The Financial Scenario Room, a coalition of 48 civil society teams in Nigeria, has warned that the Federal Authorities’s failure to launch funds for accomplished contracts beneath the 2024 capital funds is having a devastating impression on companies and the economic system.
In accordance with the group, the federal government’s inaction is crippling companies, perpetuating hardship amongst Nigerians and bringing financial exercise to a grinding halt.
The group in an announcement signed by its nationwide coordinator, Dr. Abraham Attah, lamented that many companies are on the point of collapse as a result of authorities’s incapacity to fulfil its contractual obligations.
Attah famous that the scenario is exacerbated by the federal government’s poor budgeting and lack of transparency, which undermines confidence within the economic system.
“We’re sounding the alarm on the devastating penalties of the Federal Authorities’s failure to launch funds for accomplished contracts beneath the 2024 capital funds,” he said.
Connect stated: “This inaction isn’t solely crippling companies but additionally perpetuating hardship amongst contractors, their workers, and associates. The shortage of funds has introduced financial exercise to a grinding halt, stifling development and improvement.
“The scenario is dire, with many companies on the point of collapse as a result of authorities’s incapacity to fulfil its contractual obligations. The ripple results are far-reaching, impacting not solely the companies themselves but additionally the livelihoods of numerous people who rely upon them.
“The federal government should take speedy motion to handle this disaster and stop additional financial devastation. The non-release of funds for accomplished contracts is having a profound impression on the economic system, resulting in diminished employment alternatives, elevated poverty, and a decline in financial exercise.
“That is exacerbated by the federal government’s poor budgeting and lack of transparency, which undermines confidence within the economic system. The proposed 2025 funds should prioritize the discharge of funds for accomplished contracts beneath the 2024 capital funds to forestall additional financial harm.
“Moreover, the federal government’s inaction is perpetuating a tradition of uncertainty and unpredictability, making it difficult for companies to plan for the longer term. This uncertainty is deterring funding, stifling innovation, and hindering financial progress.
“It’s important that the federal government takes a proactive method to addressing this disaster and offering a steady and supportive atmosphere for companies to thrive.”
The Financial Scenario Room, subsequently, urged President Bola Tinubu to intervene instantly and direct the Finance Minister and the Accountant Normal of the Federation to launch the mandatory funds for accomplished contracts.
The group emphasised that the federal government should take duty for its contractual obligations and be certain that companies will not be unfairly penalised for its inaction.
