FG Releases N1.2trn For Capital Projects In 6 Months

The Federal Government has released a total N1.2 trillion to Ministries, Departments and Agencies (MDAs) of government for implementation of capital projects contained in the 2017 Appropriation Act.

This was according to information contained on the website of the Debt Management Office (DMO), on Tuesday.

According to the Debt office, the disbursement of N1.2 trillion over a short period of 6 months to capital projects, is a strong and positive development in Nigeria.

The DMO further noted that the development indicates governments commitment to prioritise improvement in infrastructure to stimulate economic growth and development.

Recall that the Federal government had in December released N750 billion to its (MDAs) as part of the capital component of the 2017 budget. It had earlier released N450 billion for capital projects.

According to the information, more releases to capital are expected, since the 2017 Budget is still being implemented.

The DMO 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 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 DMO also raised USD2.8 billion in the International Capital Market through a USD300 million Diaspora Bond in June 2017 and a USD2.5 billion Eurobond in November 2017 which together represent about 80% of the N1.0675 trillion (about USD3.5 billion) provided as New External Borrowing in the 2017 Appropriation Act.

The outstanding amount of USD700 million in External Borrowing is expected from multilateral sources.