…Summons Finance, Budget, Planning, Niger Delta Ministers
….We Owe contractors N50bn- Niger Delta Minister
The Senate on Thursday suspended deliberation on 2924 budgetary allocation to Niger Delta Ministry over meager allocation to the ministry.
This is as the upper chamber has invited Ministers Finance, Budget and National Planning and Niger Delta Minister appeared before its committee on Niger Delta on the paltry allocation to the ministry in addition to the delay in releasing funds to the ministry.
The decision to invite the ministers followed a motion by Senator Siraki
Dickson on the need to review upward the budget of Niger Delta ministry at its budget defence.
In his motion, Senator Dickson said, “there is need to focus on the proper funding of the ministry of Niger Delta bearing in mind that this was the ministry established to address the challenges of development and carry out meaningful intervention programme development in Niger Delta.
“But unfortunately and particularly after listening to the Minister and when he presented the budget which, with all due respect is far cry from the founding principles of that ministry.
“I hereby moved that this budget consideration on the budget defence of Niger Delta ministry be hereby stood down and an invitation be extended to Hon Minister of Niger Delta and his two counterparts: The Minister Finance, and coordinating minister and minister of Budget and National Planning for an interactive session with this committee to explain issues that has to do with proper funding of this ministry.
“Secondly to address the issue of failure and delay or refusal in making budgetary releases to the ministry.”
Earlier in his presentation, Minister of Niger Delta Affairs, Engr. Abubakar Momoh has said that the ministry owes contractors over N50 billion from projects executed, ongoing projects and abandoned projects.
Momoh stated this when he appeared before a Joint Committee on Niger Delta Development Commission (NDDC) to defend his 2024 budget and explain how his budget performed in 2023.
According to Momoh, the budget of the ministry is meager, adding that so many things they are supposed to do are being performed by other agencies.
He said an amnesty programme which deals with disarmament is now carrying out programmes of development and empowerment.
“There are alot of programmes going on in the Niger Delta which ordinary should be done by the ministry,” Momoh said, adding that for the 2023 budget performance, there budget estimate was N14.5 billion but that even though N11 billion was later approved, only N4.2 billion was released which according to him, is too small to even embarked on a road project.
“A total of 14.5 billion was the estimate including capital, recurrent and overheads but what came to the ministry was just N4.2 billion out of the N11 billion that was approved. The 2023 budget performance is put at 37 percent,” Momoh said.
“The N14 billion budget estimate is meagre to meet the requirements of the ministry. How many kilometers of road can N4 billion construct? Momoh asked.
He said: “We have a lot of abandoned projects. We have a lot of completed projects. Those that have been awarded and have not been paid are worth over N50 billion,” Momoh said, adding that they are money to be paid on projects they are awarded
Since I took over, I’ve gotten over 2000 requests from people asking for training in the Niger Delta. If I have the required resources, be assured that I will do a lot,” Momoh said.
He said he is not aware whether the president is aware of the N50 billion debt in his ministry because, according to him, he has not had the opportunity of discussing the issue with the president but that the ministry of finance is aware of the debt.
The chairman of the Senate committee, Babajide Ipinsagba, said they must do everything to ensure that the people that are being owed are settled since most of them collected loans to do the projects.
Ipinsagba said the problem is the cash plan, adding that, “If a contractor completed his job, it is expected that once the Minister approves you should get your money in two weeks.
“But you have to upload the approval and another person will determine if there is money to pay for the job done,” he said.
Also the House committee chairman, House of Reps Committee Chairman on Niger Delta, Ugonna Ozurigbo, said the minister should look at projects he can complete and commission and not embark on projects that will later be abandoned.