Minister Alkali Defends N46.6 Billion Budget For Nigeria’s Transport Overhaul, Focusing On Railway Expansion And National Connectivity
Nigeria – The Minister of Transportation, Sen. Said Ahmed Alkali, on Thursday, 14th December 2023, defended a total budget of Forty-Six Billion, Five Hundred and Eighty-Nine Million, Seven Hundred and Eighty-Five Thousand, Nine Hundred and Seventy-Five (N46,589,785,975) Naira only, to the Joint Committee of the Senate and the House of Representatives on Land Transport for the Ministry and its agencies for the 2024 fiscal year.
Alkali, speaking at the National Assembly during the budget defence, also presented the 2023 Budget Performance of the Ministry, which was N91,474,422,746 for Capital Appropriation. Out of this, N53,405,649,354.00, representing 58.38%, has been released, and N47,426,760,923 has been utilised as of 29th November 2023.
Additionally, the Minister stated that N382,185,472 was appropriated for overhead expenditure, out of which N254,799,314.70 was released. He added that N248,711,874.15 of the released amount had been expended as of 12th December 2023.
Alkali informed the legislators that under the Railway Modernisation Programme, the last administration vigorously pursued the expansion of railway networks in the country. “To consolidate on the achievements recorded, President Bola Ahmed Tinubu’s led Administration created the Ministry of Transportation, focusing solely on land transportation, comprising road transport and rail transportation, to close the infrastructural gap in the country and support national economic growth, create employment, generate wealth and improve the standard of living of citizens.”
The Minister revealed plans to scale up the transportation and logistics value chain, commensurate with Nigeria’s population and size, ensuring the connection of important industrial and agricultural hubs with railway networks.
Alkali expressed strong hope and willingness to enhance the transportation system in the country by addressing the critical needs of the country’s rail infrastructure and propelling it towards a more efficient, valuable, and sustainable transport system. This would ensure the realisation of vital rail modernisation in the country. He lamented that funding is one of the critical challenges in the sector.
“I and my team have resolved to work hard at ensuring the realisation of Nigeria’s Integrated Infrastructure Master Plan. However, meeting the set target is significantly challenged by a funding gap, especially against the backdrop of dwindling revenue accruing to the country. In the Railway Transport Sub-sector, an investment portfolio of close to US$35 Billion is estimated as the funding requirements to meet the realisation of an adequate and functioning railway transportation system,” the Minister disclosed.
Speaking further, Sen. Said Alkali said, “Currently, the Ministry plans to connect close to 6,000 Kilometres of Standard Gauge Railways and rehabilitate existing 3,505km Narrow Gauge Lines between the North, South, East, and West Regions of the country to reach the oil and mineral resource zones, the agricultural belt, as well as ports of origin and destination, especially the Lekki Deep Sea Port. This can only be achieved effectively through investments and injecting institutional and private sector funds from international development financing entities that will seize the opportunity to partner with Nigeria. However, obtaining these funds from international financing institutions has been challenging over the past few years. For example, the ongoing Lagos – Kano and Kano – Maradi Railway Modernisation Project and the rehabilitation and reconstruction of the Port Harcourt – Maiduguri Eastern Narrow gauge have been slowed by funding. “The Ministry also has some debt liability of unpaid Certificates for Job Completion under the Lagos – Ibadan Railway Project,” Alkali added.
While soliciting favourable budget consideration, the Minister said, “I therefore seek your cooperation to ensure the injection of special intervention funding for the expansion of the railway networks, which is a catalyst to economic development. In pursuit of the rehabilitation and modernisation programme, the Nigerian Institute of Transport Technology (NITT), Zaria is focusing on improving its basic infrastructure, increasing its research base and expanding its training drive. To this end, the Institute is planning to acquire state-of-the-art equipment and complete the ongoing outreach learning centres in four geopolitical zones of the country.”
Alkali seized the opportunity to further emphasise that the Ministry, as part of its mandate, has continued to pursue the implementation of government policies in the Land Transport Sub-sector in the country, including issues relating to the Economic Community of West African States (ECOWAS) for the realisation of transport interconnectivity in the sub-region.
Earlier, the Chairman, Joint Senate/House Committees on Land Transport, Sen. Mohammed Adamu Aliero, in his opening remarks, welcomed all to the gathering and commended President Ahmed Bola Tinubu for creating the Ministry of Land Transport, comprising Railway and Mass Transit. He noted that this was the first time such a development had occurred in the history of the country.
According to him, “Our nation’s progress is intricately tied to the efficiency and development of our transportation infrastructure, making this budget defence a pivotal moment for shaping the trajectory of our country’s future.”
Sen. Adamu Aliero, while giving assurances that the Committees will support the Minister and the agencies to succeed, enjoined them to ensure that the budget approved for the Ministry is implemented faithfully, to deliver the government’s intentions of actualising the President’s “Renewed Hope Agenda.” This renewed hope must be felt in the area of land transport, with a particular focus on our rail transport sector and mass transit, thereby delivering democracy dividends to Nigerians.
