Inadequate funding is hindrance to our operations -Navy

On Monday, the Nigerian Navy stated that insufficient fighting jets, arms, and ammunition are impeding its performance in the fight against insecurity.

Rear Admiral Awwal Zubairu Gambo, Chief of Naval Staff (CNS), stated this while defending the Navy’s 2022 budget before the House of Representatives Committee on Navy, chaired by Rep. Yusuf Gagdi.

Other issues impeding personnel performance, according to Gambo, include obsolete logistics, huge material and personnel costs for maintaining seized and arrested vessels and baggies, and a shortage of barracks accommodation for its personnel.

“The Nigerian Navy’s immediate operational challenges include insufficient platforms, jetties, arms and ammunition, and obsolete logistics support facilities.” Others include massive material and personnel costs for maintaining seized and arrested vessels and baggies, as well as a shortage of barracks accommodation. The brief before you briefly highlights some of the key challenges.”

Read also:  Rivers monarch protests the arrest of a passenger boat, and the Navy launches an investigation

In reviewing the 2021 budget performance, Gambo stated that a capital budget of N25.3 billion was appropriated for 2021 and has been fully released so far.

According to him, the funds released have been used to carry out critical projects.

The Naval Chief stated that a total of N220,236,832,129.64 was proposed for the 2022 budget but was slashed to N25.8 billion by the Ministry of Budget and National Planning.

“The Nigerian Navy’s priority projects are fleet renewal, concept and organization, capital development, fleet support infrastructure, operations, logistics, and personnel welfare, as outlined in the strategic plan 2021 to 2030.” Thus, the Nigerian Navy’s initial capital expenditure budgetary estimates for 2022 totaled N220,236,832,129.64. However, the Nigerian Navy was forced to reduce the estimate to N25.8 billion, which is equivalent to approximately 11% of the Nigerian Navy’s needs and was set by the Ministry of Finance, Budget, and National Planning as the Nigerian Navy’s budget ceiling.

Read also:  200 pharmaceutical workers in Kano may lose their jobs as result of Court Tussle

“The Nigerian Navy’s personnel costs for 2022 total N108,165,092,586.” This amount is required for the payment of salaries and, in particular, the allowances outlined in the 2017 Manual of Financial Administration for the Nigerian Armed Forces. A portion of the funds proposed will also go toward the National Health Insurance Scheme.”

Gambo stated that the Navy expects to raise approximately N232,934 million in internally generated revenue (IGR).

“The Nigerian Navy’s IGR forecast for 2022 is N232,934,11.04. The revenue is expected to come from the auction of inoperable equipment, contractor registration and taxes, VAT, and stamp duty. The ongoing fleet renewal, concept and organization, fleet support infrastructure, operations logistics and capacity upgrade will remain the primary focus of the 2022 budget, while efforts to improve personnel welfare will also be maintained,” he said.

Earlier in his remarks, the committee’s chairman, Gagdi, while commending the Navy’s performance despite poor budgetary allocation, warned the institution against tolerating contractors who delay project execution.

Read Also:  CBN: Foreign currency inflows fell to $1.83bn in 2020, Year of COVID

“However, the committee observed with pessimistic views, the spilt over projects (against agreed timelines) by some contractors, including some that spanned beyond three years without any signs of completion, handover to the Navy, or concrete work-in-progress,” Gagdi said. “From now on, the House of Representatives and the National Assembly will not hesitate to summon any MDA, including the Nigerian Navy, that fails to checkmate any erring contractor whose stock in trade is to waste tax payers’ money by taking for granted the delivery of public goods and services within specified timeframes and quality of work,” he added.