect federal character and you must be transparent, even in recruitment.
“I can’t understand where an agency presents a total of zero. I have never seen a budgeting system where you have zero. I think there is what is called Consolidated Account where agencies are supposed to remit proceeds.
“If we continue giving autonomy to agencies, you will discover they will spend everything and give you zero. I want Nigeria to move forward, let us do things the way it should be done. Let there be checks and balances,” he said.
On her part, Senator Biodun Olujimi said, “we are glad you exited 2021 overhead cost. But you are now asking to exit personnel cost, but that is very dangerous for you because there is no way government will add a penny on an MDA that is fully autonomous. We cannot allow you exit everything, you must still be part of the government, because exiting means you are now on your own, and be on your own is very dangerous. There is the need to look deeply into that so that we don’t allow that to happen.”
Senator Isa Jibrin said: “We want to encourage as many government agencies who want to exit, so that at the end of the day, the burden of funding from the government will reduce drastically. It is that burden of funding that has consistently made it difficult for government to exit borrowing. They will still be regulated. There are operational guidelines guiding their activities.”
(Daily Independent)
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