The National Assembly has expressed concerns over the stark imbalance between recurrent and capital expenditure in the 2024 budget, citing insufficient funding for capital projects across Ministries, Departments, and Agencies (MDAs).
This was disclosed during a joint session of the Senate and House Appropriations Committees and the Presidential Economic Team.
Lawmakers revealed that the 2024 budget has achieved only 43% overall performance, with recurrent expenditure at 100% and capital expenditure at just 25%.
Senator Solomon Adeola and Honourable Abubakar Birchi, chairpersons of the respective committees, called for urgent measures to boost funding for capital projects. They emphasised that such projects directly impact the majority of citizens, unlike recurrent expenditures, which primarily benefit a smaller fraction.
Senator Adeola proposed reducing the current 80% allocation for recurrent expenditure to a more balanced 60:40 ratio in favour of capital spending. He stressed the importance of capital projects for economic growth and public welfare and advocated the prompt release of funds to prevent project abandonment, aligning with the president’s Renewed Hope Agenda.
Honourable Birchi echoed these sentiments, urging the government to prioritise critical infrastructure projects like schools, roads, dams, and hospitals, which benefit the broader population rather than focusing on debt repayments.
In response, Finance Minister Wale Edun acknowledged delays in capital fund releases but cautioned against unsustainable spending. He assured that payment warrants are ready once funds are available.
The session, attended by key government officials, also reviewed the impact of tax waivers and holidays on revenue, aiming to improve fiscal policies and budget outcomes.