•Says era of paying for unexecuted jobs over •N5trn disbursed in 2022
From Uche Usim, Abuja
The Accountant-General of the Federation (AGF), Mrs Oluwatoyin Madein, on Thursday, disclosed that actual releases for capital projects between January and August stands at N743 billion, while additional N487 billion was being processed for disbursement to pay for completed and duly verified projects.
She said by the time the latter money is eventually released, the total funds for capital projects for this year would be N1.23 trillion.
She noted that the money was a far cry from last year’s N5 trillion that was released, though with a N1 trillion implementation, while the balance was lodged in the accounts of various Ministries, Departments and Agencies (MDAs).
Madein made the disclosures in Abuja in her keynote address at a seminar organised by the Association of Public Procurement Practitioners of Nigeria (APPON) themed: “Implementation of Cash Plan Policy in Nigeria; Prospects and Challenges”.
According to AGF, the era where MDAs got hefty funds for projects yet to be awarded or completed was over, as the cash implementation policy kicks against such a practice that promotes waste and opacity rather than frugality and transparency.
She explained that the Office of the AGF has come up with a bottom-up approach in cash management where MDAs are required to submit their report for completed projects and then request for payment and not getting the funds before the project is awarded.
She said: “The OAGF came up with a bottom-up cash management rule in 2020 as a standard operating practice. This was done in collaboration with OAGF, GIFMIS team and the MDAs.
“By right, MDAs are supposed to upload, on a monthly basis, their projects detailing the status and justifying the need for payment.
Last year, N5 trillion was committed to implementation of projects and was in the hands of MDAs but implementation was N1 trillion.
“But with the bottom-up cash plan approach this year, all the projects carried out and uploaded were paid. N743 billion has been released as at August. N487 is in progress and the two releases come to N1.2 trillion.
“As of this time last year, N5 trillion had been released but implementation was N1 trillion.
“Funds are released as funds are needed. Era of releasing money not needed is over. “On a monthly basis, MDAs are required to gather projects due for payment and upload and processed and paid. “It enhances transparency. It has lots of prospects. No need to pay interest in funds not yet deployed. Implementation and payment are no longer delayed.
“You can draw your funds completely once you’re sure you have completed all your projects. Era of making payments for jobs not awarded is over. Transparency is being deepened”, she explained.
She advised the procurement managers and officers at the event to live above aboard in all they do.
Also speaking, the Chief Host and APPON National President, Emem Akparawa, said the theme of the event was designed to foster cohesion and bring members to speed with cash policies of the federal government.
He hailed the AGF for the support to deepen ethical practices in procurement, assuring that members will continue to make an impact.
In his remarks, APPON FCT Chapter President, Makar Orduen, said the programme was the first ever seminar that seeks to bring members government policies for smooth implementation.
“This Event is holding in collaboration with OAGF and BPP.
“We are procurement officers licensed to engage in procurement at federal and state levels, all geared towards achieving good governance. Our job seeks to ensure value for money, efficiency, development of the economy”, he said.