The Joint Senate and House of Representatives Committee on Land Transport has praised the Federal Ministry of Transportation for its 2025 performance, despite receiving only about one per cent of its approved capital budget.
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 in Abuja on Tuesday.
Chairman of the committee, Senator Adamu Aliero, and Co-Chairman, Rep. Blessing Onyeche Onuh, described the Ministry’s performance as commendable given the severe funding constraints and delayed cash backing that characterised the 2025 fiscal year.
Aliero noted that key transport agencies recorded weak capital performance due to the absence of releases, revealing that the Nigerian Institute of Transport Technology (NITT) and the Nigerian Railway Corporation (NRC) received no capital funding, with allocations limited to overhead costs for maintenance and rehabilitation.
Despite the constraints, he applauded the Ministry for securing about $200 million in private-sector funding commitments, describing the move as forward-thinking and a positive signal for the sector.
Rep. Onuh said the Minister’s presentation was detailed and transparent, adding that the committee was already aware of the funding challenges affecting implementation. She disclosed that the joint committee would embark on oversight visits in March, including to the Kano–Maradi rail project, to assess progress.
She also congratulated the Minister on the approval of the National Transport Policy, describing it as a significant milestone for the sector.
In his presentation, Alkali said the 2026 budget proposal largely consolidates the 2025 appropriation, with about 70 per cent of projects rolled over due to funding shortfalls and delayed cash backing.
He explained that the projects had been reviewed and aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, with priority placed on completing ongoing initiatives and safeguarding public investments.
Among key achievements in 2025, the Minister highlighted the approval of the National Land Transport Policy 2025 and progress on 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 priorities in the 2026 budget to include railway expansion, development of modern bus terminals, improved port connectivity, and continued implementation of 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. 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 conditions.
The Minister identified key challenges requiring legislative support, including funding gaps for large-scale rail projects, vandalism of railway infrastructure, and the need for speedy passage of the Nigerian Railway Act (Amendment) Bill.
He appealed to the National Assembly to strengthen legislation and enforcement mechanisms to protect critical transport infrastructure and to approve the Ministry’s 2026 budget proposal, which he said is designed to consolidate ongoing projects, expand transport infrastructure, ease congestion in major commercial hubs, and drive economic growth in line with the Renewed Hope Agenda.