Amaechi Defends 2021 Ministry of Transportation budget

The Minister of Transportation Rt Hon. Rotimi Amaechi, has defended the 2021 Ministry of Transportation budget to the Joint House committee on Transportation. The Minister outlined some of the Projects done so far by the Ministry and also projected the need to secure loans in completing ongoing Projects.

“You know we have three projects, Kano to Marabi, Lagos to Calabar and Port Harcourt to Maiduguri. These are the three projects we are administering loan for now, once we secure loan, we will start construction. I believe that the Kano – Maradi rail will be easier, closely followed by between Port Hacourt to Maiduguri and Lagos to Calabar.

“I usually say that in the past, when the government had money, we needed between 36 and 40 billion dollars to complete all these rail lines and we had the money when we had excess crude but it was not utilized for it, so we are literally handicapped, begging for loan to be able to complete this projects.

“That is why I said be rest assured that as soon as we get the money, we will do it. The Lagos/Ibadan project comprises of Apapa sea port to Ibadan now we are adding Tin-Can to join Apapa so that if we import through TinCan you can go to Apapa and come straight to Ibadan and up to Kano.

“We are willing to go with as many senators and members who are willing to go with us on inspection to Lagos so that they can see where we are, so that they can see whether we can complete it or not before the end of January. Once we finish the Lagos/Ibadan most of the cargoes will be on the train so the gridlock will stop by itself. So those willing should indicate through the Chairmen of committees.

“Once more I express my gratitude for the opportunity to address this joint committee of the senate and house of representatives, what delights me most is that all committees agree to come together. Distinguished senators and honorable members, the expenditure of the Ministry, Nigerian Institute of Transport Technology and Nigerian Railway Corporation are full funded from the national budget. The National Inland Waterways Authority, and the Maritime Academy of Nigeria, they derive their funding from both national budget as well as internally generated revenue.

“For the purpose of emphasis, let me state that the three of the agencies under the Ministry, namely, Nigerian Ports Authority, NIMASA and National Shippers Council are all self-funded. You already know the role of the ministry pertaining to the maritime sector which is mostly oversight, monitoring and implementation of government policies.

“The total capital appropriation for the Ministry in 2020 was 69 billion naira for land transportation, out of which 36 billion naira represent 51.49% has been released till date. Out of this money, land has expended 35.9 billion naira while marine is 89 million naira these are the funds we have utilized before the 2nd of November 2020.

“In addition, the sum of 245 million naira was appropriated for overhead expenditure, out of which N176.9 was released. The sum N157.9 of the released amount was expended as at 28 of October 2020, the ministry is proposing a total of 205.1 billion naira for land transportation and then 845 million naira for maritime.

“The overhead will be 258.7 million naira in the 2021 budget which is before you now for consideration. The aim and objective of this proposal is to make significant progress on all ongoing projects and to complete and deliver modern rail way services that will provide an efficient and cost effective alternative transport system for economic growth and creation of job opportunities for the citizens.

“Distinguished senators and honorable members, under our rail way modernization program the ministry is happy to report that the construction of Lagos/Ibadan standard guage line has reached 92%, in fact we should have completed by now but two factors delayed us. The Covid factor delayed us if not we would have completed by June, and
then EndSARs chased our workers, infact they were calling the Chinese and threatening them not to come out. I however want to report that they are back to site.

“Like you know, funds are borrowed from China, the project contractor CCECC on the instruction of the Ministry, has commenced work and reached advanced stages, therefore in other to forestall the project, we will be needing adequate funds to be provided in 2021 budget to facilitate the completion of the project.

Similarly, for the implementation of the Ibadan/Kano railway which is the outstanding segment of Lagos/Kano railway. One of the conditions is signing of the loan and release of advance payment in the sum of 864 million dollars out of which government has released the sum of 218.7 million dollars as part payment using the balance of 605.3 million dollars.

“To ensure analyzing of the loan agreement, evidence of source of funding of the balance payment and other aspects of work are to be made available to the Chinese Exim Bank through adequate budget provision from year 2021 budget and subsequent yearly provisions.

“The Ministry in its budget proposal has presented an amount for some of the projects by the year 202, while others will reach 2022 appropriation, depending on the leases in 2021 budget.

These include, the completion of Abuja/Kaduna railway line to ensure security and safety operation for the staff and the general public, completion of Itakpe/Ajaokuta which has achieved practical completion by Mr. President on the 29th day of September 2020.

“Provision of electrical power and water construction for the Ibadan/Ajaokuta railway system, these are for efficient and effective services on the road. Payment to consultants for feasibility studies, payment to consultants for the
Kano/Maradi project and the Eastern railway project, as soon as the Warri-Port Harcourt seaport is ready.

“The projects are meant to commence from 2021, and government is expected to pay part funding for the projects including reconstruction
and rehabilitation of the Port Harcourt/Maiduguri railway line.

Construction of the Abuja/Kaduna railway, construction of the Katsina/Kano/Maradi railway to Niger republic, Kano to Dutse.

“Let me use this opportunity to further emphasize to the committees that the Ministry as part of its mandate, will continue to pursue the implementation of government policies in the transport sector of Nigeria. We are focused majorly on completing national offices at Ilela, Jibia and Iloko. In addition to other land protocols, with your support, the capturing of all these projects and programmes are proposed before you in the 2021 budget, we will push further towards setting the goals of the organisation in the development of this
sector.”