Senate Raises Alarm: N40 Billion Deduction Could Derail Water Ministry’s 2025 Plans
The Nigerian Senate has expressed serious concerns over a proposed N40 billion multilateral and bilateral deduction in the 2025 budget of the Federal Ministry of Water Resources and Sanitation, warning that the cut could severely hamper the ministry’s ability to fulfill its mandate of providing water to Nigerians. This issue was raised during the ministry’s 2025 budget defense session on Wednesday in Abuja, where Minister of Water Resources, Prof. Joseph Utsev, and ministry officials appeared before the Senate Committee on Water Resources and Sanitation.
Committee Chairman, Senator Kenneth Chukwuemeka Eze, voiced deep concern over how the critical responsibility of water provision for the nation could be compromised by insufficient funding. He questioned how a ministry tasked with such an essential function could face financial constraints while a significant portion of its budget was being allocated to loan repayments. “What happened to the projections for 2025 when loan repayments have consumed a significant portion of the budget?” Senator Eze asked, expressing his frustration over the lack of adequate financial support.
The Committee, joined by other members, also discussed the escalating issue of erosion across Nigeria, which they described as both an economic and social catastrophe. They emphasized that addressing the erosion crisis should be a priority in the 2025 budget.
In his presentation on the previous year’s budget performance, Minister Prof. Utsev outlined the challenges his ministry faces, particularly the impact of loan repayments that have left the ministry with only N57.7 billion for its operations in 2025. He explained that despite these financial constraints, the ministry has prioritized the completion of ongoing dam and irrigation projects aimed at enhancing agricultural productivity and food security.
Prof. Utsev also highlighted plans for collaboration with the private sector through Public-Private Partnership (PPP) arrangements for dam and hydropower projects. Additionally, he mentioned partnerships with international organizations to scale up interventions in sustainable water management and sanitation.
“Given sufficient funding, the ministry believes it can complete viable projects that contribute to job creation, poverty reduction, and overall economic growth,” he added. However, he cautioned that the ministry faces significant challenges due to a limited expenditure ceiling for capital projects and insufficient allocations for day-to-day operations.
As the Senate continues to scrutinize the 2025 budget, the debate surrounding funding for water resources and sanitation underscores the critical need for a balanced approach that ensures essential services are not compromised by the pressure of loan repayments and other financial obligations.
