FG Allocates N743.737Billion For 2023’s Capital Budget

Date:

In a notable move geared towards financial development, the Nigerian Government disbursed a substantial sum of N743.737 Billion for the capital expenditure segment of the 2023 national budget. This disbursement came six months after the budget’s scheduled implementation, which was initially set to commence in January.

During a recent announcement, the Accountant-General of the Federation, Oluwatoyin Sakirat Madein, revealed that the treasury has successfully processed and released a total sum of N743.737 Billion between March and August of 2023, with an additional N487.421 Billion currently in the processing pipeline for September and October 2023.

Nigeria’s 2023 budget designates N5.9 Trillion for capital expenditure, out of an overall expenditure of N21.83 Trillion.

Dr. Madein made this significant disclosure at a one-day capacity-building workshop/seminar held in Abuja, focused on the ‘Implementation of Cash Plan Policy in Nigeria: Prospects and Challenges.’

She elaborated that this disbursement success can be attributed to the Federal Government’s implementation of the bottom-up cash management policy, which was introduced in 2020 alongside a Treasury circular issued on May 29, 2020.

She highlighted the core objective of the policy, stating that the beauty of the plan is to ensure that funds are utilised promptly once released. Speaking further, she said the era of ‘Have they released our capital budget?’ is now past. It is now about ‘Have they funded all our implemented projects?’

Dr. Madein explained that before the policy’s implementation, over N1.5 Trillion was tied up in commitments within the capital development fund for months. This reflected a situation where the genuine cash requirements of government agencies were overlooked during fund disbursements. Consequently, this sluggish approach hindered the effective utilisation of allocated funds, and the government continued to incur interest on borrowed funds for committed projects.

Under the new plan, the expectation is that projects eligible for payment will be promptly settled when all procedural requirements are met. Dr. Madein emphasised that both completed and ongoing projects with interim payment certificates, as well as programs involving personnel BTA, are now eligible for payments.

She stated that the system has been set up in a way that mandates government agencies to compile all outstanding payments due on a monthly basis. These payments will be disbursed once the necessary funds become available.

Dr. Madein also highlighted the introduction of an information technology solution, the GIFMIS cash planning module, which is set to enhance government cash management practices.

In a related matter, Mr. Emem James Kanico, the National President of the Association of Public Procurement Professionals of Nigeria (APPON), voiced concerns about the use of unqualified and untrained personnel in the procurement process within several government agencies. He highlighted the need to restrict non-professional personnel from conducting procurement functions, insisting that this practice has hindered adherence to the Public Procurement Act and other government regulations.

Kanico urged that strict sanctions should be imposed by the President on any government agency found engaging in such practices, asserting that the workshop aims to promote capacity development, integrity, and transparency among procurement professionals.

 

 

 

 

 

 

 

 

 

 

 

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