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N 1 trillion Spent on Recurrent Expenditure in First Half 2012 , Mostly on Subsidy Payments

By on June 15, 2012

The accountant general, John Otunla, disclosed to journalists yesterday that of the N 1.44 trillion in government expenditure in the first six months, N 1.04 trillion was on recurrent expenditure. He also stated that the majority of the recurrent expenditure comprised of fuel subsidy payments.

Minister of Finance, Okonjo Iweala said it was why she called for a slow down into the payments of subsidy to fuel marketers.

Okonjo-Iweala said, “We just slowed down the payments, once we have verified that payments already made are genuine, we will commence payment again. But we will not be stampeded into continuing payments until we are sure of them and that is what the Aig-Imokhuede committee has been mandated to do, and we are expected to have its report in the next one week.

“Once we have verified that the payments we made are genuine, we will feel comfortable to move on ahead, but if they are not, of course, we shall be asking those that are not genuine to repay us whatever money that was not genuinely paid.

“For instance, if we have money paid that was not documented that that payment led to the genuine supply of products, we shall be asking those people to refund to us.”

She disclosed that only N 404 billion had been released to Ministries, Departments and Agencies for capital projects.