The Federal Government of Nigeria’s funding of the capital project in the 2024 budget has been severely criticized by the National Assembly.
This is even as the legislative arm frowned at the meager 25 per cent implementation of capital expenditure in the budget while the recurrent expenditure recorded a 100% implementation.
Solomon Adeola, Chairman of the Senate Committee on Appropriation, and Abubakar Bichi, his House of Representatives counterpart, expressed their reservations on Wednesday during a meeting with the presidential economic team led by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
In December 2024, the national assembly passed a bill seeking to extend the implementation of the capital components of the 2024 Appropriation Act to June 2025.
The minister said the recurrent expenditure achieved 100 percent implementation, while capital expenditure stands at 25 percent.
Expressing disappointment over the inadequate funding of the budget’s capital component, Adeola and Bichi told the minister to ensure funds are urgently released for the projects that directly impact citizens.
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The lawmakers said the recurrent expenditure, which has achieved 100 percent implementation, only benefits an insignificant part of the population.
“Capital releases to MDAs are the major drivers of economic activities within the nation,” Adeola said.
“The non-release of funds for capital projects is a major issue in the performance of the 2024 budget so far. Funds should be released to prevent abandoned projects and ensure the success of the renewed hope agenda of the president.”
Also, Bichi called for the release of funds for capital projects such as schools, roads, dams, hospitals, and other social infrastructure instead of such items as debt repayment.
“Most of the items of recurrent expenditure, which take a huge part of our budget and are implemented 100 percent will only directly affect about 10 percent of our population, while capital projects of the MDAs will directly affect the majority of over 200 million Nigerians in areas of social infrastructure provisions like hospitals, schools, roads, energy, and similar,” he said.
Tanimu Yakubu, Director-General of the budget office, attributed the “high” recurrent expenditure to the alleged unpaid pensions and gratuities inherited from the previous government.
By: Babajide Okeowo
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