Army, Navy, Airforce to spend over N647 billion on salaries in 2020

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The estimates in the 2020 Appropriation Bill have shown that the Nigeria Army, Navy and Airforce budgeted to a whopping 91 per cent of their budgets on recurrent expenditure, comprising overhead and personnel costs, while the remaining nine per cent would go to their capital expenditure.

An analysis by of the bill Saturday PUNCH revealed that the chunk of the recurrent expenditure goes into personnel cost, comprising salaries, wages, allowances and social contributions, while a meagre amount goes into capital expenditure, forcing some of the security agencies to make part payments for security items they would have used to fight insecurity.

President Muhammadu Buhari had on Tuesday, October 8, presented the N10.33tn, comprising N4.88tn recurrent expenditure and N2.14tn capital expenditure, Appropriation Bill to a joint session of the National Assembly.

The President noted that the budget estimate was designed to be one of fiscal consolidation to strengthen the macroeconomic environment, invest in critical infrastructure, human capital development and enabling institutions.

But analysis of the Appropriation Bill revealed that the Ministry of Defence, comprising different operational units like the Army, Navy, Air Force, Defence Headquarters, Nigerian Defence Academy, Defence Intelligence Agency and 11 other units got a whopping N878,458,607,427 total allocation, the second highest allocation.

Of the total allocation, however, the recurrent expenditure stood at N778,589,343,660, representing 88.63 per cent while the capital expenditure is N99,869,263,767, representing 11.37 per cent.

In the recurrent expenditure, however, the total personnel cost, comprising salaries, wages, allowances and others, is put at N722,383,830,531bn, while the overhead cost for travels, transport, training, materials and services, is N56,205,513,129.

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The remaining N99bn capital expenditure would, therefore, be used for the purchase of defence equipment, sea boats, rehabilitation of barracks across the six geo-political zones, procurement of ammunition, purchase of operational vehicles, among other things needed to fight insecurity and defend the Nigerian territory.

For example, the Nigerian Army, which got the highest allocation under the Defence Ministry, would get a total of N438.23bn.

While a whopping N424.03bn of the sum goes to recurrent expenditure, comprising N408.40bn for personnel cost (salaries, allowances, wages, etc), and N15.63bn for overhead cost, a meagre N14.20bn was budgeted for capital expenditure.

According to the breakdown in the estimate, the N14bn would be used for the purchase of arms, ammunition, armoured vehicles, spare parts, kitting general, construction of office and residential buildings (barracks) and renovation of destroyed Kur Mohammed Barracks, Bama, among other projects.

Similarly, for the Nigerian Air Force, which got the second highest share in the ministry, its total allocation was N137.87bn.

Out of this, N109.51bn was for recurrent expenditure, comprising N8.85bn overhead cost and a whopping N100.66bn personnel cost (for salaries, wages, allowances, etc), while a paltry N28.36bn is budgeted for capital expenditure.

The N28bn is expected to be used for the purchase of defence equipment, procurement of various small arms and ammunition, purchase of various aircraft and their spares, support equipment and their spares, part payment for procurement of 3 x jf – 17 thunder aircraft, part payment for periodic depot maintenance of 4 x f – 7ni aircraft, among others.

For the Nigerian Navy, which got the third highest share of the ministry’s allocation, the total allocation was N131.69bn, out of which N114.50bn was allocated for recurrent expenditure, comprising N106.76bn personnel cost (salaries, wages, allowances, etc) and N7.74bn overhead cost.

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On the other hand, N17.19bn was budgeted for capital expenditure, specifically for the procurement of helicopters, landing ship tank, hydro survey ship, 8 x 17m inshore patrol craft, construction of barracks and the development of Naval War College, among others.

The tilted estimate is the same for many other operation units, like DIA, under the Defence Ministry.

Meanwhile, for the Federal Ministry of Police Affairs, comprising police formations and commands, the ministry itself and the Nigeria Police Academy, Wudil, Kano, the total allocation is N409,142,271,823.

Of this figure, the capital expenditure is a mere N13,309,986,864, representing a paltry 3.25 per cent, while the total recurrent expenditure is N395,832,284,959, representing a huge 96.75 per cent of the allocation.

Out of the recurrent expenditure, however, the total overhead was N11,088,223,253 while the total personnel cost (salaries, wages, allowances and social contributions) took a whopping N384,744,061,706.

The paltry N13bn capital expenditure, according to the estimate, was for the purchase of security equipment (N2.88bn), motor vehicles, air navigational equipment (N2.19bn), trucks, industrial equipment (N64.82bn), purchase and acquisition of land, computer software acquisition, construction and provision of hospitals, police stations and barracks, while the rehabilitation and repair of police stations and barracks would gulp (N53.62), among other projects.

Thus, on average, the military and police would spend 91 per cent of their budgets on recurrent expenditure, largely salaries, wages and allowances, while about nine per cent would be spent on procuring equipment, weapons and other software and hardware needed to tackle insecurity in the country.

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