FG’s failure to fund 2024 capital budget destroying businesses – Situation Room tells Tinubu

The Economic Situation Room, a coalition of 48 civil society groups in Nigeria, has warned that the Federal Government’s failure to release funds for completed contracts under the 2024 capital budget is having a devastating impact on businesses and the economy.

According to the group, the government’s inaction is crippling businesses, perpetuating hardship among Nigerians and bringing economic activity to a grinding halt.

The group in a statement signed by its national coordinator, Dr. Abraham Attah, lamented that many businesses are on the brink of collapse due to the government’s inability to fulfil its contractual obligations.

Attah noted that the situation is exacerbated by the government’s poor budgeting and lack of transparency, which undermines confidence in the economy.

“We are sounding the alarm on the devastating consequences of the Federal Government’s failure to release funds for completed contracts under the 2024 capital budget,” he stated.

Attach said: “This inaction is not only crippling businesses but also perpetuating hardship among contractors, their staff, and associates. The lack of funds has brought economic activity to a grinding halt, stifling growth and development.

“The situation is dire, with many businesses on the brink of collapse due to the government’s inability to fulfil its contractual obligations. The ripple effects are far-reaching, impacting not only the businesses themselves but also the livelihoods of countless individuals who depend on them.

“The government must take immediate action to address this crisis and prevent further economic devastation. The non-release of funds for completed contracts is having a profound impact on the economy, leading to reduced employment opportunities,