Capital Projects Take Backseat as Petroleum Ministry Allocates N44.172 Billion to Personnel, Overhead Costs, With Only 13.29% for Infrastructure

A detailed examination of the 2024 Appropriation Bill has revealed that the Federal Ministry of Petroleum Resources plans to allocate over 86 percent of its budget to personnel and overhead costs. The total budget for the ministry stands at N44.172 billion, with a mere N5.872 billion, or 13.29 percent, earmarked for capital expenditure.

Surprisingly, the Petroleum Resources Ministry, which oversees only two agencies, the Petroleum Training Institute in Warri and the Nigerian Nuclear Regulatory Authority, faces a conspicuous absence of budgets for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in the Federal Budget.

A closer look at the budget breakdown reveals that the Ministry’s head office will receive N9.64 billion, out of which N5.39 billion is allocated for capital expenditure, while personnel and overhead costs account for N4.25 billion.

The Petroleum Training Institute emerges as a significant recipient, with an allocation of N18.76 billion. Notably, the lion’s share of N18.5 billion is directed towards personnel and overhead costs, leaving a modest N245.9 million for capital projects.

Similarly, the Nigerian Nuclear Regulatory Authority sees a total allocation of N15.77 billion. However, capital expenditure receives a meager N228.36 million, as the majority of the allocation, N15.5 billion, is allocated to personnel and overhead costs.

These budgetary decisions raise questions about the Ministry’s strategic allocation priorities and the potential impact on critical capital projects within the petroleum sector.