The National Coalition on Accountability and Probity in Governance (NCAPG) has called on the Federal Government to release funds for the 2024 capital budget.
It lamented the delay may lead to significant economic challenges, including stalled projects, increased unemployment and reduced consumer spending.
According to the NCAPG, contractors’ inability to access funds has created a ripple effect across various sectors, leading to a decline in economic activity.
Speaking at a briefing, its national coordinator, Igwe Ude Umanta, said many businesses, particularly those owed by the government for contracts executed, face severe financial difficulties, including defaulting on loans and laying off workers.
“While we recognise 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,” Umanta said.
“Apparently, Nigeria’s economy is presently experiencing significant challenges, exacerbated by limited liquidity, and a lack of substantial capital releases to contractors on projects execution.
“It is very unfortunate that this worrisome reality has created a ripple effect across various sectors, leading to reduction in economic activity, largely contributing to stalled projects, and creating a surge in unemployment ratio.
“Realistically right now, Businesses, particularly those owed by the government for contracts executed, are facing dire straits. Many companies which are unable to recover payments are defaulting on loans, thereby leading to mounting debts, layoffs, and, in some cases, closures.
“Evidently, the Federal Government’s failure to make capital releases to contractors is at the heart of this economic stagnation. Capital projects are crucial drivers of economic activity, and the absence of funding for ongoing and new projects has led to significant setbacks, putting Capital release as missing catalyst which is very important to saddle the economy forward.
“Firstly, it is a pitiable realisation that contractors have been unable to complete critical infrastructure projects, from roads to healthcare facilities, which are vital to national development. Secondly, it is observed that the lack of liquidity in the economy has limited the purchasing power of citizens, further compounding the challenges of inflation and unemployment.
“It Is indeed acknowledged that the federal government is currently grappling with significant fiscal constraints. However, it is imperative for the FG to recognize that capital releases are not merely expenditures—they are investments that stimulate economic growth, create jobs, and improve infrastructure.”
The NCAPG urged the Federal Government to prioritise economic stability and transparency in governance.
The group emphasises that the government must take immediate action to address the nation’s challenges, including prioritizing capital releases to stimulate economic activity and create jobs.
Umanta added that the government should also introduce targeted interventions to support Small and Medium Enterprises (SMEs), which are the backbone of the economy.
Furthermore, the NCAPG recommended that the government develop a clear and transparent repayment plan for contractors and businesses owed by the government.
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This will not only boost liquidity but also rebuild trust between the government and private sector players. Regular communication with citizens is also crucial, providing updates on the status of economic policies, reforms, and projects.
The NCAPG commended President Tinubu-led administration for its efforts to implement policies and reforms but emphasized the need for tangible results.
The group believed that the government can do better and the challenges facing the nation require a renewed sense of urgency and purpose.
The NCAPG called on the economic team to report periodic progress before the implementation of the 2025 budget.
