The National Coalition on Accountability and Probity in Governance (NCAPG) has urged the Federal Government to urgently release funds for ongoing and planned capital projects, across Nigeria.
The group emphasised that this would enable contractors to complete projects on time, create jobs, and stimulate economic activity.
This was disclosed by the group’s National Coordinator, Igwe Ude Umanta, during a press conference on Tuesday.
He noted that while the Federal Government’s plans to implement policies and reforms aimed at revitalising the nation’s economy are commendable, the country is allegedly currently facing significant challenges, exacerbated by limited liquidity and a lack of substantial capital releases for project execution.
Urgent Steps to Restore Public Confidence
According to Umanta, poor funding of capital projects by the Federal Government has allegedly caused a ripple effect across various sectors, reducing economic activity, stalling projects, and increasing unemployment rates.
“On this note, we believe that to address these challenges and restore public confidence, the Federal Government must take the following actions:
“ The government must urgently release funds for ongoing and planned capital projects. This will provide contractors with the resources needed to complete projects, create jobs, and stimulate economic activity.
“The FG should introduce targeted interventions to support SMEs, which are the backbone of the economy. These interventions could include access to affordable credit, tax incentives, and grants to help businesses recover and thrive.
“ The FG must create a clear and transparent repayment plan for contractors and businesses owed by the government. This will boost liquidity and rebuild trust between the government and private sector players.
“The government should improve its communication with citizens by providing regular updates on the status of economic policies, reforms, and projects. Transparency is key to building trust and fostering public confidence.
“ Mechanisms for monitoring and evaluating capital projects must be strengthened to ensure that funds are utilised effectively and that projects are completed on time and within budget. This will attract more investors and boost their confidence,” he added.
The group also called on the Federal Government to address the challenges of delayed capital flows to assist entrepreneurs and lay the groundwork for long-term growth and prosperity.
What You Should Know
Nairametrics previously reported that the Federal Government plans to allocate a significant portion of its budget to debt servicing between 2025 and 2027, surpassing allocations for capital expenditures.
- This projection is based on the recently approved 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, which estimates debt servicing costs at N50.39 trillion over three years, exceeding the N48.93 trillion earmarked for capital expenditures.
- Four weeks ago, the National Assembly approved an extension of the 2024 budget’s lifespan to June 2025. This move ensures continuity in fiscal operations and the seamless execution of key government projects.
- The announcement was made by the Senate President, Godswill Akpabio, during a joint sitting of the National Assembly for the presentation of the 2025 budget proposal by President Bola Tinubu.
- The extension of the 2024 budget to mid-2025 is viewed as a strategic move to accommodate the government’s ambitious reform agenda and provide flexibility in implementing ongoing projects.
Analysts believe the extension will help the government achieve its economic goals while mitigating challenges posed by delayed project implementation and fiscal bottlenecks.