CSO Criticizes FG for Delayed Capital Releases, Calls for Urgent Action

The National Coalition on Accountability and Probity in Governance (NCAPG) has raised concerns about the Federal Government’s failure to release funds for capital projects in the 2024 budget, warning that this is having serious consequences on the economy.

During a meeting with the presidential economic team on January 8, 2025, both the Senate and House of Representatives committees on appropriation criticized the government for the poor funding of capital projects. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, reported that the overall budget performance for 2024 stood at just 43%, with recurrent expenditure fully met at 100%, while capital expenditure languished at only 25%.

Senator Solomon Adeola, Chairman of the Senate Committee on Appropriation, emphasized the importance of releasing funds for capital projects to avoid abandoned works and support the success of the President’s Renewed Hope Agenda.

In a statement issued by the NCAPG, the group noted the grave impact of these funding delays, which include stalled projects, rising unemployment, and reduced consumer spending. National Coordinator Igwe Ude Umanta pointed out that many businesses, particularly those owed by the government for completed contracts, are struggling with mounting debts and, in some cases, are forced to lay off employees or shut down operations.

“While we acknowledge the government’s efforts to revitalize the economy, it is clear that much more needs to be done,” Umanta said. “The lack of liquidity and the failure to release funds for capital projects have led to a decline in economic activity, exacerbating inflation and unemployment.”

The CSO called on the government to prioritize capital releases, viewing them not just as expenses, but as investments crucial for economic growth and job creation. They also urged the government to establish a transparent repayment plan for contractors and businesses to rebuild trust and boost economic liquidity.

Additionally, NCAPG recommended introducing targeted interventions for Small and Medium Enterprises (SMEs), which play a vital role in Nigeria’s economy. The group also stressed the importance of regular communication with the public to update citizens on the status of economic policies, reforms, and ongoing projects.

While recognizing the government’s fiscal constraints, NCAPG emphasized that the delay in capital funding is at the heart of Nigeria’s current economic stagnation and urged swift action to rectify the situation.