Despite 1% Budget Release, Transport Ministry Earns Praise from NASS Committee
Oru Leonard
The Joint Senate and House of Representatives Committee on Land Transport has commended the Federal Ministry of Transportation for its performance in 2025 despite receiving only about one per cent of its approved capital budget.
In a press release signed by the Special Assistant, Media and Publicity to the Honourable Minister of Transportation, Jibril Alkali, the commendation followed the presentation and defence of the Ministry’s 2026 budget proposal by the Minister of Transportation, Senator Said Ahmed Alkali, before the joint committee on Tuesday in Abuja
Chairman of the committee, Senator Adamu Aliero, alongside the co-chair, Rep. Blessing Onyeche Onuh described the Ministry’s performance as impressive given the severe funding constraints and delayed cash backing experienced in the 2025 fiscal year.
“This is apt and forward-thinking. You have secured private-sector funding commitments of about 200 million dollars despite receiving just one per cent of last year’s budget,” Aliero said. “It is a good achievement and a positive outlook for the sector.”
He noted that the 2025 budget performance across key transport agencies was weak due to lack of capital releases, stressing that the Nigerian Institute of Transport Technology (NITT) and the Nigerian Railway Corporation (NRC) received no capital funding, with allocations limited to overheads for maintenance and rehabilitation.
Rep. Onuh described the Minister’s presentation as detailed and explanatory, adding that the committee was already familiar with the budget performance challenges.
She said the joint committee plans to conduct oversight visits to selected projects, including the Kano–Maradi rail line, in March to assess progress firsthand.
She also congratulated the Minister on the approval of the National Transport Policy, describing it as a long-overdue milestone for the sector.
Earlier in his presentation, Senator Alkali explained that the 2026 budget proposal largely consolidates the 2025 Appropriation, with about 70 per cent of projects rolled over into the new fiscal year due to funding constraints and delayed cash backing.
He said the rolled-over items had been reviewed and aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, with emphasis on completing ongoing projects, protecting public investments, and sustaining momentum in the land transport sector.
Among notable achievements, the Minister listed the approval of the National Land Transport Policy 2025 and the proposed De-Sadel Nigeria Limited integrated high-speed rail, power generation and natural gas project, spanning about 4,000 kilometres nationwide under a Design-Build-Finance-Operate-Maintain (DBFOM) model.
He outlined key interventions in the 2026 budget to include the development of modern bus terminals, railway expansion and strategic port connectivity, as well as the continuation of nationally important railway projects under the Nigerian Railway Modernisation Programme.
On budget performance, Alkali said the Ministry recorded about 59 per cent overhead utilisation in 2025, while capital releases stood at roughly one per cent and were largely not cash-backed.
He added that NITT and the Federal University of Transportation, Daura, recorded average overhead utilisation of about 57 per cent with no capital releases, while the NRC posted 58 per cent overhead performance under similar constraints.
The Minister identified major challenges requiring legislative support, including funding gaps affecting large-scale rail projects, vandalism of railway assets, and the need for the speedy passage of the Nigerian Railway Act (Amendment) Bill.
“The Ministry seeks the support of the National Assembly in strengthening legislation, penalties, and enforcement mechanisms to protect critical national transport infrastructure,” he said.
Alkali said the 2026 budget proposal is aimed at consolidating ongoing projects, addressing funding limitations, expanding rail and road infrastructure, decongesting major commercial hubs, and driving economic growth and national integration in line with the Renewed Hope Agenda.
He appealed to the committee for cooperation and legislative approval of the Ministry’s 2026 budget proposal.
