The Nigerian Navy has remitted the sum of N884.379 million revenue generated from sources such as Pay As You Earn, Stamp duty, Value Added Tax (VAT) Withholding Tax, rent of quarters, auction of scraps and unserviceable equipment as well as contractors registration fee to the Federal Government as at October 2020.
The Chief of Naval Staff, Ibok-Ete Ibas who disclosed this when he appeared before the House of Representatives Committee on Navy for the defense of the 2021 budget also called for more funding to enable it to discharge its constitutional mandate.
Ibas said the Nigerian Navy in the last two decades has been mainly preoccupied with policing roles in the face of the multidimensional maritime threats especially from crude oil theft, illegal bunkering, pipeline vandalism and piracy as well as internal security breaches; and asymmetric threats in the form of counter-insurgency and counter-terrorism, among others.
He said to effectively tackle these threats in the nation’s interest, the Navy needs to budget for the acquisition of appropriate platforms, equipment, and infrastructure without ignoring personal welfare.
“Though the Federal Government of Nigeria has in recent time boosted the renewal of Nigerian Navy’s fleet with some major platforms, additional operating vessels are required to enhance the Navy’s presence at sea in defence of Nigeria’s maritime interest and sustain ongoing efforts against crude oil theft and other maritime related crimes”, the Naval Chief said.
On the performance of the 2020 budget, Ibas stated that: “Capital budget of N16,312,021,715 was appropriated to cover eight projects while the sum of N12,370,134,448, that is about 75.46 per cent of appropriation, has so far been released.
“The released fund is being devoted to the implementation of capital projects such as the milestone obligation for the ongoing construction of our landing ship tank and patrol craft. Others are the acquisition of a new hydro graphics survey ship and maritime patrol helicopter as well as the ongoing construction of the Naval War College.
“For the 2020 Overhead Cost implementation, N11,240,714,956 was appropriated out of which the sum of N8,322,718,746, representing 74 percent, has been released. The released funds have been used to make the running cost of ships, units, commands, and establishments as well as requirements for first-line maintenance, amongst other sundry routine expenditures.
“For the 2020 Personnel Cost implementation, the sum of N103,261,852,982 was appropriated to the Navy for Personnel Cost. The sum of N84,088,344,499 has so far been released and duly utilised for the full payment of salaries and non-regular allowances to personnel from January to October”.
The Naval Chief said for 2021, the Nigerian Navy’s priority projects for the 2021 capital proposal are fleet renewal, operations logistics, fleet support infrastructure, capacity development, and personnel welfare.
He stated that: “The Nigerian Navy’s initial capital expenditure budget estimates for 2021 was N182.612bn, equivalent to $464,663,475. However, the Nigerian Navy had to review the estimates down to N20,315,649,968, which is equivalent to about $51m, which was the budget ceiling given by the Ministry of Finance, Budget, and National Planning.
“For the 2021 Overhead Cost, the initial Overhead proposed by the Navy was N38,362,386,414. This projection could, however, not be submitted as the Navy was pegged at N11,240,714,955, a budget ceiling given by the Ministry of Finance, Budget, and National Planning. It is worth mentioning that the Overhead budget provision is inadequate in the face of rising costs and the Nigerian Navy’s increasing operational deployments”.
“For 2021 Personnel Cost proposal, Nigerian Navy Personnel Cost proposal amounts to N103,502,975,227. This amount is required for the payment of personnel salaries and allowances as contained in the manual of financial administration for the Armed Forces of Nigeria”.
Responding, Chairman of the House Committee on Navy, Yussuf Gagdi, commended the Nigerian Navy for its professionalism and high standards, adding that the Committee had embarked on oversight of all Naval formations under Western and Eastern Commands.
“Distinguished colleagues, even if we sound immodest, I don’t care as long as we are doing the right thing. I like the systematic presentation and the attachments which suggest that the Navy has nothing to hide, with the table from Appendix A to Appendix D as the summary of the 2029 budget performance. At this juncture, may I call on Hon Osoba to move for the adoption of the performance of the 2020 budget, then we allow you to make a presentation for 2021”, he remarked.
