Senator Atiku Bagudu, the Minister of Budget and Economic Planning, on Tuesday announced plans for a 2024 Supplementary Appropriation Bill aimed at funding critical infrastructure projects such as the Lagos – Calabar Coastal Road, various railway initiatives, and the Sokoto – Badagry Road. During a briefing to the Joint Committees of the Senate and House of Representatives on National Planning and Economic Affairs, Bagudu outlined the funding strategy and addressed potential financial challenges.
Bagudu revealed that the upcoming bill would partially rely on the N50 billion Presidential Infrastructure Development Fund (PIDF), currently managed by the National Sovereign Wealth Investment Authority (NSWIA). However, he expressed concerns that the PIDF alone may be insufficient to cover the extensive costs of the ambitious Renewed Hope Transformational Projects.
To bridge the funding gap, the federal government is seeking a $2.5 billion loan from the World Bank, alongside other revenue streams. Bagudu mentioned that the World Bank leadership is scheduled to convene soon to deliberate on the loan application, highlighting the urgency and importance of securing additional funds.
“The supplementary budget that was announced or rather was mentioned, came about when Mr. President presented a memo to the Federal Executive Council,” Bagudu explained. “In the memo, he said that he inherited the Presidential Infrastructure Development Fund, which was domiciled in the National Sovereign Wealth Investment Authority.”
The minister emphasized that the funds from the supplementary budget will be allocated to four specific transformative projects. These include the Lagos – Calabar Coastal Road, the Sokoto – Badagry Road proposal, and the finalization of all current railway projects that lack federal government counterpart funding. Additionally, the budget will support the rehabilitation and expansion of dams and irrigation schemes to bolster increased production within the economy.
“We also plan to fund the rehabilitation and expansion of dams and irrigation schemes in order to support increased production within the economy,” Bagudu added. “Last but not the least, more money to support CNG, LNG.”
He further elaborated that these projects have been designated as priority items under the Renewed Hope infrastructure initiative. “The three roads, dams and irrigation, and railways are what Mr. President designated as the infrastructure, renewed health infrastructure priority items,” Bagudu stated. “So that’s what he directed that the ministry prepares for appropriation supplementary appropriation bill.”
Bagudu acknowledged that the work on the bill is still in progress and has not yet been submitted to the Federal Executive Council. He noted significant interest from various stakeholders, including the National Assembly leadership and numerous members, regarding the supplementary appropriation for these crucial projects.
