Capital releases will nolonger be automatic-Udo-Udoma

Minister of Budget and National Planning,
Senator. Udoma Udo-Udoma, says capital
releases will no longer be automatic as they will
depend on Ministries, Departments and Agencies
(MDAs) meeting performance indicators.
Udo-Udoma stated this at 2016 Annual Public
Lecture of the Nigerian Economic Society (NES)
on Tuesday in Abuja.
He said that the ministry had developed a robust
monitoring and evaluation framework for effective
monitoring of 2016 budget.
“We believe that with all these measures, we will
succeed in turning the economic crisis into an
opportunity to restructure and reposition our
economy for growth and prosperity.
“In this way, we will deliver the economic
change we promised Nigerians,’’ the minister
said.

Udo-Udoma said that the 2016 budget was
designed to help in the amelioration of some
economic challenges in the country.
“It signals the determination of the
administration to create a diversified economy
that is no longer dependent on crude oil
proceeds.
“The budget, which has outlay of N6.06 trillion
and capital expenditure of N1.79 trillion (29 per
cent of total budget), is aimed at reflating the
economy.
“It is also aimed at creating jobs for our
teeming youths as well as supporting the
vulnerable groups,’’ he said.
The minister, however, said that the
administration was committed to strengthening
the link between its plans and budgeting
processes to ensure better implementation of its
projects and programmes.
“We are committed to inclusive development
which explains the unprecedented allocations of
N500 billion to social investment projects in the
2016 Budget of Change,’’ he said.
Earlier, President of NES, Prof. Ben Aigbokhan
said in the 1960s up to mid-1980s, there was
deliberate effort to make plans serve as guide to
development programmes and policies.
Aigbokhan said that there was visible link
between plans and annual budget, noting that it
was the era which held much prospects for
Nigeria migrating from third to first world group
within two decades.
“The period from mid-1980s to early 2000s
witnessed the weakening and eventual
disconnect between plans and budgets.
“Attempts to return to the link led to the design
of the NEEDS and Vision 20:2020 development
documents.
“But each of these have suffered weak
implementation despite the promises they held,’’
he said.
The don, however, said that the development
problem since mid-1980s, therefore, had been
one of non-budget and national link, non-
implementation of plan and low rate of budget
implementation.
“Perhaps, no other single indicators
demonstrated this than the disproportionate
allocation to recurrent expenditure relative to
allocation to capital expenditure.
“If Nigeria is to regain lost ground, we need to
return to planning linked to budget preparation
and implementation.
“NES saw some inclinations towards this new
administration and, therefore, decided to assist
in this direction by holding this lecture to
generate ideas that would enhance the
realisation of the objective,’’ he said.
The topic of the lecture was entitled, “Strengthen
Budget – Plan Link for Inclusive Development in
Nigeria.’’
The lecture was delivered by Prof. Mike Obadan
of University of Benin Foundation for Education
and Development.