No New Projects Will Be Admitted Into 2021 Budget – FG

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Zainab Ahmed
Federal Minister of Finance, Budget and Planning of Nigeria, Zainab Ahmed.

Federal Government has announced that no new projects will admitted into the capital budget for 2021 as the preparation of budget estimates for the coming year commences.

This was contained in the 2021 Budget Call Circular issued by the Federal Ministry of Finance, Budget and National Planning, Tribune reports.

The circular signed by the minister, Zainab Ahmed, stated that;

The thrust of the FGN’s capital expenditure programme in 2021 will be the completion of as many ongoing projects as possible, rather than starting new projects. Thus, MDAs are hereby advised that new projects will not be admitted into the capital budget for 2021 unless adequate provision has been made for the completion of all.

The circular also stated that there would not be personnel budget for MDAs that are yet to be on the Integrated Personnel and Payroll Information System (IPPIS).

The FG noted;

It is expected that all MDAS have now complied with Presidential directive to enrol on the Integrated Personnel and Payroll Information System (IPPIS). MDAS not vet on IPPIS will not be provided for in the personnel budget for 2021.

On personnel training and travels, the FG said;

MDAs are enjoined to restrict their travels, training and capacity development programmes to locations within the country and as close to their office locations as possible. Foreign travels and training should be limited to exceptional cases, and with necessary approvals in accordance with extant government policy.

The government also hinted that changing vehicles and furniture would not be part of its priorities in the coming year, stressing;

Except where absolutely critical to the functioning of respective MDAs, proposals such as expenditure on vehicles, furnishing, construction/purchase of office or residential buildings and equipping of non-critical offices will not be accommodated in the 2021 budget.

The Federal Government listed stimulating the economy by preventing business collapse and ensuring liquidity and job creation as some of its priorities in the ensuing year.

Other priority areas as contained in the circular are;

Undertaking growth-enhancing and job-creating infrastructural investments in roads, bridges, solar power, and communications technologies; promoting manufacturing and local production at all levels and advocate the use of Made-in-Nigeria goods and services; and extending protection to the poor and other vulnerable groups, including women and persons living with disabilities, through pro-poor spending.

The circular stated further that prominence would be accorded to human capital development, specifically health, education and social inclusion in resource allocation.

The FG advised MDAs to carefully scrutinize and justify their projects for which resources are to be allocated for in line with the immediate needs of the country as well as the government’s development priorities stated in Nigeria Economic Sustainability Plan (NESP).

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