No more payments for pending projects, says AGF

The Accountant General of the Federation (AGF), Mrs. Oluwatoyin Madein, has announced a significant shift in the government’s financial policies. She stated that moving forward, no payments will be made for projects that have not been officially awarded. This announcement was made during a one-day capacity-building program titled “Implementation of the Cash Plan Policy in Nigeria: Prospects and Challenges.”

Mrs. Madein emphasized that projects not included in the official procurement plan will face significant challenges in terms of implementation. This decision is aimed at preventing the government from struggling to secure funds at the beginning of the year, only to continue paying interest on funds that remain unused.

As of August, the AGF revealed that N743.737 billion had been released for capital projects, and an additional N487.421 billion was being processed for September and October 2023. However, a total of N1.2 trillion has already been released for capital projects across the country. When comparing these figures to the same period in 2022, it becomes evident that N5 trillion had been released in the previous year, with actual implementation falling below N1 trillion.

To ensure that capital budget releases are efficiently utilized, Mrs. Madein stressed that only projects that have been implemented will receive funding from the Federal Government. This shift in policy will alleviate the uncertainty that had previously surrounded capital budget releases.

Mrs. Madein clarified that capital projects eligible for government funding do not need to be fully completed. Ongoing projects with established milestones and interim payment certificates will still be considered for funding.

The AGF also addressed issues related to personnel movement and the payment of Duty Tour Allowances within the capital budget. These programs will be honored for payment once approved.

In summary, the AGF’s new policy focuses on ensuring that only awarded projects are eligible for payments, which will promote the efficient utilization of funds and prevent unnecessary interest payments on unused capital. Procurement officers are encouraged to embrace this policy to streamline the government’s financial processes and reduce wastage. Mrs. Madein emphasized that this approach will bring about a positive change in how government funds are allocated and spent.