The transport sector of the Nigerian economy is still prostrate among the non-oil sectors and lagged in revenue generation in 2020 according to Zainab Ahmed, the minister for finance, budget and national planning.
A total of N135.688 billion was allocated to the Transport ministry in the 2020 budget of which N123.069 billion was for capital expenditure, regrettably, however, this huge budgetary allocation brings incommensurable revenue in the year.
The transport sector consists of several industries including air freight and logistics, airlines, marine, road and rail, and transportation infrastructure.
The minister said that the non-oil sector of the Nigerian economy experienced more revenue earnings in 2020 but sectors such as transport still remain in the negative.
Although accruals from the sector were not stated, Ahmed noted that “Significant concerns still exist in the performance of trade, as well as transport sector which is still in a very strong negative growth”, she said.
Ahmed spoke at the Monday night meeting with Federal Lawmakers over 2022-2024 Medium Term Expenditure Framework and the Fiscal Strategy Paper (MTEF/FSP) on which the 2022 budget is predicated.
The meeting which involved President of the Senate, Senator Ahmad Lawan, and the Speaker of the House of Representatives,. Femi Gbajabiamila, Monday evening and started at 5:11pm lasted till about 7:15pm with the Deputy Senate President, Ovie Omo-Agege, the Deputy Speaker, Ahmed Idris Wase and some other principal officers of both chambers, as well as Senators and Members of the House of Representatives in attendance.
Ahmed, recalled that Nigeria was able to make a quick exit from recession in the third quarter of 2020 despite the impact of the COVID-19 pandemic on the global economy.
The pandemic had an attendant “negative growth” on the Nigerian economy as a result of the significant and sudden drop in crude oil price in the international market.
The Finance Minister disclosed that the Nigerian economy was driven in 2020 by the revenue earnings from non-oil sectors, most especially the telecom and the agriculture sector.
“The economy since then has sustained a tepid growth in the first quarter of 2021, with a growth of 0.51 percent consolidating our exit from recession in the fourth quarter.
She said the growth of the non – oil sector which rose to 0.79 per cent in 2020 drove the growth of the Nigeria economy and masked the deterioration in the oil sector.
“The sectoral growth in the non-oil sector was primarily driven by telecoms and agriculture sectors as well as other sectors of the Nigerian economy.
Lawan, at meeting held at the instance of the leadership of the National Assembly on the projections in the 2022-2024 MTEF/FSP that are to facilitate the early presentation of the 2022 budget by President Muhammadu Buhari in September this year, explained that the early passage of the 2020 budget was responsible for the 100 percent implementation of the 2020 Appropriations Act which, according to him, would be achieved also in 2021.
The Senate President added that the interaction between the National Assembly and the Ministry of Finance on the 2022-2024 Medium Term Expenditure Framework would facilitate the early presentation of the 2022 Appropriations Bill in September this year.
“We all recall how this Ninth National Assembly committed itself Ab initio to ensuring the passage of the Appropriations before the end of December of every year, to enable the implementation of the Appropriations Act to start January of every year
“So far, we have achieved that in the 2020 budget and 2021 budget as well. This has significantly improved the implementation of the Appropriations Act, culminating in the 100 percent implementation of the 2020 budget, and we are optimistic that the implementation of the 2021 budget would also achieve 100 percent.
The 2022 Appropriations Bill is predicated on the MTEF/FSP 2022-2024 and the interaction is compelling so that the National Assembly considers the MTEF in very good time to allow the Executive arm of government prepare the Appropriations Bill for 2022.
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