FG slashes navy’s N220.236bn capital budget to N25.8 billion

The Nigerian Navy on Monday said it proposed N220.236 billion for capital projects in the 2022 budget but was slashed to N25.8 billion by the ministry of budget and national planning.

Awwal Gambo, chief of naval staff, said this when he appeared before the House of Representatives Committee on Navy for the appraisal of the 2021 budget performance and 2022 fiscal proposals.

Gambo lamented there were a plethora of challenges impeding the operational efficiency of the navy, including inadequate platforms, jetties, arms and ammunition, obsolete logistics support facilities, shortage of barracks accommodation, among others that require huge funding.

“For the year 2022, the Nigerian Navy initial capital expenditure budgetary estimates amounted to N220,236,832,129.64. However, the Nigerian Navy was obliged to review the estimate down to N25.8 billion equivalent to about 11 percent 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.

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“The Nigerian Navy’s 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.”

The naval chief Naval said the navy was projecting to raise the internally generated revenue (IGR) of N232.9 million in the 2022 financial year from 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 organisation, fleet support Infrastructure, operations logistics, and capacity upgrade, while efforts to improve the welfare of personnel will also be sustained,” he said.

Yusuf Gagdi, chairman of the Reps’ Committee, expressed worry over the attitude of some contractors handling projects that have spanned beyond three years without any sign of completion.

“Henceforth, the House of Representatives and the National Assembly will not hesitate to call to order any ministry, department or agency, and in this case the Nigerian Navy where it fails to checkmate any airing contractor whose stock in trade is to waste taxpayers monies by taking for granted the delivery of public goods and services within specified timeframe and quality of jobs,” he warned.