FG releases N1.2trn for capital projects in six months

FG releases N1.2trn for capital projects in six months

By Tunde Osho

The Federal Government has released a total of N1.2 trillion to finance capital projects in the 2017 budget.

A statement from the Debt Management Office, DMO, has said “given that the 2017 budget was only finalised in July 2017, the disbursement of N1.2 trillion over a short period of six months to capital projects, is a strong and positive development in Nigeria.”

The release of such a large amount of capital is a strong demonstration of the commitment of the Federal Government to prioritise improvement in infrastructure in order to stimulate economic growth and development, it said.

The office said since the 2017 budget is still being implemented, more releases to capital projects are expected.

It also stated that in line with its statutory mandate of funding the federal budgets, it raised a total of N1.254 trillion from the domestic market through the issuance of the Federal Government of Nigeria bonds, Nigerian treasury bills, as well as Sukuk and Green Bonds.

“This amount was consistent with the provision for new borrowing in the 2017 Appropriation Act,” the statement said.

The DMO also raised $2.8 billion in the International Capital Market through a $300 million Diaspora Bond in June 2017 and a $2.5 billion Eurobond in November 2017 which together represent about 80% of the N1.0675 trillion (about $3.5 billion) provided as New External Borrowing in the 2017 Appropriation Act.

The outstanding 4700 million in External Borrowing is expected from multilateral sources, it said.