Finance Minister: “The reason we included N1.7 trillion projects in MDAs budget”

14 ministries, departments, and organizations’ budgets for N1.7 trillion in projects were included, according to the Finance Minister Zainab Ahmed.

In response to accusations of budget padding made against her government, Ahmed made this statement.

It may be noted that during budget defense hearings in the Senate, certain agencies alleged that billion-dollar projects were added to the budget without their approval.

The Minister clarified that these projects are to be financed by loans during his Tuesday appearance before the House of Representatives Committee on Appropriations.

She said that while loans were not previously included in the budget, the federal government now does so for the sake of openness.

Previously, only the allocations for counterpart payments and debt service were included in the FGN budget, which did not properly account for these loans.

She explained, “We opted to completely record these project connected loans in the FGN budget in order to promote transparency and the comprehensiveness of the FGN budget, consistent with worldwide best practice.

She stated that the National Safety Nets Project, supported by the World Bank, has a budget of N206 billion for the Ministry of Humanitarian Affairs, Disaster Management, and Social Development.

Ahmed noted that the Ministry of Power’s budget also includes N195 billion in funding from other global organizations.

Among the projects are the Power Sector Recovery Operation (PSRO), sponsored by the World Bank, and the Zungeru HydroElectric Power Project, funded by the Export-Import Bank of China.

The Committee decided that the Minister of Humanitarian Affairs, Sadiya Farouk, must appear before it for clarification after hearing her justification.