By Abbanobi -Eku Onyekachi
The National Assembly has raised concerns over the huge discrepancies in the 2024 budget, particularly the low implementation of capital projects.
A joint meeting between the chairmen of Senate and House Committees on Appropriations and the Presidential Economic Team highlighted the need for urgent action to address the issue.
The National Assembly’s concern stems from the report of the economic team, which shows that the overall 2024 budget performance stands at 43%, with recurrent expenditure achieving 100% while capital budget only managed 25% performance ¹. Senator Solomon Adeola, chairman of the Senate Committee on Appropriations, emphasized the need to drastically reduce the ratio of recurrent expenditure to capital in the budget, from the present level of about 80% for recurrent and 20% for capital to at least 60% to 40%.
Adeola stressed that capital projects are a major driver of economic growth and have a direct impact on the people. He noted that the non-release of funds for capital projects is a major issue in the performance of the 2024 budget and urged the Finance Ministry to release funds for capital projects to prevent abandoned projects and ensure the success of the Renewed Hope Agenda of the president.
Honourable Abubakar Birchi, chairman of the House Committee on Appropriations, concurred with Adeola, calling for more releases for capital projects of Ministries, Departments, and Agencies (MDAs) for projects such as schools, roads, dams, hospitals, and other social infrastructure. Birchi argued that debt repayment can be restructured in the interim, emphasizing that capital projects have a direct impact on the majority of Nigerians.
The Minister of Finance confirmed that there are outstanding capital releases awaiting funding, but regretted that the country cannot go back to the old ways of spending money that is not there to avoid backlash. The Minister of Budget and Planning attributed the huge recurrent expenditure to the country’s level of development and societal challenges, while the Director General of the Budget Office attributed it to past legacies inherited by President Bola Ahmed Tinubu.
The meeting also deliberated on issues of waivers and tax holidays, which seem to reduce revenues for the government. The National Assembly has urged the Finance Ministry to release funds for capital projects to prevent abandoned projects and ensure the success of the Renewed Hope Agenda of the president.
