Group Reacts Over Tinubu's Govt Failure To Release Funds For 2024 Capital Budget
- NCAPG highlights the economic strain caused by the Federal Government’s delay in releasing funds for the 2024 capital budget
- NCAPG said the delay is hurting businesses, especially contractors, causing defaults, layoffs, and hindering critical infrastructure projects
- NCAPG urges the government to prioritize capital releases, support SMEs, and implement a transparent repayment plan to restore economic stability
The National Coalition on Accountability and Probity in Governance (NCAPG) has voiced concerns over the Federal Government’s failure to release funds for the 2024 capital budget.
A statement made available to Legit.ng on Tuesday, Janaury 14, noted that this is a delay that is causing significant economic strain.
Source: Original
Coalition speaks on economic impact of delayed capital releases
According to the NCAPG, the lack of funds for capital projects is directly impacting the nation's economy, contributing to stalled projects, rising unemployment, and reduced consumer spending.
The coalition argued that this has led to a ripple effect across various sectors, exacerbating existing economic challenges.
Igwe Ude Umanta, who signed the statement outlined the gravity of the situation, saying:
"While we recognize and commend the Federal Government’s efforts to implement policies and reforms aimed at revitalizing our economy, it is evident that much more needs to be done to achieve stability and sustainable growth."
He further emphasized that the delay in capital release is hurting businesses, particularly contractors who are owed by the government.
"Businesses are facing dire straits, many defaulting on loans, laying off workers, or even closing their doors," he added.
Stalled Projects and Economic Stagnation
Umanta underscored that contractors, unable to access the needed funds, have struggled to complete essential infrastructure projects such as roads and healthcare facilities, which are critical to national development.
"The lack of capital releases is at the heart of the economic stagnation we're seeing. Infrastructure development is a major driver of economic growth, and without funding, we are seeing setbacks that are detrimental to the country’s development," he stated.
He also noted that the economic challenges have led to decreased purchasing power among citizens, exacerbating inflation and contributing to rising unemployment rates.
Call for Immediate Action
The NCAPG urged the federal government to prioritize economic stability and transparency in governance, calling for immediate measures to address the nation's economic challenges.
Umanta highlighted the importance of prioritizing capital releases to stimulate economic activity and job creation.
"Capital releases are not just expenditures; they are investments that foster growth and infrastructure development," he emphasized.
In addition, the group called for targeted interventions to support Small and Medium Enterprises (SMEs), which it considers the backbone of the economy.
The NCAPG also recommended that the government create a clear and transparent repayment plan for contractors and businesses owed by the government.
"This will boost liquidity, restore confidence in the system, and rebuild trust between the government and the private sector," Umanta stated.
Despite acknowledging the fiscal challenges faced by the government, the NCAPG urged Tinubu and the economic team to act with a sense of urgency.
NASS to extend 2024 budget cycle
Previously, Legit.ng reported that the National Assembly will on Wednesday, December 18 extend the 2024 budget cycle.
The Chairman of the Senate Committee on Capital Markets and Institutions, Osita Izunaso (APC, Imo West), made this known.
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Source: Legit.ng
