National Assembly Criticizes Poor 2024 Budget Implementation, Demands Increased Capital Project Funding

The National Assembly has expressed deep dissatisfaction with the poor execution of capital projects in the 2024 budget, calling the current state disappointing. Lawmakers voiced concern over the significant gap between recurrent and capital expenditures, highlighting the low capital funding releases for ministries, departments, and agencies (MDAs).

Both the Senate and House of Representatives urged the federal economic team to release more funds for capital projects immediately to ensure citizens benefit from government initiatives. This resolution followed a joint session involving the chairpersons of the Senate and House Committees on Appropriations and the Presidential Economic Team, where Senator Olamilekan Adeola (APC, Ogun West) and Abubakar Bichi presided over the budget review for 2025.

The Finance Minister, Wale Edun, presented a report showing that only 25% of capital expenditure had been implemented compared to 43% for recurrent spending. Senator Adeola emphasized the need to shift budget allocations from the current 80% recurrent and 20% capital ratio to at least 60% recurrent and 40% capital, stressing that capital projects drive economic growth and directly impact citizens’ welfare.

Adeola noted that withholding capital funds could hinder project completion and the success of President Tinubu’s Renewed Hope Agenda. He warned that MDAs defending their 2025 budget without significant 2024 performance would face accountability challenges.

Supporting these points, House Committee Chairman Bichi called for prioritizing capital projects, including schools, roads, hospitals, and other infrastructure, instead of focusing heavily on debt repayment. He argued that excessive recurrent expenditure primarily benefits only about 10% of the population, while capital projects impact over 200 million Nigerians.

Finance Minister Wale Edun acknowledged the concerns and confirmed the pending release of capital funds but emphasized fiscal responsibility to avoid financial crises similar to those in France and Germany. Minister of Budget and Planning, Abubakar Bagudu, added that the large recurrent spending was linked to development challenges, such as security operations supporting agriculture and economic stability.

Dr. Tanimu Yakubu, Director General of the Budget Office, attributed part of the recurrent spending to inherited financial burdens, including unpaid pensions, which the Tinubu administration had addressed. He suggested the possibility of legislative action to cap recurrent spending in future budgets.

The meeting, attended by Minister of State for Finance Dr. Doris Uzoka-Anite and senior ministry officials, also discussed tax waivers and holidays, which were noted to affect government revenue collection.