2025 Budget Defence: Senate decries N40 billion loan deductions from Water Ministry’s budget, calls for increased allocation

The Senate Committee on Water Resources has expressed concern over the N40 billion multilateral and bilateral loan deductions from the Ministry of Water Resources and Sanitation’s 2025 budget allocation. These deductions, the Senate noted on Tuesday, leave the ministry with inadequate funds to execute critical projects.

The lawmakers highlighted the devastating annual flooding crises that plague the nation, describing them as economic and social catastrophes. They lamented that the 2025 budget allocation is insufficient to address these challenges or ensure meaningful progress in the ministry’s objectives.

Senator Kenneth Chukwuemeka Eze, chair of the committee, raised concerns about the ministry’s financial constraints, asking, “What happened to the projections for 2025 when loan repayments have consumed a significant portion of the budget?”

During the budget defense session, Minister of Water Resources and Sanitation, Prof. Joseph Utsev, elaborated on the ministry’s challenges. He stated that the allocation for loan repayments deducted at source has left the ministry with only N57.7 billion for its activities.

“In the 2025 budget proposal, priority is given to completing ongoing dam and irrigation projects to enhance agricultural productivity and food security,” Prof. Utsev said. He emphasized the need for aggressive implementation of water, sanitation, and hygiene (WASH) programs, as well as flood and drought mitigation measures.

The minister outlined plans for collaboration with the private sector under Public-Private Partnership (PPP) arrangements for dam and hydropower projects, as well as partnerships with international organizations to scale up interventions in sustainable water management and sanitation.

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.”

Prof. Utsev also appealed to the Senate committee for support:
“Distinguished Senators, I sincerely appreciate your unwavering commitment to our mandate. With your continued support, we can achieve shared goals critical to the well-being of Nigerians. We urge this committee to consider increasing our budget allocation to ensure the ministry can continue delivering essential services to the nation.”

Addressing the issue of annual flooding, Prof. Utsev noted that a presidential committee had been inaugurated to tackle the problem. He emphasized the importance of its mandate in mitigating flood risks across the country.

The Senate called for enhanced public awareness campaigns to end open defecation and address the recurring flooding disasters. They urged the ministry to work closely with the legislature, pledging their intervention where necessary to secure additional funding from the presidency.

The lawmakers reiterated their commitment to supporting the Ministry of Water Resources and Sanitation in fulfilling its mandate to improve water management, sanitation, and flood control, ensuring long-term benefits for all Nigerians.