Politics

Senate criticizes executive for inadequate execution of 2024 budget

By Emmanuel Saviour The Senate has expressed dissatisfaction with the executive branch over the poor implementation of the capital component of the 2024 budget. During a session on Wednesday, the Senate called on the Federal Government to intensify efforts in funding the capital components of the three national budgets running concurrently in the country. Chairman…

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By Emmanuel Saviour

The Senate has expressed dissatisfaction with the executive branch over the poor implementation of the capital component of the 2024 budget.

During a session on Wednesday, the Senate called on the Federal Government to intensify efforts in funding the capital components of the three national budgets running concurrently in the country.

Chairman of the Senate Committee on Appropriation, Senator Solomon Adeola, conveyed the Senate’s concerns when the Minister of Finance, Wale Edun, and the Accountant General of the Federation, Oluwatoyin Madein, appeared before the panel. “It is the capital component of the budgets that will showcase this government largely in terms of performances,” Adeola said. He emphasized the significance of the capital components in demonstrating the government’s achievements through various projects.

Adeola criticized the inadequate funding of the capital components and urged the Coordinating Minister for the Economy to address this issue. He highlighted that only N1.84 billion out of a N9 trillion capital expenditure component had been achieved so far. “The N1.84bn achieved so far out of a N9tn capital expenditure component is nothing to write home about,” Adeola remarked. He called for increased engagement with the ministries, departments, and agencies (MDAs) to ensure proper funding and implementation.

Adeola pointed out that many MDAs were unaware of the current arrangement regarding the funding of capital projects. “Some agencies will tell you that they have not been given any money for capital when we are fully aware that the process of payment of capital has changed,” he noted. He stressed the need for continuous engagement to ensure that MDAs are informed about the new payment systems and their roles in the process. “Everything about the method of payment and method of business has changed. I would say that. Coming back to the NNPCL, we make it known that we have been assured of two million barrels,” Adeola added.

The Senate panel chairman also hinted at plans to organize a public hearing on the Nigerian National Petroleum Corporation (NNPC), inviting stakeholders in the oil and gas sector, including the Finance Minister. “We will soon bring everyone in that industry, the NNPC, the upstream and downstream to the table because there are a lot of reports that we have concerning that,” Adeola mentioned.

Despite the criticisms, Adeola commended the Minister of Finance for achieving 100 percent funding of the 2023 supplementary budgets. He suggested that the ministry provide periodic reports on the implementation levels of the agencies. “It will not be out of place for you to have a periodic report on the implementation level of these agencies so that at least you can be guided,” Adeola recommended. He also called for continuous efforts to improve the implementation of the main 2023 budget, which is lagging by over 50 percent.

In response, Finance Minister Wale Edun assured the Senate of ongoing efforts to improve budget implementation. Edun mentioned that the Federal Government had made progress in its forensic investigation into the N30 trillion ways and means. He also addressed issues related to the procurement of electric and CNG vehicles, stating that high freight costs had delayed progress. “The procurement of electric and CNG buses and conversion kits has been held up by a spike in the freight costs,” Edun explained.

On debt payments, Edun reported, “We have paid $700 million in debt services for 420 national development agencies and others.” He pledged that his ministry would intensify efforts in monitoring revenue-generating agencies and ensure all debts are serviced. “We are also interrogating the revenues that are due to us from everybody because we need to. The view of the fact that ways and means are going down rather than up,” Edun added.

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