The Economic Situation Room, a coalition of 48 civil society groups in Nigeria, has warned that the Federal Government’s failure to release funds for completed contracts under the 2024 capital budget is having a devastating impact on businesses and the economy.
According to the group, the government’s inaction is crippling businesses, perpetuating hardship among Nigerians and bringing economic activity to a grinding halt.
In a statement signed by its national coordinator, Dr. Abraham Attah, the group lamented that many businesses are on the brink of collapse due to the government’s inability to fulfil its contractual obligations.
Attah noted that the situation is exacerbated by the government’s poor budgeting and lack of transparency, which undermines confidence in the economy.
“We are sounding the alarm on the devastating consequences of the Federal Government’s failure to release funds for completed contracts under the 2024 capital budget,” he added.
“This inaction is not only crippling businesses but also perpetuating hardship among contractors, their staff, and associates. The lack of funds has brought economic activity to a grinding halt, stifling growth and development.
“The situation is dire, with many businesses on the brink of collapse due to the government’s inability to fulfil its contractual obligations. The ripple effects are far-reaching, impacting not only the businesses themselves but also the livelihoods of countless individuals who depend on them.
“The government must take immediate action to address this crisis and prevent further economic devastation. The non-release of funds for completed contracts is having a profound impact on the economy, leading to reduced employment opportunities, increased poverty, and a decline in economic activity.
“This is exacerbated by the government’s poor budgeting and lack of transparency, which undermines confidence in the economy. The proposed 2025 budget must prioritize the release of funds for completed contracts under the 2024 capital budget to prevent further economic damage.
“Furthermore, the government’s inaction is perpetuating a culture of uncertainty and unpredictability, making it challenging for businesses to plan for the future. This uncertainty is deterring investment, stifling innovation, and hindering economic progress.
“It is essential that the government takes a proactive approach to addressing this crisis and providing a stable and supportive environment for businesses to thrive.”
The Economic Situation Room, therefore, urged President Bola Tinubu to intervene immediately and direct the Finance Minister and the Accountant General of the Federation to release the necessary funds for completed contracts.
The group emphasised that the government must take responsibility for its contractual obligations and ensure that businesses are not unfairly penalised for its inaction.
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