The Nigerian Senate has raised serious concerns about the proposed N40 billion loan deduction in the 2025 budget, warning that it could severely affect the Ministry of Water Resources’ ability to provide clean water to the citizens. This deduction, as outlined in the 2025 budget proposal, is seen as a major obstacle to the Ministry’s water projects, which are vital for millions of Nigerians.
During the budget defense session held in Abuja, the Senate Committee on Water Resources and Sanitation expressed disappointment over the Ministry’s financial situation. The Chairman of the Committee, Senator Kenneth Chukwuemeka Eze, pointed out that focusing on loan repayments instead of investing in critical water infrastructure would only leave the Ministry struggling to fulfill its responsibilities. He questioned how the Ministry would manage to meet its objectives if a significant portion of its budget was dedicated to paying off loans rather than improving water access across the country.
The Minister of Water Resources, Prof. Joseph Utsev, explained that the Ministry was already facing challenges due to loan repayments that had already consumed a large portion of its funds. As a result, the Ministry was left with only N57.7 billion to cover its operations for the year. The Minister added that the 2025 budget proposal gives priority to ongoing dam and irrigation projects, which are crucial for improving agricultural productivity and ensuring food security in Nigeria.
Despite the plans to collaborate with the private sector through Public-Private Partnerships (PPP) for dam and hydropower projects, and partnerships with international organizations for sustainable water management and sanitation, the Ministry continues to face financial challenges. Prof. Utsev stressed that without adequate funding, the Ministry would struggle to complete essential projects, which could also hinder job creation, poverty reduction, and overall economic growth.
The Senate has therefore urged the government to reconsider the impact of the proposed loan deduction on the water sector. With sufficient funds, the Ministry could fulfill its mission of providing water to every Nigerian, contributing to the country’s long-term development goals.
