FG Plans N350bn Capital Projects, $1bn Eurobond to Ease Recession

In line with its commitment to stimulate economic growth in the country, the Federal Government is set to release over N350 billion to fund capital projects across the country, in addition to $1 billion Eurobond scheme before the end of the year.

The Minister of Finance, Mrs. Kemi Adeosun assured that the N350 billion capital votes will be released immediately into the system asthe Federal Government continues to tackle the economic crisis currently
facing the nation.

Adeosun explained:

“With the N350 billion to be released this week, the federal government would have released the total sum of N770 billion for capital projects this year, having released N420 billion thus far in
2016.”

She explained that the bulk of the money so far released went into on-going projects, especially works, defence, transportation, interior, power and agriculture.

The minister also disclosed that the administration was working on raising $1 billion Eurobond. The proceeds for this would be used only for capital projects.

Giving further clarifications on the Eurobond issue, Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo, said: “We intend to raise the money before the year ends. In terms of the progress made so far, more than five weeks ago, we put out advertisements for Request For
Proposals in local and international media, following due process so that we can allow transaction partners who are interested to compete.“

The closing date of the RFPs is September 19, 2016.

“We have a directive to make sure we use minimum time to conclude all these activities. So we
assure you that we are going to cut the time because of the emergency situation. Before the middle of December, we will have the money. We are very focused on the fact that these monies are needed urgently to turn around the economy and we are working on that.”

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