The Federal Government wants to spend the sum of N113 billion for the purchase of vehicles in 2025 according to details of the budget proposal.
While this has raised eyebrows among some Nigerians who described it as needless waste of scarce resources, some others have proposed a more productive way to spend such amount.
A financial expert, Prof. Uche Uwaleke, on his part has urged the Federal Government to divert the N113 billion to infrastructural projects.
Uwaleke, a Professor of Capital Market, is also the the Director, Institute of Capital Market Studies at the Nasarawa State University Keffi.
He gave the advice in an interview with News Agency of Nigeria (NAN) on Friday in Abuja.
He said that he had compiled a list of the 288 government agencies that listed the purchase of vehicles in their 2025 capital budget.
According to him, these motor vehicles are going to be imported and so have implications for the exchange rate.
He said that the CEOs of the agencies should postpone those purchases until 2026.
“The huge amount could be channelled to a project that is geared towards boosting output and reducing inflation and unemployment.
“For instance, the money can be used to commence a Federal Government project, in conjunction with the state governments.
“Such project should be known as ‘One District; One Product (ODOP) project in each of the 109 Senatorial Districts, with each district getting a minimum of N1 billion.
“It can also be used to resuscitate the ‘One Local Government; One Product (OLOP) project, which never made any significant impact due to poor attention,” he said.
He said that in the second scenario, each Local Government Council could get at least N145 million from the funds that would be freed up as a result of deferment of the purchase of vehicles.
“One can equally think of other productive application of any capital capex, such as purchase of vehicles, which is not necessarily developmental in nature.
“Given that their opportunity costs to the economy are high, one way to minimise such is to ensure that only locally made products are involved,” Uwaleke said.
He said that public expenditure should be guided by the principles of maximum social benefit, economy, and value for money.(NAN)
