Tuesday, 21 January 2025 15:16

Minister queried over alleged lopsidedness in 2024 budget

Members of the Joint Senate and House of Representatives Committee on Regional Development on Tuesday questioned the Minister of Regional Development, Abubakar Momoh, over alleged lopsidedness in the Ministry’s 2024 budget.

The queries were raised when the Minister, accompanied by the Minister of State, Uba Maigari, appeared before the committee to defend the 2024 budget performance and present the 2025 proposal.

Lawmakers pointed out that the Ministry’s budget disproportionately favored Edo State, with 70% of the 2024 projects allocated to the state, to the detriment of other states meant to benefit from its projects.

The committee also criticized the Ministry’s failure to adhere to the federal character principle in the distribution of projects.

During the session, Hon. Matthew Nwogu of the House of Representatives demanded an explanation for the concentration of projects in Edo State.

 

“Mr. Minister, tell us why most of these 2024 budget projects are situated in Edo State,” Nwogu asked, expressing concern over the exclusion of other states under the Ministry’s purview.

Similarly, another member, Hon. Chinedu Ogar questioned why 70% of the proposed 2025 projects were also allocated to Edo State.

“Honorable Minister, I am happy that you are a product of the National Assembly. However, my constituents are unhappy with this budget because it negates the constitutional principle of federal character. About 70% of your projects are located in Edo State. Why?” Ogar queried.

In response to the heated discussions, Chairman of the House Committee on Regional Development, Eugene Okechukwu, called for the matter to be discussed in an executive session, and the committee dissolved into a closed-door meeting with the Minister.

Earlier, the Minister presented the 2024 budget performance, revealing that N20 billion was allocated for the Ministry’s capital budget. 

He said of this amount, N2 billion was earmarked for zonal intervention projects by the House Leader, Prof. Julius Ihonvbere, who is from Edo State.

The Minister said that the Ministry’s total 2025 budget proposal stands at N28.9 billion, comprising N24 billion for capital projects, N2.7 billion for personnel costs, and N1.6 billion for overhead. 

He explained that N2 billion of this amount was also reserved for zonal intervention projects for the House Leader.

He lamented that the funds allocated to the Ministry were insufficient to address the developmental needs of the five regional commissions under its mandate.

“The amount allocated to the Ministry for Regional Development is inadequate to meet the development needs of the regions,” the Minister said. 

He highlighted challenges such as abandoned projects, delays in project completion, and contractor noncompliance due to price variations caused by limited funding.

The Minister detailed the scale of challenges facing the Ministry, noting that projects initially requiring N5 billion for completion now demand up to N70 billion due to inflation and delayed funding.

“When we took over, the first assignment I gave was to assess ongoing projects. It was alarming to find that projects requiring N5 billion or less had escalated to N70 billion. Contractors have since refused to return to sites until their debts are paid,” he said.

He emphasized the need for increased funding to address these challenges and deliver on President Bola Tinubu’s mandate for regional development.

Chairman of the Senate Committee on Niger Delta Affairs, Senator Olajide Ipinsagba, described the transformation of the former Ministry of Niger Delta Affairs into the Ministry of Regional Development as a landmark decision. 

He commended the Federal Government for expanding the Ministry’s mandate to include regional development across the entire country while still prioritizing the Niger Delta.

“This broader scope reflects a commitment to inclusive national development, addressing inequalities, and fostering economic empowerment across all regions,” Ipinsagba stated.

Chairman, House Committee Eugene Okechukwu urged the Ministry to ensure equitable distribution of projects among states and regions, cautioning against favoritism.

“A situation where some states benefit more than others will cause disaffection and undermine the President’s vision for regional development,” he warned.

He commended President Tinubu for creating the Ministry of Regional Development and pledged the support of both Senate and House Committees to ensure the Ministry is adequately funded.

“The only way the Ministry can achieve its mandate is through equitable project distribution and adequate funding. We are here to support you in delivering on your objectives,” Okechukwu concluded.

[TheNation]



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