ADVERTISEMENT

Government plans to put up to $1.7B into capital projects in coming days

In May, Finance Minister Kemi Adeosun said 350 billion naira would be injected into the economy "every quarter until we stimulate growth".

Senator Udoma Udo Udoma

Nigeria's government will next week pump much of the 350 billion naira ($1.76 billion) earmarked for capital projects this quarter into Africa's biggest economy, the budget minister said on Wednesday.

The spending is part of efforts by the OPEC member to stimulate an economy that contracted by 0.4 percent in the first quarter of the year. It is going through its deepest crisis in decades, brought on by the fall in crude prices.

In May, Finance Minister Kemi Adeosun said 350 billion naira would be injected into the economy "every quarter until we stimulate growth".

"We expect ... the Ministry of Works ...(to) have quite a substantial release in the next week or so," Budget Minister Udoma Udo Udoma told reporters.

ADVERTISEMENT

The cabinet expects that various ministries, departments and agencies "should fast track processes for the capital budgets releases so that the economy can be quickly reflated," he said, adding that the impact would be seen "by the third quarter".

Last month Nigeria's central bank governor said a recession appeared to be "imminent".

President Muhammadu Buhari signed the delayed 2016 budget into law last month. The record 6.06 trillion naira ($30.6 billion) budget triples capital expenditure compared with the previous year.

The government plans to generate 3.38 trillion naira this year from non-oil sources, up 87 percent from 1.81 trillion in 2015.

But with Nigeria's heavy reliance on oil sales, which comprise about 70 percent of national income, it is unclear how this will be achieved.

ADVERTISEMENT

The budget assumes oil production of 2.2 million barrels per day (bpd) at 38 dollars a barrel. But production has fallen to a 20-year low of around 1.6 million bpd following a wave of militant attacks on oil facilities in the last few months.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Lagos VIS seizes 50 unroadworthy vehicles in enforcement operation

Lagos VIS seizes 50 unroadworthy vehicles in enforcement operation

Aiyedatiwa sends 12 commissioner nominees to Ondo Assembly for confirmation

Aiyedatiwa sends 12 commissioner nominees to Ondo Assembly for confirmation

Woman saves animal from the streets — then she finds out it is something else

Woman saves animal from the streets — then she finds out it is something else

Alake calls on Badaru to fish out illegal miners, violators of mining laws

Alake calls on Badaru to fish out illegal miners, violators of mining laws

Divers find bodies of 2 people who drowned after Baltimore bridge collapsed

Divers find bodies of 2 people who drowned after Baltimore bridge collapsed

INEC rejects LP's National convention in Anambra, questions venue change

INEC rejects LP's National convention in Anambra, questions venue change

8 people including professor declared wanted over killing of 17 soldiers

8 people including professor declared wanted over killing of 17 soldiers

INEC to publish credentials of 17 Edo governorship candidates on Saturday

INEC to publish credentials of 17 Edo governorship candidates on Saturday

Hardship: Abiodun to begin sale of rice to Ogun residents at 50% discount

Hardship: Abiodun to begin sale of rice to Ogun residents at 50% discount

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT