Ibok-Ete Ibas, the chief of Naval Staff, on Friday, November 6, 2020, revealed that the Nigerian Navy generated over N884 million in 2020 as its internally generated revenue, IGR.
Ibas revealed this during the 2021 budget defence held by the House of Representatives Committee on the Nigerian Navy.
He said that the revenues were generated from stamp duty, auction of unserviceable equipment among others. He explained that in 2020, over N16 billion was released to cover eight projects, adding that 75 percent of the 2020 appropriation was released for capital projects.
Ibas also said that over N11 billion was appropriated for overhead cost in the 2020 budget, but added that only 74 percent of the budget was released.
He said that the Nigerian Navy had been occupied with its national policing role and that it had curtailed the activities of illegal bunkering, pipeline vandals, insurgency among others.
He noted that the Federal Government recently boosted the morale of the Navy with 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.
For the 2021 budget proposal, the Chief of Naval Staff said the Nigerian Navy’s priority projects for the 2021 capital proposal are fleet renewal, operations logistics, fleet support infrastructure, capacity development, and personnel welfare.
According to him, ”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.”
Meanwhile, the House Committee on the Nigerian Navy passed a vote of confidence on the Navy for good performance of the 2020 budget. In his response to the Naval boss, the Chairman of the Committee, Rep. Yusuf Gagdi said he was happy that the Navy had nothing to hide.
He called on a member of the Committee, Rep. Olumide Osoba to move a motion for the adoption of the 2020 budget performance of the Nigerian Navy.
Gagdi said that the committee had decided to complete its oversight function in some of the places it could not visit as a result of the lock-down occasioned by COVID-19 pandemic.
The lawmaker added that the oversight function would enable the committee to add value to the Navy’s 2021 budget to enable it performed optimally.
Source: Vanguard
