An investment analyst, Mahmood DanAudu, has described poor capital budgetary release as an impediment to economic growth
DanAudu alleged that capital releases so far were about 20 per cent, even though the lifetime of the 2024 budget ends in June.
He queried, “How can we have a minister that is comfortable with about 100 per cent releases for the overhead cost and intervention funds but refuses to release funding for capital projects, as a result of which most contractors have abandoned the site? Do we expect to build a virile economy under this scenario?”
He alleged that the Minister of Finance, Wale Edun, has failed woefully in his responsibility to the nation.
DanAudu submitted that those saddled with the responsibility of ensuring budgetary releases are concentrating on areas that benefit them and some people while ignoring the main budget (capital), which benefits all.
Such an act, according to him, is making the APC-led government unpopular, noting that “those doing this are sabotaging the government and may well be working for the opposition”
He also said the Accountant General of not helping matters by failing to advise against starving contractors of funds, with a plethora of projects abandoned. “This non-release of funds has led to many contractors leaving the site, and this will lead to variation and more spending by the government”.
“Because the contractors are not being paid, jobs are not being commissioned. MDAs are grounded. It is only the FCT that is not on TSA that is working. We cannot justify the fact that about two months to the expiration of the 2024 budget calendar, only 20 percent of capital release has been made.
DanAudu said that the non release of funds for the 2024 budget has made many Nigerians to lost hope on government ability to fund the 2025 budget noting “we are tempted to believe that the 2025 budget is not realistic. It’s mere deception and propaganda since we did not achieve more than 20 per cent of the capital vote for the 2024 budget”.
“In spite of devaluation, increase in fuel price and huge borrowing, people are being told that there is no money to fund projects. This is a clear attempt to portray the government in a very bad light. We suspect sabotage,” he added.
Continuing, DanAudu said, “This whole thing is making the government unpopular as a lot of contractors have lost confidence and hence abandoned the site. Residents and other immediate beneficiaries of the projects are disenchanted.
He hinted at plans to sabotage the government’s bottom-up method of payment and urged President Bola Tinubu to “watch the deliberate attempt to sabotage the bottom-up system of payment, which is the best and helps to guard against sharp practices.”
Under the Bottom-up system, payment is initiated from the ministry up to the office of the Accountant General. It guarantees transparency and makes it impossible for anyone to be paid for a job not done.
DanAudu said those trying to circumvent it are not just enemies of the government and the people but are economic saboteurs who should be shown the way out and replaced by persons who will work towards building favorable support for this government as the build-up to the 2027 election intensifies.
“I am appealing to the president to overhaul the leadership of the finance ministry to avoid further damage to the nation,” he added.
ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE