The Senate has expressed concern over the proposed N40 billion multilateral and bilateral deductions in the 2025 budget for the Federal Ministry of Water Resources and Sanitation.
The Senate warned that these deductions would hinder the Ministry’s ability to fulfill its responsibilities in providing water to Nigerians.
This stance was made clear by the Senate Committee on Water Resources and Sanitation during the Ministry’s budget defense session on Wednesday in Abuja, where the Minister of Water Resources, Prof. Joseph Utsev, and other ministry officials appeared before the committee.
Senator Kenneth Chukwuemeka Eze, Chairman of the Committee, voiced strong concern about the impact of loan repayments on the ministry’s budget. He questioned how a critical ministry, tasked with ensuring access to water for Nigerians, could be left with insufficient funds while focusing primarily on repaying loans. He described this situation as an unsustainable approach for the ministry’s operation.
“What happened to the projections for 2025 when loan repayments have consumed a significant portion of the budget?” Senator Eze queried.
Committee members also highlighted the severe impact of erosion across the country, calling it an economic and social crisis that should be addressed through the 2025 budget allocations.
In his presentation on the previous year’s budget performance, Minister Prof. Joseph Utsev explained the challenges faced by the ministry. He revealed that loan repayments had significantly reduced the ministry’s budget, leaving only N57.7 billion for its operations.
The minister emphasized that the 2025 budget proposal prioritizes the completion of ongoing dam and irrigation projects aimed at boosting agricultural productivity and food security. He also discussed plans to collaborate with the private sector through Public-Private Partnership arrangements for dam and hydropower projects, and to partner with international organizations to enhance sustainable water management and sanitation.
Utsev stressed that with adequate funding, the ministry could complete critical projects that would contribute to job creation, poverty reduction, and overall economic growth. However, he pointed out that limited capital project allocations and insufficient overhead funding for day-to-day operations remain major challenges.
He said: “In the 2025 budget proposal, priority is given to completing ongoing dam and irrigation projects to enhance agricultural productivity and food security.”
He added, “The Ministry believes that with adequate monetary allocations, we can complete viable projects that contribute to job creation, poverty reduction, and overall economic growth.
“However, the ministry faces a limited expenditure ceiling for capital projects and insufficient overhead allocation to cover day-to-day operations.”
