A government project is allocated a budget of ₦500 million. Due to corruption, 12 % of the budget is siphoned off by officials, and a further 8 % of the remaining amount is lost through inflated procurement costs. Each million naira that remains can deliver 2 units of service.

(a) How many service units are actually delivered?

(b) What is the shortfall in service units compared to the target based on the original budget?

(c) If the government wishes to achieve the original target of service units by allocating an additional amount $X$ (in million naira) to the project, and the same corruption percentages apply to the total budget (original + $X$), what is the minimum value of $X$ (in million naira) required?

Question

A government project is allocated a budget of ₦500 million. Due to corruption, 12 % of the budget is siphoned off by officials, and a further 8 % of the remaining amount is lost through inflated procurement costs. Each million naira that remains can deliver 2 units of service.

(a) How many service units are actually delivered?

(b) What is the shortfall in service units compared to the target based on the original budget?

(c) If the government wishes to achieve the original target of service units by allocating an additional amount $X$ (in million naira) to the project, and the same corruption percentages apply to the total budget (original + $X$), what is the minimum value of $X$ (in million naira) required?

Accepted Answer

(a) 809.6 units; (b) 190.4 units shortfall; (c) X ≈ 117.6 million naira

Neco Model Questions Vol1 2024 Civic Education Question 1

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