The nation few days ago, as is now customary every other day, was gripped by the trending news of a line item with the description ‘Presidential Yacht’ in the N2.2 trillion Supplementary budget sent to the national assembly by President Bola Ahmed Tinubu. The presidential yacht was requested for by the Nigerian Navy with the sum of N5 billion earmarked for its purchase in the supplementary budget.
It is understandable that many Nigerians raised concerns on the propriety of such an acquisition at this point where the nation is experiencing a severe revenue crunch and citizens are implored to endure the pains of subsidy removal which has manifested in general high cost of living. However it is equally important to have knowledge of the correct situation of things before being outraged or even if outrage is to expressed, situate such rage within proper perspectives.
I have discussed elsewhere the propriety or impropriety of the provision of N5 billion in the supplementary budget for the presidential yacht. Here I want to briefly state that the said presidential yacht, contrary to viral impression, is not meant for the pleasure rides of the President, but an operational ship for the Nigerian Navy who actually requested for it. The presidential yacht is also the naval ship on which the President, as Commander-in-Chief of the Armed Forces undertakes the Presidential Fleet Review of the Nigerian Navy anytime it is held.
Also, the request and purchase of the presidential yacht by the Nigerian Navy did not happen under President Bola Ahmed Tinubu. The said ship is already in Nigeria since June 2023 and awaiting payment hence its inclusion in the supplementary budget. It is however not all there is to the supplementary budget. The 2.2 trillion Naira supplementary budget cannot be defined by a N5 billion provision.
The 2023 supplementary budget to start with, is the largest supplementary budget in our history and promises a whole lot for the people across many sectors. I will list some of the key capital projects or interventions the supplementary budget seeks to address below:
DEFENCE
1. Purchase of 12 MD 530f Cayuse helicopters for N27 billion by the Nigerian Army to further improve the air capability of the army. The Cayuse helicopter is versatile and suitable for high temperature environments, climbs to very high altitudes and makes less noise all of which gives it element of stealth. These helicopters are obviously meant for combat operations against bandits and terrorists in the sahel regions of the North West and the North East
2. Payment of N41 billion as 50% balance for the procurement of TB2 combat drones (UAVS) by the Nigerian Army from Bayraktar including 100 MAM-L smart micro munitions for each of the aircrafts. The Bayraktar TB2 is a medium-altitude long-endurance unmanned combat aerial vehicle capable of remotely controlled or autonomous flight operations.
3. Procurement of 2 Unmanned aerial vehicles (UAVs) with spare parts for N4.8 billion by the Nigerian Navy.
4. Procurement of 2 Beechcraft aircrafts by the Nigerian Air Force for N3.8 billion and 6 Tsaigumi Unmanned Aerial Vehicles at a cost of N1.5 billion. These drones are designed and built locally by the Nigerian Air Force. The Airforce is also purchasing N80 billion worth of aircraft ammos to sustain operations across many theatres.
ROADS/BRIDGES
5. The sum of N300 billion was voted for major and minor repairs as well as reconstruction of federal roads and bridges across the six geopolitical zones totalling 324 project sites. Some of the major interventions include the urgent rehabilitation of the third mainland bridge in Lagos for N15 billion, reconstruction of the Okene-Ajaokuta-Itobe Road, completion of the Loko-Nasarawa Road, dualization of Kano-Katsina Road, Ota-Idi-Iroko Road, Ore-Shagamu road, rehabilitation of failed sections of the East-West Road, rehabilitation of Otuocha-Anam-Nzam-Ibaji road, construction of Section 2 of Abuja-Lokoja road among many others.
Crucially, provisions for pre-project activities were made for the Abuja-Lagos superhighway and Lagos to Cross River coastal superhighway PPP projects marking a significant step forward for the realisation of these high ticket infrastructure projects. FEC had already given preliminary approval for these projects to proceed to design and costing phase.
AGRICULTURE AND FOOD SECURITY
6. A provision of N200 billion was made for the Ministry of Agriculture and Food security in the supplementary budget out of which N25 billion is for the re-stocking of Nigeria’s national strategic reserves with 150,000 metric tonnes of assorted food commodities. An unprecedented sum of N11.7 billion was earmarked for the provision of seedlings and farming inputs to farmers in each of the six geopolitical zones.
N25 billion was earmarked for dry season farming covering additional 80,000 hectares under the National Agricultural Growth Scheme earlier announced by the President in a nationwide broadcast. This intervention will be for the production of wheat, maize, rice and cassava.
Another N11.7 billion per geopolitical zone was also earmarked for the provision of agricultural implements and infrastructure in the Supplementary budget. This is a major boost to improving mechanisation of agriculture and ensuring food security.
HOUSING
7. The housing sector got N200 billion allocation in the supplementary budget out of which N50 billion is for the construction of 40,000 units of Renewed Hope mini cities/estates across the 36 states and the FCT under the National Housing Programme of the Tinubu administration. The other N50 billion is for slum upgrade and urban renewal through provision of developmental infrastructure and facilities spread across the six geopolitical zones.
WORKERS WAGE AWARDS/CASH TRANSFERS
8. The biggest chunk of the supplementary budget is the N610 billion provided for the implementation of President Tinubu’s promised interventions as part of efforts to cushion the impact of the fuel subsidy removal. In his October 1st broadcast, President Bola Tinubu announced a wage award of N35,000 to all treasury-paid federal workers for four months.
In this 2023 supplementary budget, N210 billion has now been earmarked for the cash awards. Also the sum of N400 billion was earmarked for the cash transfers of N25,000 per month to 15 million Nigerians, which President Tinubu equally announced in his independence day broadcast. This cash transfer is for three months.
STUDENT LOANS
9. President Bola Tinubu recently during his remarks at the 29th National Economic Summit organised by the Nigerian Economic Summit Group unequivocally stated that the Student Loan Programme will kick off by January 2024. In the 2023 supplementary budget, N5 billion have now been earmarked to fund this expected January 2024 take off. This N5 billion is different from the main provision for the Student Loan Fund that will be included in the 2024 Appropriation Bill to the National Assembly.
From the foregoing, it is clear that the 2023 Supplementary Budget is one that seeks to give financial backing to the key priorities of the Tinubu administration that were not and could not have been captured in the 2023 Appropriation Act. From the supplementary budget, we can see that President Bola Tinubu is determined to equip the Armed Forces with all they need to secure this nation and has continued with the unprecedented purchase of equipment and assets for the military the started in the Buhari administration.
Also the fact that the Ministry of Works got N300 billion allocation for repairs and funding of ongoing road reconstructions further indicates the priority President Bola Tinubu attaches to quickly revamping our road infrastructure and making the roads safe and motorable for Nigerians. Through the HDMI, the federal government of course intends to quicken the provision of road infrastructure by sourcing for funds outside of the federal budget.
Food security is also clearly a big priority for the Tinubu administration to warrant a N200 billion provision in the supplementary budget. Exciting times are surely around the corner for farmers and agricultural processors because President Bola Tinubu is determined to increase our agricultural outputs as a nation in addition to ensure value addition for our agricultural produce.
The consumer credit and mortgage system is one area President Bola Tinubu has always been passionate about especially when he talks about preventing corruption in the public service. The provision of N50 billion for 40,000 units of affordable housing is a bold step that will provide the government the first opportunity to show Nigerians that a Morris Minor can indeed own a house without having to pay a huge lump sum at once. The housing sector is set for revolution in the coming years.
The furore around the presidential yacht line item should therefore not take away the immense leap we can achieve in terms of our defence capabilities, road infrastructure, housing, food security and poverty alleviation with this supplementary budget.