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November 10, 2010 06:30AM |  print  email   |
The performance of federal capital projects stand at 23.3%, according to figures disclosed by the Minister of Finance, Olusegun Aganga, on Tuesday, before unhappy members of the House of Representatives.
Mr Aganga, who finally made a belated appearance before the lawmakers, fielded questions from members on the dismal performance of the ministries, barely two months to the end of the year. He said funds have been made available, but are not accessed by the ministries. Of the N1.7 trillion total capital budget for 2010, only N749 billion has been released to the Ministries, Departments and Agencies through the Central Bank of Nigeria, Mr Aganga revealed. Of this, the MDAs have only been able to access a meager N396.97billion, representing 44% of the amount released, and 23.35% of the total capital spending plan for the year that is left with barely two months.
Break from norm
Complaints about slow-paced implementation of budgets, a routine among lawmakers, have soared this year ahead of elections next year, and the House, against past rules, summoned the minister to make the clarifications before its plenary. Members have in the past dismissed the level of implementation of the budget and suggested that 30% implementation had been achieved, according to information they obtained from meetings with officials from the executive arm of government. The failures were blamed on dwindling finance, according to the lawmakers, and letters from President Goodluck Jonathan to the National Assembly, in which he requested supplementary budgets.
The lawmakers said other ministers they have spoken to complain of poor release of fund from the government. But Mr Aganga said that the nation had met and even surpassed its revenue targets for the year with a more stable oil supplies. "Our country is doing extremely well," he said. However, while the realized funds have not translated into the expected building of roads, and other infrastructures as appropriated for in the capital budget, 100% of the heavy overhead budgets have been implemented, the minister confirmed. He said funds are withheld from ministries that have not shown sufficient utilization of past releases. The ministers concerned, he said, often blame their failures on prolonged processes of due process.
An emotional session
The minister's appearance, two weeks after the initial invitation, and the feeble delivery-figures released, added no vigour to the questions he faced from lawmakers who had earlier pressed for a warrant of arrest on him for disregarding their summons. A member asked him to state the components of the former President Umaru Yar'adua administration's seven point agenda, while another member clapped for the minister for saying that his ministry held back funds from ministries that have not delivered.
However, every ministry has drawn 100% of its recurrent budget, he said. Bala Na'allh, a member from Kebbi State, raised an instance of a road project in which all overhead funds associated with the contract have been released and used, while funds for the actual construction have been denied. "That shouldn't happen," Mr Aganga said. In spite of the sufficient funds, he said the government still has shortfall from its signature bonds and the sale of NITEL, which is expected to be used for capital projects too. He also said government targets lifting the implementation tally to N900 billion before the year end. "We are still implementing the capital and we have the commitment to implement it," he said. "We are a developing nation, and we cannot depend entirely on budget to fund infrastructure needs of our country."
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