The Situation Room Explains Why the Federal Government of Nigeria Should Prioritize the Release of Funds for Completed Projects in the 2025 Budget
The Economic Situation Room explained that the Federal Government of
Nigeria should prioritize the release of funds for completed contracts in
the 2025 budget in order to avert widespread economic
decline. According to the coalition of 48 civil society organizations,
this action is necessary to mitigate the devastating impact that the
failure to release funds under the 2024 capital budget has had on
businesses, livelihoods, and overall economic activity. The group
emphasized that honoring contractual obligations is essential to restore
confidence, foster economic stability, and prevent the collapse of
numerous enterprises dependent on government payments.
In a statement signed by its national coordinator, Dr. Abraham Attah, the Situation Room highlighted the economic damage resulting from the government’s inaction. Many businesses that successfully executed government projects have been left in financial ruin due to the non-payment of funds owed to them. The delay in disbursing these funds has not only stifled business growth but also exacerbated poverty and unemployment. Contractors, their employees, and associated supply chains have been particularly hard-hit, leading to a ripple effect of economic hardship that has spread far beyond the initial beneficiaries of government contracts.
The coalition further explained that the absence of timely payments has disrupted economic planning and created a climate of uncertainty and unpredictability. Businesses are unable to forecast revenue or plan future investments, a situation that deters both domestic and foreign investors. This instability also stifles innovation and limits opportunities for expansion in key sectors that are vital for national development. Without a predictable and supportive fiscal environment, economic progress is severely hindered, the group warned.
The Situation Room attributed part of the problem to poor budgeting practices and a lack of fiscal transparency within the government. These systemic issues undermine public trust in Nigeria’s economic management and discourage private sector participation. Dr. Attah stated that addressing these challenges in the upcoming budget cycle is imperative. He urged the government to allocate sufficient resources to pay for completed projects as a top priority in the 2025 budget. According to the group, this is not merely a fiscal responsibility but a necessity for sustaining economic momentum and preventing long-term damage to the business environment.
The organization also pointed out that the government’s failure to meet its financial obligations perpetuates a negative precedent of unpredictability and irresponsibility in public finance management. This situation threatens to normalize a culture of neglect where businesses and contractors suffer undue financial losses due to government inefficiency. Such conditions discourage entrepreneurs and create a hostile economic environment that impedes national growth.
To avert further economic fallout, the coalition appealed directly to President Bola Tinubu to take decisive action. It recommended that he instruct the Minister of Finance and the Accountant General of the Federation to immediately release funds for all completed projects under the 2024 capital budget. The group reiterated that fulfilling these obligations is a matter of economic justice and governance responsibility that cannot be deferred without grave consequences.
In a statement signed by its national coordinator, Dr. Abraham Attah, the Situation Room highlighted the economic damage resulting from the government’s inaction. Many businesses that successfully executed government projects have been left in financial ruin due to the non-payment of funds owed to them. The delay in disbursing these funds has not only stifled business growth but also exacerbated poverty and unemployment. Contractors, their employees, and associated supply chains have been particularly hard-hit, leading to a ripple effect of economic hardship that has spread far beyond the initial beneficiaries of government contracts.
The coalition further explained that the absence of timely payments has disrupted economic planning and created a climate of uncertainty and unpredictability. Businesses are unable to forecast revenue or plan future investments, a situation that deters both domestic and foreign investors. This instability also stifles innovation and limits opportunities for expansion in key sectors that are vital for national development. Without a predictable and supportive fiscal environment, economic progress is severely hindered, the group warned.
The Situation Room attributed part of the problem to poor budgeting practices and a lack of fiscal transparency within the government. These systemic issues undermine public trust in Nigeria’s economic management and discourage private sector participation. Dr. Attah stated that addressing these challenges in the upcoming budget cycle is imperative. He urged the government to allocate sufficient resources to pay for completed projects as a top priority in the 2025 budget. According to the group, this is not merely a fiscal responsibility but a necessity for sustaining economic momentum and preventing long-term damage to the business environment.
The organization also pointed out that the government’s failure to meet its financial obligations perpetuates a negative precedent of unpredictability and irresponsibility in public finance management. This situation threatens to normalize a culture of neglect where businesses and contractors suffer undue financial losses due to government inefficiency. Such conditions discourage entrepreneurs and create a hostile economic environment that impedes national growth.
To avert further economic fallout, the coalition appealed directly to President Bola Tinubu to take decisive action. It recommended that he instruct the Minister of Finance and the Accountant General of the Federation to immediately release funds for all completed projects under the 2024 capital budget. The group reiterated that fulfilling these obligations is a matter of economic justice and governance responsibility that cannot be deferred without grave consequences.
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