2025 Budget: Senate Flags N40bn Loan Deduction as Threat to Water Sustainability

2025 Budget: Senate Flags N40bn Loan Deduction as Threat to Water Sustainability-OXYGIST

The Nigerian Senate has raised concerns over the proposed N40 billion deduction for multilateral and bilateral loan repayments in the 2025 budget of the Federal Ministry of Water Resources and Sanitation. Lawmakers argue that the deduction could undermine the ministry’s ability to provide essential water services to Nigerians.


This concern was voiced during the ministry’s 2025 budget defense on Wednesday in Abuja. Appearing before the Senate Committee on Water Resources and Sanitation, the Minister of Water Resources, Prof. Joseph Utsev, detailed the financial challenges facing the ministry.


The committee, chaired by Senator Kenneth Chukwuemeka Eze, expressed alarm over the impact of the loan repayments on the ministry’s budget. Senator Eze questioned the rationale behind prioritizing loan servicing over critical water provision projects.


“What happened to the projections for 2025 when loan repayments have consumed a significant portion of the budget?” he asked, emphasizing the need for a more balanced allocation to address pressing water sustainability issues.


Committee members also highlighted the devastating effects of erosion nationwide, describing it as a dual economic and social catastrophe that demands urgent attention in the 2025 budget.


During his presentation, Prof. Utsev explained that loan repayments deducted at source had left the ministry with a mere N57.7 billion for its activities. Despite the financial constraints, he outlined the ministry’s priorities for 2025, which include completing ongoing dam and irrigation projects to boost agricultural productivity and enhance food security.


The minister also emphasized plans to leverage Public-Private Partnerships (PPPs) for dam and hydropower projects and collaborate with international organizations to scale up sustainable water management and sanitation initiatives.


“With adequate monetary allocations, we can complete viable projects that contribute to job creation, poverty reduction, and overall economic growth,” Prof. Utsev stated. However, he acknowledged the ministry’s challenges, including a limited expenditure ceiling for capital projects and insufficient overhead allocations to manage day-to-day operations. 

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