YNaija Editorial: The urgent need for clarity on Federal Government’s capital expenditure

The 2016 budget process was fraught with delays and controversy, as the late appointment of ministers ensured that the budget was not signed into law until three weeks to the Buhari administration’s first year in office. The budget padding debacle that has overshadowed the recess of the House of Representatives, has also cast the 2016 budget in even more unflattering light.

Since the passing of that budget, the administration has said over and over that it will focus on capital projects as a means to boost the economy. Last week, Finance Minister Kemi Adeosun announced the release of N350 billion for capital projects in the 2016 budget, and it is the second such release after N420 billion was released earlier in the year. That will bring the total amount disbursed to N770 billion, nearly half of the N1.59 trillion committed to capital expenditure.

There is no doubt that properly conceived and executed capital projects have the ability to jumpstart economic growth, and are sorely needed by Nigeria in all areas, from power to roads to bridges. These projects can connect the country and power the economy.

However, as of this moment there is no clarity on what projects have been funded so far, and which are next in line, especially in light of the revenue constraints that are yet to ease.

This lack of openness is harmful for at least three reasons.

First, it excludes the electorate from being a part of the process. It is much harder for concerned citizens to monitor federal projects in their area. The result is that the trust deficit between the government and the people continues to widen. Merely saying that a certain amount has been ‘released’ is not enough. Nigerians want you to show, not tell.

Second, such secrecy enables corruption to thrive. The monitoring of federal projects is not something that can be done effectively by the federal government alone, no matter how hard they try. With more eyes, more oversight is possible. An anti-corruption fight is not just about seizing assets and locking people up. Sunlight is the best disinfectant.

Third, this lack of openness goes against the administration’s own rhetoric of change. President Buhari launched a ‘Change Begins With Me’ campaign ten days ago, and this is an opportunity for the government to show that it is walking its talk. Rather than treat those it is elected to serve as enemies, it should treat them as partners in progress.

Historically, the Nigerian government has always preferred secrecy, but if this administration is taking its own advice, the Finance Ministry will release the full list of projects funded from the first and second tranches of capital spending along with the amount spent on each.

To do any less is to continue the same old behaviour of previous administrations, and open up the government to more avoidable controversy.

One comment

  1. Comment:fayose and co are our bigest problem

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