An investment analyst, Mahmood DanAudu, has lamented poor release of fund for capital project, insisting that it poses serious threat to economic development.
DanAudu who claimed that releases for overhead cost and intervention funds for the 2024 budget are 100 per cent, alleged that capital releases so far was about 20 per cent even though the lifetime of the 2024 budget ends in June.
“How can we have a minister that is comfortable with about 100 per cent releases for the overhead cost and intervention funds but refused to release funding for capital project as a result of which most contractors have abandoned site? Do we expect to build a virile economy under this scenario?”
He said poor implementation of the budget by the federal government is creating bad image for the present administration.
DanAudu alleged that those saddled with the responsibility of ensuring budgetary releases are concentrating on areas that benefits them and some people while ignoring the main budget (capital) which benefits all.
He noted that such act was making the APC led government unpopular, noting “those doing this are sabotaging the government and may well be working for the opposition”
He accused the Accountant General of not helping matters by failing to advise against starving contractors of funds with pletheora of projects abandoned.
“This non release of funds has led to many contractors leaving site, and this will lead to variation and more spending by the government.
“Because contractors are not being paid,jobs are not being commissioned. MDAs are grounded. It is only 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, ” he said.
He 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 their is no money to fund projects. This is 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 alot of contractors have lost confidence and hence abandoned site. Residents and other immediate beneficiaries of the projects are disenchanted.
He hinted of plans to sabotage the government’s bottom-up method of payment and urged President Tinubu to “watch the deliberate attempt to sabotage the bottom up system of payment which is the best and help to guard against sharp practices” .