Advanced Search
MyIDEAS: Login

Project Abandonment, Corruption And Recovery Of Unspent Budgeted Public Funds In Nigeria

Contents:

Author Info

  • Richard INGWE

    ()
    (Institute of Public Policy and Administration)

  • Walter A. MBOTO

    (Institute of Public Policy and Administration)

Registered author(s):

    Abstract

    Large amounts of unspent funds budgeted for implementing development projects have been recovered from Nigeria’s public officials since President Yar Adua directed in 2007 that responsible Nigerian Ministries, Departments and Agencies (MDAs) must refund such funds at the end of every fiscal year. While unspent funds recovery represents some progress in the “war on corruption” entrenched by previous governments in the 1980s, the current policy limited by concentrating narrowly on recovery of financial resources thereby excluding accounting for other project resources (human skills application, time management or optimization among others) that are usually applied to project implementation but lost through public officers’ failure and/or delays to implement planned projects. This article examines the magnitude of unspent funds recently recovered by the government from its various ministries, departments and agencies (MDAs). The general objective of this article is to contribute towards improving the development project management culture in Nigeria. The specific objectives are: To highlight the magnitude of unspent funds in Nigeria’s MDAs; and to show some adverse consequences of failing (or delaying) to spend funds allocated in the budget forimplementing projects in economic sectors and on the pursuit of development objectives. Survey and description methods were used. Data on the refund of unspent funds was obtained from secondary sources (records of MDAs) and analysed using qualitative and simple quantitative techniques. Results show that a high rate of projects delay and /or abandonment was discovered shortly after the inauguration of President Yar’ Adua and his administration in May 2007. Although some project funds have been recovered, other project resources (time wasted, human skills/hours) and development benefits that would have accrued from completion of the planned and financed projects have not been recovered but lost. The fact that most of the abandoned and/or delayed projects were to be implemented in key sectors such as electricity (power) supply, construction of roads and other works, petroleum, oil and natural gas development (which forms the major sources of revenue for the Nigerian economy, education, health and so forth), represents huge opportunity losses arising from losses of development benefits and spin-offs that would have accrued from the various economic sectors of Nigeria’s economy. The implication of these findings for policy includes the need to include all project resources in the list of the recovery and resource accounting effort of the government’s anti-corruption programme.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.revecon.ro/articles/2012-1/2012-1-2.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

    Volume (Year): 34 (2012(XXII))
    Issue (Month): 1(43) (June)
    Pages: 24-46

    as in new window
    Handle: RePEc:ine:journl:v:1:y:2012:i:43:p:24-46

    Contact details of provider:
    Postal: Casa Academiei, Calea 13 Septembrie nr.13, sector 5, Bucureşti 761172
    Phone: 004 021 318.24.67
    Fax: 004 021 318.24.67
    Email:
    Web page: http://www.ien.ro/
    More information through EDIRC

    Related research

    Keywords: unspent funds; budget; opportunity losses; anti-corruption; infrastructure; accountability;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:1:y:2012:i:43:p:24-46. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentina Vasile).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.