Residents of the Federal Capital Territory would have to brace up for tougher times ahead following the 77.1 percent budget slash projected in the 2023.
The N59billion earmarked for the territory from its 1percent allocation from federal budget in 2022 fiscal year, dropped to N13.5billion for the 2023 fiscal year.
FCT minister, Mallam Muhammad Bello, while defending the N607.9billion 2022 budget before the National Assembly joint Committee on FCT, said only N19billion has so far been released from the N59billion allocated to it from the federation account in the 2022 fiscal year.
“The FCT budget has two components. One is yearly allocation from 1percent of the federal government share of the federation account and the second one is internally generated revenue which has over the years been the main sustenace of governmental operations in FCT.
“In the N607.9billion 2022 budget of FCT, the federal allocation is just N59billion out of which only N19billion has been released.
“For the 2023 fiscal year, the projected federal allocation has been drastically slashed to N13.5billion despite increase in the number of planned projects from 20 in the 2022 fiscal year to 22 in the 2023 fiscal year,” he said.
He told the committee members that out of the proposed N607.9billion 2022 budget, N76.6billion is for personnel cost, N138billion for overhead cost while the remaining balance of N393.2billion is for capital projects.
According to him, one of the critical projects the capital votes are to be used on, is the Greater Abuja Water Project, planned to provide portable water for 29 additional districts within the territory.
He said as a result of huge financial demands, the territory is now adopting integration of indigenes into newly opened districts as against resettlement policy that has been causing crisis over the years.
“System of re-settlement earlier put in place has not worked, making us to adopt the policy of integration as presently being done in Kabusa,” he said.
Responding, the chairman of the committee, Senator Smart Adeyemi, tasked the minister to start implementation of property tax in FCT for required revenue generation.
He said the implementation of property tax in the FCT can help generate upto N250billion in a year.
According to him, “It is only in Nigeria that people are allowed to build houses or estates without renting them out for many years, which invariably serve as hideouts for criminally minded ones.
“With enforcement of payment of property tax, such practices will stop.”
On security, he disclosed to the committee members that 60 vehicles worth N2billion, would be distributed to various security agencies like the Nigeria Police, the Army, Civil Defence, FRSC.
