The Minister of Finance, Budget and National Planning, Zainab Ahmed, has revealed that the Federal Government achieved 89% launch of the capital part of the 2020 funds to Ministries, Departments and Agencies (MDAs) as of December 2020.
She mentioned that the 89% capital funding for MDAs was achieved with the discharge of N1.74 trillion.
According to a report by the News Agency of Nigeria (NAN), this disclosure was made by Ahmed at an interactive session with the management of the National Assembly on Monday, February 22, 2021.
She additionally revealed that the federal government had disbursed N118.37 billion for Covid-19 capital expenditure from the fund.
What the Minister for Finance is saying
Ahmed mentioned the Nigerian economic system confronted critical challenges in 2020, with the macroeconomic setting considerably disrupted by the Covid-19 pandemic.
She mentioned this led to a 65% drop in projected internet 2020 authorities revenues from the oil and gasoline sector, which adversely affected international trade inflows into the economic system.
On the delayed launch of funds to implement the 2020 capital funds till March 31, the Minister mentioned the grievance had decreased.
She mentioned, “I think the complaint was earlier in the year when we were trying to transfer the balances. As far as I know, in the past three weeks, I haven’t heard any such complaints and we have been able to address them.
“But when we started the transfers, we couldn’t transfer to some agencies because of some limitations in the system, but we have since been able to transfer the capital component that is being utilised by the agencies budget to the system.”
While mentioning that the implementation of the MDAs tasks was tied to procurement processes and capability of the MDA, Ahmed additionally mentioned the extension of the 2020 capital funds implementation to March 31 had recorded 30% efficiency as at January.
However, Ahmed mentioned that she anticipated that the extension would file 100% efficiency in March.
Speaking through the interplay, the Senate’s Chief Whip, Senator Orji-Uzor Kalu, counseled the Minister on the capital efficiency of the 2020 funds.
He mentioned, “I wish to commend the minister and her group as a result of that is the primary time within the historical past of Nigeria that by December 31, we’re having 89% efficiency expenditure of the funds. It has by no means occurred earlier than; Last 12 months was the very first.
“The funds had been going 49%, 27%; this implies from what the Senate President was asking, it means by March, we must be taking a look at implementing the funds 100%.’’
Earlier, President of the Senate, Ahmad Lawan mentioned the assembly was to get an replace on the capital implementation of the 2020 funds given its extension for implementation by the nationwide meeting to March 31.
What this implies
- The 89% capital launch for the 2020 funds as of December 2020 is sort of encouraging because it occurred regardless of the financial challenges and disruption attributable to the outbreak of the coronavirus pandemic.
- There appears to be an improved effort by the Federal Government on the budgeting course of with the early passage of the 2021 funds and the implementation of the capital part of the 2020 funds.