The Nigerian Senate has expressed concern over the Federal Government’s implementation of the 2024 budget’s capital component, calling for increased efforts to ensure Ministries, Departments, and Agencies (MDAs) effectively execute the budget.
During a recent Senate Committee on Appropriation hearing, Chairman Senator Solomon Adeola highlighted the need for better funding of capital projects across the three concurrent national budgets. The committee met with Finance Minister Wale Edun and Accountant General Oluwatoyin Madein to discuss budget performance.
Key points from the hearing:
- Capital Expenditure Shortfall:
- Only N1.84 billion was spent out of the N9 trillion allocated.
- The committee emphasises the importance of visible government projects.
- MDA Engagement:
- Some agencies are unaware of the new payment processes.
- The Finance Ministry was urged to improve communication with MDAs.
- Oil production targets:
- NNPCL assures 2 million barrels per day of capacity.
- Questions raised about the previous 1.2 million barrel output
- Future Scrutiny:
- Planned public hearing on NNPC operations
- Focus on refinery investments and local production.
- Budget Performance:
- 100% release of the 2023 supplementary budget is praised.
- Main 2023 budget implementation is lagging by over 50%.
- Finance Minister’s Updates:
- Progress on the N30 trillion Ways and Means investigation
- Delay in electric and CNG vehicle rollouts due to freight costs
- $700 million paid in debt services
The Senate committee stressed the importance of capital projects in showcasing government performance and urged the Finance Ministry to intensify monitoring of revenue-generating agencies.
This hearing underscores the ongoing challenges in Nigeria’s budget implementation and the government’s efforts to address fiscal concerns amidst economic pressures.