He Federal Capital Territory Administration (FCTA) plans to spend N15 billion to build a new residence for the vice president despite the poor state of the country’s economy.
FCT Minister Nysom Wike disclosed this on Wednesday while defending the FCT 2023 supplementary budget of N61.5 billion before the House of Representatives FCT Committee.
President Bola Tinubu on Tuesday transmitted the N67 billion supplementary budget to the National Assembly for approval.
The planned construction of the new residence comes despite the allocation of another N2.5 billion for the renovation of the current vice president’s residence in the federal government supplementary budget recently approved by the National Assembly and signed by President Bola Tinubu.
Wike informed lawmakers that the construction of a new residence for the vice president was approved in 2010 by the Federal Executive Council (FEC) at a cost of N7 billion but the project was abandoned.
He revealed that the current administration decided to start the project and the contractor revised it up to N15 billion.
To kick-start the project, Wike proposes in the 2023 FCT supplementary budget to spend N5 billion.
The project is titled: “Design and Construction of Vice President’s Residence at a Cost of N5 Billion.”
“The VP residency that was granted in 2010 at a cost of N7 billion was abandoned. It is shameful that a country of this nature cannot complete the residence of the vice president in 13 years. 7 billion naira, now the contractor says well, we can’t keep doing it without a review. Now they say 15 billion naira. We have taken it upon ourselves to say that we will complete it and Mr. President will commission it in May,” he said.
Residence worthy of VP
When lawmakers raised questions about the planned expenditure, Wike said the project was designed to give the vice president “a dignified residence.”
“The current residence was built by the military: the Casa Aguda. Then the government said look, we want to build a more dignified residence for the vice president, and that was in 2010.
“The contract was awarded at a cost of N7 billion. It is exactly the same as what we are building for the presidents of the National Assembly: you can see that it has been abandoned due to lack of funding. We believe that we are going to incorporate it into our own statutory budget. Let’s finish it even if they don’t want to use it.
“We are not renewing. “It is a new project that was approved in 2010. We are saying that we should be able to finish it and we will put it into operation in May 2024,” he said.
Other allocations for VP residency in FG supplemental budget
In addition to the allocation for the renovation of the VP residence in the FG supplementary budget signed by President Tinubu, there is another N3 billion for the renovation of the VP residence in Lagos State.
The current administration seems interested in spending enormous amounts of money for the comfort of the president and vice president.
In the FG supplementary budget, the government will spend N8 billion on the President’s two official residences in Abuja and Lagos.
In addition to residences, the supplemental budget also includes billions for the purchase of cars for the Villa and the First Lady’s office.
The government’s spending plan generated negative reactions from Nigerians, who criticized the government for being insensitive.
Most Nigerians are struggling with the rising cost of living due to the government’s economic reforms, particularly the removal of fuel subsidy.
Amid the difficulties, the government seems to prioritize the comfort of the president and his vice president.
President Tinubu and some senior officials in his administration have repeatedly asked Nigerians to be patient.
2.8 billion naira in advertising
Meanwhile, Mr Wike also proposes in the FCT supplementary budget to spend N2.8 billion on FCTA advertising.
The initial budget of the FCT had N60 million for advertisements and publicity.
Explaining the need for the huge sum to lawmakers, Wike said the FCTA is releasing vital information that would generate money for the territory.
“If you look at advertising and advertisements, N60 million was allocated but it was increased to N2.8 billion. Some people would ask: why is it N2.8 billion? You use money to make money.
“When I joined, we realized that most people don’t pay land rent. For example, we publish those requesting CofO for massive developments. “We have obtained presidential approval to decertify the CofO,” he said.
Income sources
According to the estimate presented by the minister, the FCT obtained N25.7 billion from the Paris Club refund, N14.3 billion from IPPIS/PAYE tax liabilities and N5 billion from the special intervention fund.
Others are internally generated revenue of N9.4 billion and the infrastructure support fund of N7 billion.
The minister proposed N12.9 billion as general expenditure and N48.6 billion as capital component of the budget.