The National Assembly has raised concerns about the inadequate funding of the capital components in the 2024 budget, describing the situation as a threat to key development projects and economic growth.
Senator Solomon Adeola, chairman of the Senate Committee on Appropriation, and Abubakar Bichi, his counterpart in the House of Representatives, voiced their concerns on Wednesday during a meeting with the presidential economic team, led by Wale Edun, the Minister of Finance.
In December 2024, lawmakers extended the implementation period for the capital components of the 2024 Appropriation Act to June 2025 to accommodate delayed funding and ensure completion of critical projects.
However, recent reports on budget performance indicate that the implementation of capital expenditure stands at a mere 25 percent, compared to a full implementation of recurrent expenditure.
During the meeting, Adeola emphasized the importance of funding capital projects to drive economic activities and improve the lives of ordinary Nigerians.
“Capital releases to MDAs are the major drivers of economic activities within the nation,” Adeola said.
“The non-release of funds for capital projects is a major issue in the performance of the 2024 budget so far. Funds should be released to prevent abandoned projects and ensure the success of the renewed hope agenda of the president.”
Similarly, Bichi highlighted the disproportionate benefits of recurrent expenditure, which he noted only impacts a small fraction of the population.
“Most of the items of recurrent expenditure, which take a huge part of our budget and are implemented 100 percent, will only directly affect about 10 percent of our population,” Bichi said.
“Meanwhile, capital projects of the MDAs will directly affect the majority of over 200 million Nigerians in areas of social infrastructure provisions like hospitals, schools, roads, energy, and similar.”
Wale Edun, presenting the budget performance report, disclosed that overall implementation of the 2024 budget stands at 43 percent.
While recurrent expenditure has achieved full implementation, capital expenditure is significantly lagging, raising concerns about abandoned projects and unmet development goals.
Tanimu Yakubu, Director-General of the Budget Office, attributed the high recurrent expenditure to unpaid pensions and gratuities inherited from the previous administration.
Other key officials at the meeting included Abubakar Bagudu, Minister of Budget, and Doris Uzoka-Anite, Minister of State for Finance.
The lawmakers urged the economic team to prioritize the release of funds for critical capital projects, emphasizing their importance to the welfare of citizens and the nation’s infrastructure.
The lack of sufficient funding, they warned, could hinder the government’s ability to deliver on its promises and derail economic progress.
As the deadline for capital budget implementation draws nearer, all eyes are on the presidency and the finance ministry to ensure that the concerns raised by the National Assembly are addressed.