Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

“We Are Starting Late”: Why 2016 Capex Budget Has Failed Already

Nairametrics by Nairametrics
May 7, 2016
in Business News, Spotlight
“We Are Starting Late”: Why 2016 Capex Budget Has Failed Already
Share on FacebookShare on TwitterShare on Linkedin

The Federal Government is already making excuses just hours after President Buhari signed the 2016 Budget. The Budget Minister Senator Udo Udoma disclosed to mainstream news reports that it will not be possible for the government to fully implement the 2016 budget.

“Our aim is 100 percent implementation because the budget is a law that must be implemented. But the reality is that we may not achieve this because we are starting late,” Udo Udoma

The Buhari led government has often been accused of making excuses after excuses rather than rolling up its sleeves and getting to work. With about 7 and a half months left to go till the end of the year, Nigerians will be wondering why they cannot fully implement a budget that they claim will stimulate the economy. The government earmarked about N1.8 trillion on capital expenditure in the current budget and many Nigerians will be waiting for a full implementation of its budgetary plans.

Unfortunately, this is not the first time that government officials will be failing to fully implement capital expenditure (even though they fully implement recurrent expenditure). In an article featured in Nairametrics a few years ago, we highlighted how Nigeria has failed to meet up 100% capital expenditure (see chart below).

RelatedPosts

LinkedIn Local Lagos set to hold the third edition

Atiku pledges to give states power to generate, transmit and distribute electricity if elected president

Capex Budget vs Actual

Back in 2014, former Finance Minister Ngozi Okonjo Iweala also attempted to explain why they could not fully implement budgetary allocation for capital expenditure.

“ In the third quarter we could not cash back a N100 billion of third quarter capital and we have not been able to release fourth quarter capital.Nevertheless, we have managed to keep most of our priority projects going with the support of SURE-P resources. Of the N1.12 trillion in the budget for capital, the sum of N610 billion has been released but we were only able to cash back 465 billion of this amount. And about 84 per cent has been used by MDAs as at the end of October.”

With the latest admission that the budget might not be fully implemented, we have little faith that it will bring the kind of success Nigeria expects. There are also a lot of reasons why this is plausible. For example, the government hasn’t yet figured out how it is going to raise enough cash to pay for recurrent expenditure (which is loves to implement) let alone capital expenditure. Various options have been put forward, however none is cast in stone as the preferred funding option. Considering that cash is not yet in place to fund much of the capex budget it probably will take them months more to secure any major external funding.

The current government has also shown itself to be quite sloppy and slow in executing programs and projects so we do not believe that they will execute some of their plans even if cash becomes available. As things stand the capex budget is already a failure and only time will confirm.

Related

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • LinkedIn Local Lagos set to hold the third edition
    • Atiku pledges to give states power to generate, transmit and distribute electricity if elected president
    • FG asks Google to remove Maxi Credit, Here4U, ChaCha, SoftPay loan apps from Play Store

    Follow us on social media:

    Recent News

    LinkedIn Local Lagos set to hold the third edition

    LinkedIn Local Lagos set to hold the third edition

    August 19, 2022
    Atiku pledges recruitment of more security personnel, provide adequate equipment if elected

    Atiku pledges to give states power to generate, transmit and distribute electricity if elected president

    August 19, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com