The Senate has scored the executive low in the implementation of the capital component of the 2024 budget, saying there is a need for the government to get Ministries, Department and Agencies of the Federal Government to implement the budget.
The Senate on Wednesday also urged the Federal Government to intensify efforts in funding the capital components of the three national budgets which are running concurrently in the country.
The Chairman of the Senate Committee on Appropriation, Senator Solomon Adeola, gave the task when the Minister of Finance, Wale Edun and the Accountant General of the Federation, Oluwatoyin Madein, appeared before the panel over the budget performances.
Adeola lamented the poor funding of the capital components of the budgets and urged the Coordinating Minister for the Economy to improve on it.
Adeola said, “It is the capital component of the budgets that will showcase this government largely in terms of performances.
“The capital components tend to showcase various projects that will be executed by this government and people can say, oh, the government is doing this, it’s doing that. That is why we are emphasising the performance of the 2024 capital component of the project.”
Adeola added, “The N1.84bn achieved so far out of a N9tn capital expenditure component is nothing to write home about.
“I would want you to please look towards this direction. And I want you to do more engagement with the ministries and departments and agencies of the government.”
Adeola urged the minister to engage more with the MDAs because most of them were not aware of the current arrangement regarding funding of capital projects.
He said, “I tell you for free, some agencies will tell you that they have not been given any money for capital when we are fully aware that the process of payment of capital has changed.
“That shows a lot of engagement has to go on from time to time to bring it to their notice that you are no longer in charge of payment to contractors.
“I want you to please do a kind of continuous engagement. It will help so that everybody can come to terms that the system has changed.”
He added, “Everything about the method of payment, and method of business has changed. I would say that. Coming back to the NNPCL, we make it known that we have been assured of two million barrels.
“Long before now, we have been on 1.2 million barrels over this period. So that shows that we now have a capacity of two million barrels. Why is it now the NNPCL is assuring us of two million barrels?”
The Senate panel chairman also hinted at plans by the red chamber to organise a public hearing on the NNPC where stakeholders in the oil and gas sector would be invited including the Finance Minister.
He said, “We will soon bring everyone in that industry, the NNPC, the upstream and downstream to the table because there are a lot of reports that we have concerning that which the Senate in no distant future will invite everybody.
“The minister of finance too might be invited to let us know what is happening in our oil and gas sector.
“They have promised to deliver on our refineries for the last couple of months, billions of dollars have been expended and nothing to show for it.
“The local producers have not been encouraged, the local refineries have not been encouraged. No progress has been made in this direction. So all this and more is what we look into in the future.”
Adeola nevertheless commended the minister for achieving 100 per cent funding of the 2023 supplementary budgets.
He said, “We did the supplementary budget, which we have achieved 100% release, which is highly commendable.