Group laments FG’s failure to release enough funds for 2024 capital budget

The National Coalition on Accountability and Probity in Governance (NCAPG) has expressed deep concern over the Federal Government’s failure to release funds for the 2024 capital budget.

This delay, the organisation said, has resulted in significant economic challenges, including stalled projects, increased unemployment, and reduced consumer spending.

According to the group, the government’s inability to release capital to contractors has created a ripple effect across various sectors, leading to a decline in economic activity.

Speaking at a press conference on Tuesday in Abuja, its national coordinator, Igwe Ude Umanta, said many businesses, particularly those owed by the government for contracts executed, face severe financial difficulties, including defaulting on loans and laying off workers.

Recall that the Public Accounts Committee of the House of Representatives had last week expressed concern over the low implementation of the capital component of the 2024 budget.

Chairman of the panel, Rep. Bamidele Salam, raised this concern when the Accountant General of the Federation, Mrs Shakirat Madein, appeared before it.

According to the Committee, implementation of the budget was only 25 per cent which it said was not helping the attainment of the desired economic growth of the country.

Umanta however said while the organisation recognised and commended the Federal Government’s efforts to implement policies and reforms aimed at revitalizing our economy, it was evident that much more needs to be done to achieve stability and sustainable growth,

“Apparently, Nigeria’s economy is presently experiencing significant challenges, exacerbated by limited liquidity, and a lack of substantial capital releases to contractors on projects execution.

“It is very unfortunate that this worrisome reality has created a ripple effect across various sectors, leading to reduction in economic activity, largely contributing to stalled projects, and creating a surge in the unemployment ratio.

“Realistically right now, Businesses, particularly those owed by the government for contracts executed, are facing dire straits. Many companies which are unable to recover payments are defaulting on loans, thereby leading to mounting debts, layoffs, and, in some cases, closures.”

He noted that the federal government’s failure to make capital releases to contractors is at the heart of this economic stagnation.

According to him, capital projects are crucial drivers of economic activity, and the absence of funding for ongoing and new projects has led to significant setbacks, putting Capital release as the missing catalyst which is very important to saddle the economy forward.