NDDC presents N1.911 trn 2024 budget, to borrow N1 trillion

From Abuja, Kenneth Udeh

The Niger Delta Development Commission, NDDC, on Monday submitted to the Senate, a 2024 statutory budget figure of N l, 911, 800,000, 000 for the total recurrent and capital expenditure including total revenue.

The commission’s managing director/CEO , Samuel Ogbuku submitted the proposed budget before the Senate Committee on NDDC presided by its chairman Asuquo Ekpenyong ( Cross River South).

Dr Ogbuku presented the estimates of the fiscal document to the senators, in company with top management staff of the commission and the NDDC board members.

As stated in the NDDC’s proposed budget the commission plans to source for 1 trillion naira through borrowing to finance its legacy project.

Details of the proposed budget stated that as follows, Revenue Brought Forward , N 12 billion Naira ; Arrears owned by FG and Recoveries by FG Agencies, N170 billion Naira; Borrowings 1 Trillion Naira; Federal Government Contribution, 324. 8 Billion Naira; Ecological Fund , 25 Billion; Oil Companies Contributions and 375 Billion Naira and Internally Realized Income, 5 Billion Naira.

While Proposed Expenditure is stated as follows Personnel, 38.5Billion Naira; Overhead , 29.2 Billion Naira; Internal Capital, 8.7 billion Naira; Legacy Projects funded through Borrowing 1 trillion naira and Projects development 835.2 Billion Naira.

The Senators in their scrutiny raised pertinent questions concerning the performance of the previous budget, needs assessment, scholarship scheme, state of projects among others. The Light Up Niger Delta and Flagship projects were commended by the Lawmakers.

Asuquo in his remarks commended the NDDC for their projects he however urged them to ensure that next year’s 2025 budget is submitted by December this year in line with the Federal government’s agenda.

 

He said; There are some salient initiatives the management has done like the light up the Niger delta project. That even wards and states will feel the impact of NDDC.

Asuquo also questioned the payment of debts owed to project contractors. He said “The NDDC does not have a good image due to delay in payment of contractors, what have you put in this budget? We would like to know how the payment of legacy debts?

The construction of refugee camps for displaced persons was lauded by Abia North Senator , Orji Uzor Kalu who described it as a proactive initiative.

Kalu said the panel in the 10th Senate, would carry out massive oversight functions on the projects and activities of the NDDC more than ever before.

 

He said; ” I commend the MD for the 1000 peoples camp he is building for refugees. People wait until people are affected by floods but this initiative is very commendable.

“I hope you will go all out to build this camp. People living in the creeks have nowhere to go, I hope that the budget we made will be implemented and we will hold you accountable.

Defending the Budget Ogbuku told the Lawmakers though the present administration inherited old projects the challenges of the Niger Delta keep changing.

He said the commission is on course to complete old and commission new projects. He said it planned to pay off contractors they are indebted to within 10 years saying some of its debts are up to 20 years old. He said “We might not be able to pay them off in a single year. We are planning to reduce and manage our indebtedness.

 

On the scholarship scheme Ogbuku said that it is all encompassing he added that inorder to engage the beneficiaries a Youth Internship scheme has been provided for in the proposed budget stressing that it is important to have a Data for all its scholarship beneficiaries.

 

“We must have a Data for the poor and vulnerable,with which they can benefit from our social insurance schemes, to ensure that they are captured first. The Ministry of Health and the world health organization is willing to partner with NDDC ,so it will help them in their activities in the Niger Delta.

He also said that the NDDC has a lot of ongoing regional and legacy projects but some of them can’t be completed due to variation.

He explained; “Due to the year in which some of these projects were awarded, contractors are unwilling to return to site due to the change in price of materials.

“We can’t complete some due to issues of variation and the rates today are different from those days. Some of the Contractors are not willing to go to site until the NDDC engages them to review the rate. Some of them are legacy projects . You must spend money to add value to what has been invested in already.

He also told the Senators that the Commission allocated resources to states based on the ratio of their oil production while its Partnership for Sustainable Development (PSD) was used to arrive at its needs assessment.

 

Ogbuku said the Budget was prepared to prioritize improvement in security, job creation, youth and women empowerment, social welfare, education and infrastructure, among others.

 

According to him, “the proposed Budget seeks to move the Commission from transaction to transformation and was a product of participatory budgeting process that involved all the major stakeholders in the Niger Delta Region with the theme “Budget of Renewed Hope Agenda”.