Stakeholders in the Nigerian financial sector have commended the Federal Government for releasing N300 billion for capital projects in the third quarter of 2012.
Speaking in separate interviews in Lagos, the stakeholders said the release of the fund will help bring about an increase in economic activities, among others.
Mr Eddie Osarenkhoe, a former President, Finance Houses Association of Nigeria (FHAN), described the decision as a right step that would boost cash flow in the economy.
Osarenkhoe explained that it would trigger numerous capital projects which would generate economic activities. He said that it would also facilitate the implementation of 2012 budget, stressing that the budget’s poor implementation in the first half of 2012 was due to lack of funds for the ministries to execute projects.
He, however, advised the government to ensure that the money allocated for specific capital project was spent judiciously. “The ability of government to properly monitor the funds will further lead to growth in the economy,” he said.
Mr Wole Olowu, General Manager, True Bond Micro Finance Bank Limited, Lagos, corroborated Osarenkhoe’s view as he commended the release of the money.
Olowu said that if the fund was effectively utilised, it would revamp the infrastructure deficit and have multiplier effect on the economy.
According to him, there would be more roads, potable water and adequate power supply, which would attract foreign investors into the country.
Olowu held that ineffective monitoring of budget implementation could negate the objectives of building infrastructure.
“The government should work toward ensuring that the money does not go to individual pockets,” he said.
He urged the government to ensure the money was spent on capital projects it was meant for so as to have positive impact on the life of the people.
Mr Ayodeji Fagbenle, General Manager, Cash Craft Assets Management Limited, Lagos, urged the government to tackle leakages in the economy. He however, contended that allocating more funds for capital projects would boost national development.
Dr. Ngozi Okonjo-Iweala, Minister for Finance, had announced the release of N300 billion for the third of 2012 budget last week.