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Mixed reactions trail FG’s release of N200bn capital vote

By BusinessNews Staff on July 2, 2014

A cross section of Nigerians yesterday urged the federal government to re-examine its management of the economy, especially the application of national capital votes.

The mixed reactions followed the federal government’s recent release of the N200 billion capital votes.

They stated in separate interview with the New Agency of Nigeria (NAN) in Lagos that the release of the money came too late in the year.

The immediate past President, Association of Stock Broking Houses of Nigeria (ASHON), Alhaji Rasheed Yusuf said the release of the funds towards the end of the first half of the year was unhealthy for the economy.

Yusuf said that the delay in the release of the funds would adversely affect the execution of projects earmarked for completion in the second quarter.
He also said that the delay could cause inflationary pressure if used for the payment of salaries of workers in ministries, departments and agencies (MDAs).

Also, Mr. Stephen Jagun of the Nigerian Institute of Estate Surveyors and Valuers (NIESV), Lagos Chapter noted that Nigeria should adopt a long-term budget implementation approach.

“I think Nigeria should imitate other developing countries that embark on long-term capital projects.

“I don’t think Nigeria’s January to December release of funds will help, it delays projects unnecessarily while people have to wait endlessly,” he said.
On his part, the Chairman, Port Consultative Council (PCC), Chief Kunle Folarin said the delay in the release of capital votes would adversely affect capital projects.

He said it would be difficult to accomplish the projected development programmes of government.

“We all know the challenges of building funds in Nigeria today, our release from oil and gas, Customs and other areas of fund generation have been affected,” he said.

But the Executive Secretary, Nigerian Association of Small Scale Enterprises (NASME), Mr Eke Ubiji said the time the fund was released was not as important as how it would be utilised.

He urged the federal government to pay attention to the implementation of the projects outlined for the second quarter.

He also stressed the need for government to build durable infrastructure, including electricity which had not been in favour of business ventures in the country.

Ubiji said that the federal government should endeavour to push out the capital votes promptly from subsequent years.

However, the Chairman, Nigerian Institute of Building (NIOB), Lagos Chapter, Mr Asimiyu Bashir lauded the federal government over the release of the fund.

[This Day]

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