Finance Minister, Ngozi Okonjo Iweala
Stakeholders in the financial service sector have applauded the Federal Government for releasing N300 billion for capital projects in the third quarter of 2012.
In separate interviews with the News Agency of Nigeria (NAN) in Lagos, they described the decision as a right step that would boost cash flow in the economy.
A former President, Finance Houses Association of Nigeria (FHAN), Eddie 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.
According to him, "The ability of government to properly monitor the funds will further lead to growth in the economy.’’
On his part, General Manager, True Bond Micro Finance Bank Limited, Lagos, Wole Olowu, also commended the release of the fund.
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, he added, should work toward ensuring that the money does not go to individual pockets.
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.
The General Manager, Cash Craft Assets Management Limited, Ayodeji Fagbenle, urged the government to tackle leakages in the economy.
Fagbenle, however, contended that allocating more funds for capital projects would boost national development.
The Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, announced the release of N300 billion for the third of 2012 budget last week, at a media briefing in Abuja.