A total of 93.2 billion was allocated for soft projects in the recently approved 2022 budget, Dataphyte analysis has shown.
Soft projects are projects which are complex in nature and whose output is not well defined. Soft projects achieve result output that is intangible and not measurable as such it’s impossible to evaluate the result and output.
Thus, as the output is not clearly defined, it creates a loophole in the transparency and accountability of the projects especially given MDAs tendency towards illegal practices as captured in the Auditor-general’s report. Soft projects open room for corrupt practices where such funds will be released but the project won’t be executed. And due to the nature of the projects, the output will be difficult to measure and trace.
According to project categories, a total of 93.2 billion will be spent on soft projects out of a total aggregate expenditure of 17.13 trillion naira budgeted for 2022. Such soft projects as identified in the budget include training, purchase, and distribution of items, gifting of goods, and cash handouts, grants, entrepreneurship etc.
A total of 80.6 billion naira has been allocated to training, grants and entrepreneurship takes up a total of 2.7 billion naira and 9.9 billion naira respectively out of the total allocation for soft projects. The 80.6 billion was allocated for 879 training projects to train individuals in various entrepreneurship fields with different ministries, departments, and agencies. Grants is the fund created for entrepreneurs to finance their various entrepreneurship ventures. Entrepreneurship consists of projects to train, empower, and provide equipment to youths and women.
In a country like Nigeria that struggles with transparency and accountability, expenditures such as these kinds of soft projects with intangible outputs are cause for concern. The auditor-general’s report flagged many MDAs for expenditure on things like training for which MDAs failed to provide evidence. Monies can easily be embezzled or diverted for personal reasons.
According to a Dataphyte report on the 2021 constituency projects, opacity has been the issue trailing the Zonal Intervention Program (ZIP) in the country where over 65% of them are soft projects. This serious concern was raised in a review of the performance of ZIP and its contribution to grassroots development despite gulping over N10 trillion in 10 years.
According to Prof. Bolaji Owasanoye, the ICPC Chairman, diversion of funds is a common outcome and the reason why most sponsors prefer soft projects is because of how difficult it is to track them. Stating that in most soft projects, there are usually a number of ghost beneficiaries.
Similar issues have trailed the execution of soft projects across the country. These projects range from market money schemes to COVID-19 disbursements.
With over N93 billion allocated to soft projects in the 2022 budget, the issues of accountability and transparency are again front and center. Strict adherence to the provisions of the Fiscal Responsibility Act, 2007 as well as compliance with the recommendations of the auditor-general’s report are some of the ways to mitigate underperformance of the country’s stretched finances and enure measurable development outcomes for citizens.