16 September 2016, Lagos – The Federal Government in a bid to stimulate economic activities says it is releasing additional N350bn for capital projects captured in the 2016 budget.
The Minister of Finance, Mrs. Kemi Adeosun, gave the figure on Friday while briefing journalists on intervention measures being taken by the government to reflate the economy which is currently in recession.
She said that the release of the additional N350bn brings the total capital releases made by the government to N760bn.
She said with the economy in recession, the level of consumer demand would be reduced drastically, hence the need for government to step in by injecting liquidity.
She said, “What government wants to do is to step in and begin to spend and pushing more money into the economy and then get things moving again.
“Since the budget was passed in May, we have released N420bn. As we speak now, we are about releasing another N350bn. Everything has been between May and now.
“One of the sectors we spent the money on, of course the largest, has been power, works and housing. Quite a lot has gone on defence because we need to rebuild the credibility of our Army.”
The minister said out of the N350bn, the government would be setting aside N60bn for the implementation of the social intervention programme.
She said the implementation of social safety schemes was vital, as it would enable the government to provide direct cash to vulnerable Nigerians.