Udoma – Capital Releases Strictly Based On Performance, Exigency | Independent Newspapers Limited
Newsletter subscribe


Udoma – Capital Releases Strictly Based On Performance, Exigency

Posted: Jul 20, 2016 at 6:27 am   /   by   /   comments (0)

The release of capital votes in the annual budget for ministries, departments and agencies (MDAs) will be based strictly on performance and necessity, an official of the Ministry of Budget and National Planning, has said.

The official, Mr. James Akpandem, Media Adviser to the Minister, Sen. Udoma Udo Udoma, made the statement on Tuesday in Abuja in an interview with the News Agency of Nigeria (NAN) in Abuja.

Akpandem recalled that Udoma had recently announced that release of capital votes would no longer be automatic but on MDAs meeting performance indicators.

He said that respective MDAs were expected to list their priority projects for a given period with timelines for implementation which would include costing and target completion period.

“On this basis, evaluation is made and the Finance Ministry is subsequently advised to release funds for the period based on such projections from the originating MDA.

“It will also be based on satisfactory evaluation report from the Monitoring and Evaluation Department of the Ministry of Budget and National Planning,” he said.

2016 budget, which has outlay of N6.06 trillion and capital expenditure of N1.79 trillion (29 percent of total budget), is aimed at reflating the economy.

Akpandem said that the policy was basically to ensure that monies released are judiciously used for the purpose for which they are meant.

He added that it was also to track progress and ensure that projects are promptly and properly delivered.

“As it was clearly stated by the minister during the presentation of the 2016 budget analysis to the public, the respective MDAs will have to submit progress reports periodically to the ministry.

“They will also submit quarterly reports for Federal Executive Council assessment.

“Such reports, apart from those from the Monitoring and Evaluation Committee, will also provide the basis for assessing progress as well as determining performance levels,” he said.

Akpandem said that government had started releasing money for capital projects according to the proposals received from MDAs and clearance mandates given to the Ministry of Finance for disbursement.

“Releases are supposed to be made quarterly but not automatic in the sense that funds will no longer be released as a matter of course,” he said.