The Nigerian Government disbursed a substantial N1.23 trillion to 17 ministries for capital projects in the third quarter of 2023, according to the Budget Implementation Report for Q3 2023, released by the Budget Office on Sunday. This significant expenditure represents 75.4 percent of the N5 trillion allocated for capital expenditure in the 2023 budget.
According a to a report by Daily Post, from the N1.23 trillion cash-backed in the referenced period, Ministries, Departments, and Agencies (MDAs) utilized N962.87 billion. This allocation underscores the government's commitment to infrastructure development and economic growth.
The Ministry of Defence received the highest allocation for capital projects, with a cash backing of N189.39 billion. Of this, it utilized N180.69 billion, leaving a balance of N9.3 billion. This substantial funding aligns with the government's priority of strengthening national security and defense capabilities.
Following closely, the Ministry of Works and Housing was allocated N178.62 billion, of which it utilized N118.65 billion, leaving a balance of N57.97 billion. This allocation reflects the government's focus on improving the country's infrastructure, particularly in the housing and road sectors.
The release of funds to MDAs for capital expenditure as of the third quarter of 2023 was executed in tranches, based on the availability of resources and government priorities. Data from the Office of the Accountant General of the Federation (OAGF) on 2023 capital performance for MDAs, as of September 30, 2023, detailed the tranche disbursements.
The sum of N351 billion was released as the first tranche, N331.92 billion as the second tranche, and N208 billion as the third tranche. Additionally, N75.35 billion was released as Allocation in Expenditure (AIEs) for MDAs Budget, and N261 billion as AIEs for Service-Wide votes. These structured releases ensured that funds were allocated efficiently and in line with the government's fiscal policies.
It is noteworthy that the former President, Muhammadu Buhari, signed the N21.83 trillion 2023 budget in January 2023. This budget was designed to address key areas of national development, including security, infrastructure, education, and health, aiming to propel Nigeria towards sustainable growth and development.
The Ministry of Defence's allocation highlights the government's dedication to maintaining national security and addressing various security challenges in the country. The utilization of N180.69 billion by the Ministry indicates a robust deployment of resources towards enhancing military capabilities and ensuring the safety of citizens.
In the Ministry of Works and Housing, the notable allocation and utilization underline the ongoing efforts to improve infrastructure. With N118.65 billion utilized, various road projects and housing initiatives are expected to benefit, contributing to economic activities and improved living standards.
The tranches' disbursement strategy indicates a structured approach to capital expenditure, ensuring that funds are released based on project readiness and priority. This method helps in avoiding unnecessary delays and ensures that projects are completed within the stipulated timelines.
The Budget Office's report also highlights the government's efforts to ensure transparency and accountability in public spending. By providing detailed information on fund disbursement and utilization, the government aims to build public trust and ensure that funds are used effectively for intended purposes.
The notable funds allocated for capital projects also reflect the government's recognition of infrastructure development as a key driver of economic growth. Improved infrastructure facilitates trade, enhances productivity, and attracts investments, contributing to overall national development.