Lawmakers Query Oyetola Over Alleged Underutilisation Of N130m Appropriation Funds

Federal lawmakers from the Senate and the House of Representatives on Wednesday, queried the Minister of Blue Economy over alleged underutilisation of N130 million released for rehabilitation, utilisation and patronage of eastern ports

This is just as they tasked the Minister, Adegboyega Oyetola on the need for Nigeria to tap into the $1.8 trillion Blue Economy potential to improve revenue generation through the maritime industry.

The lawmakers issued the query at the 2024 budget defence held at the instance of the joint Committees on Ports & Harbours and other Standing Committees, also expressed regrets over the report on the loss of over N1 trillion revenue due to poor infrastructure in the maritime industry.

During the scrutiny of the 2024 budget proposal, the lawmakers demanded for breakdown of the lump sum of N1 billion proposed for procurement of official vehicles for the Minister, permanent secretary (2 Toyota Landcruisers), 7 Innoson Pickups for Project vehicles and 7 units of 28 seater CNG buses for the new ministry.

Other unaccounted expenditures include (N10 million); monitoring for navigational channels Calabar River Port (N15 million); Women empowerment on maritime related activities, world seafarers day and world women in maritime international day (N25 million); Coordination of process of establishing/designating a National Career (Shipping) – N20 million; International seabed Authority (ISA)/United Nations Convention on law of the sea (UNCLOS) and Development of Inland Dry Ports including Ministerial Standing Committee on delivery of Inland Dry Ports (N10 million), respectively.

Responding to the inquiries, Adegboyega Oyetola explained that the total capital appropriated for Marine related programmes in 2023 was N777 million, out of which N448,027,468 has been utilised as at the end of November, 2023.

According to him, the sum of N382,185,472 was appropriated for overhead expenditure, out of which N254,790,314.70 was released as at 29th November, 2023.

In the proposed 2024 budget proposal, the Ministry proposed N10,781,130,916 as total capital budget while the sum of N191,086,917 as overhead expenditure.

The Minister noted that three of the agencies under the ministry, namely NPA, NIMASA and NSC are fully self-funding and make reasonable remittances to the Consolidated Revenue Fund (CRF/TSA) while National Inland Waterways Authority (NIWA), Maritime Academy of Nigeria, Oron and Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) derive their funding from both the Federal Government Budget and Internally generated revenue.

Oyetola also disclosed the Ministry’s plans to dredge some of the existing ports while efforts are being intensified to build new ports in various locations across the country, including Badagry in Lagos State and Ondo State.

While admitting that shippers divert vessels to neighbouring countries, Oyetola stressed the need for adequate funding for the dredging of various ports so as to enable them to take big vessels.

The Minister who expressed displeasure over the level of infrastructure decay at the Tin Can Inland and other ports during his official assessment of the ports on assumption of office, disclosed that about $1.2 billion will be required to fix the ports, adding that he has started discussion with various stakeholders including World Bank and other banks as well as Contractors on the funding of the project.

He also assured of the Ministry’s resolve to adopt technology as well as National Single Window policy, reduce the level of human interface as well as reduce the clearance of cargoes at various ports across the country.

Oyetola who explained that authorities of Nigeria Customs Service (NCS) is positively disposed to the use of scanners at the ports, however underscored the need for attitudinal change.

The Minister further solicited for the support of the Parliament on the establishment of Coastal Guard in the bid to ensure safety and Nigerian Ports, and boost revenue through fishery in the Blue Economy industry as part of efforts to reduce $4 billion spent on importation of fishes into the country.

While noting that not less than 28 States are connected to water, he underscored the need for massive investment in the dredging of waterways for improved water transportation.