The National Coalition on Accountability and Probity in Governance (NCAPG) has said that the Federal Government’s failure to release funds for the 2024 capital budget has contributed to the country’s worsening unemployment crisis.
Speaking in Abuja, the group’s National Coordinator, Igwe Umanta, said the federal government’s failure in this direction has not only created ripple effects across various sectors of the economy, leading to a decline in economic activities, but has also resulted in economic challenges like stalled projects, increased unemployment, and reduced consumer spending.
The NCAPG noted that “while we recognize and commend the Federal Government’s efforts to implement policies and reforms aimed at revitalizing our economy, it is evident that much more needs to be done to achieve stability and sustainable growth.
“Apparently, Nigeria’s economy is presently experiencing significant challenges, exacerbated by limited liquidity, and a lack of substantial capital releases to contractors on projects execution.
“It is very unfortunate that this worrisome reality has created a ripple effect across various sectors, leading to reduction in economic activity, largely contributing to stalled projects, and creating a surge in unemployment ratio.
“Realistically right now, Businesses, particularly those owed by the government for contracts executed, are facing dire straits. Many companies which are unable to recover payments are defaulting on loans, thereby leading to mounting debts, layoffs, and, in some cases, closures.
“Evidently, the Federal Government’s failure to make capital releases to contractors is at the heart of this economic stagnation. Capital projects are crucial drivers of economic activity, and the absence of funding for ongoing and new projects has led to significant setbacks, putting Capital release as missing catalyst which is very important to saddle the economy forward.
“Firstly, it is a pitiable realization that contractors have been unable to complete critical infrastructure projects, from roads to healthcare facilities, which are vital to national development. Secondly, it is observed that the lack of liquidity in the economy has limited the purchasing power of citizens, further compounding the challenges of inflation and unemployment.
“It Is indeed acknowledged that the federal government is currently grappling with significant fiscal constraints. However, it is imperative for the FG to recognize that capital releases are not merely expenditures—they are investments that stimulate economic growth, create jobs, and improve infrastructure.”
While urging the Federal Government to prioritise economic stability and transparency in governance, the group emphasised the need for government to take immediate action to address the nation’s challenges, including prioritizing capital releases to stimulate economic activity and create jobs.
Umanta added that the government should also introduce targeted interventions to support Small and Medium Enterprises (SMEs), which are the backbone of the economy.
Furthermore, the NCAPG recommends that the government develop a clear and transparent repayment plan for contractors and businesses owed by the government.
“This will not only boost liquidity but also rebuild trust between the government and private sector players. Regular communication with citizens is also crucial, providing updates on the status of economic policies, reforms, and projects.”
The NCAPG while commending the President Tinubu-led administration for its efforts to implement policies and reforms but emphasized the need for tangible results, expressed optimism that the government could do better and that the challenges facing the nation requires a renewed sense of urgency and purpose.
