The Chief of Naval Staff, Vice Admiral Ibok-Ete Ibas says the Service was a constraint to reduce the budget and overhead expenditures for the 2021 fiscal year by N162.297 billion in line with Federal Government’s envelope system for the 2021 fiscal year.
Vice Admiral Ibas stated this in Abuja, during the 2020 budget performance and 2021 budget defence held by the House of Representatives Committee on Nigerian Navy.
According to him, out of the total sum of N182.612 billion ($464,663,475) for capital expenditure initially proposed by the Nigerian Navy, Federal Ministry of Finance, Budget and National
Planning envelope system was pegged at N20,315,649,968 ( about $51 million).
Similarly, out of the total sum of N38,362,386,414 initially proposed for Overhead Cost, the envelope system was pegged at N11,240,714,955 while Personnel Cost was put at N103,502,975,227.
According to him, key priority projects proposed in the 2021 budget proposal being considered by the National Assembly to include fleet renewal, operations logistics, fleet support infrastructure, capacity development and personnel welfare.
He said: “The Nigerian Navy’s initial capital expenditure budget estimate for 2021 was N182.612 billion, equivalent to $464,663,475.
However, the Nigerian Navy had to review the estimates down to N20,315,649,968, which is equivalent to about $51 million, which was the budget ceiling given by the Ministry of Finance, Budget and National Planning.
“For the 2021 Overhead Cost, the initial Overhead proposed by the Navy was N38,362,386,414. This projection could, however, not be submitted as the Navy was pegged at N11,240,714,955, a budget ceiling given by the Ministry of Finance, Budget and National Planning. It is worth mentioning that the Overhead budget provision is inadequate in the face of rising costs and the Nigerian Navy’s increasing operational deployments.
“For 2021 Personnel Cost proposal, Nigerian Navy Personnel Cost proposal amounts to N103,502,975,227. This amount is required for the payment of personnel salaries and allowances as contained in the manual of financial administration for the Armed Forces of Nigeria.”
While speaking on the 2020 budget implementation, Vice Admiral Ibas disclosed that over N16 billion (representing 75 per cent) was released to cover eight capital projects.
Ibas also said that 75 per cent out of the total sum of N11 billion appropriated for Overhead Cost in 2020 budget has so far been released, adding that the sum of N884 million was generated from Stamp Duty, auction of unserviceable equipment among others in the year under review.
On the successes recorded by the Nigerian Navy, Vice Admiral Ibas applauded Federal Government’s efforts through the purchase of requisite weaponry and other equipment needed to combat criminality on the sea, adding that there are now progressive decreases of attacks on ships.
In his remarks, Chairman, House Committee on Nigerian Navy, Hon. Yusuf Gagdi who applauded the performance of Nigerian Navy in the implementation of the 2020 Appropriation Act, unveiled the Committee’s plans to complete its oversight function in some of the places it could not visit as a result of the COVID-19 lockdown.