Don advises FG to spend more on capital expenditure

A don, Dr Chris Ekong, on Sunday advised the Federal Government to spend more on capital expenditure rather than recurrent in order to reduce the cost of governance in Nigeria.

The lecturer in the Economics Department of University of Uyo gave the advice at the 2015 Annual Feast of Barracuda Lecture held at Ekid Civic Centre in Eket, Akwa Ibom.

The forum was organised by the National Association of Seadogs (NAS), Atlantic Shores, Eket chapter.

The theme of the event was ‘Reducing Cost of Governance as a Panacea for Strengthening the Nigerian Economy.’

According to Ekong, capital projects in a developing country ought to constitute the significant proportion of its total expenditure to lay the foundation for economic growth and sustainable development.

Ekong noted that money provided for recurrent expenditure should be used for savings or expenditure on capital goods.

“If cost of running government is reduced, more funds will be freed for other purposes. If expenditure is not made, such funds can be invested or saved.

“If government intends to increase capital expenditure in order to create wealth it has to reduce recurrent and save such funds for investment,” Ekong said.

Ekong said that the current state of the country’s economy could be partly linked to the pattern of expenditure.

The don listed some sectoral expenditure needed to strengthen the economy to include infrastructure, education, health, agriculture, transportation and maritime investment.

To further reduce the cost of governance, he called for an end to funding of religious pilgrimages, stopping waivers on imports and removal of oil subsidy.

Others, he said, are stopping money laundering by government officials through firm actions against perpetrators, checking contract over-invoicing and stopping expansion of public employment.

Ekong also advocated the reduction in the number aides of political officers.

The association’s president in Eket, Mr Benjamin Roberts, said that the group was not only celebrating the feat of Barracuda but seeking the way forward for the nation.

He noted that the theme of the programme was apt and instructive as the country faces dire economic realities.