FG To “Pad” Economy By Boosting Capital Spending

Minister of Finance, Kemi Adeosun
Minister of Finance, Kemi Adeosun

In order to boost the economy, the federal government has announced plans to increase spending on capital projects this year by N60 billion.

Kemi Adeosun, Minister of Finance on Friday disclosed federal government’s intention to allocate N60 billion ($180 million) more spending on capital projects as part of the 2016 budget and in addition to what was released earlier.

The government has so far spent over N400 billion on capital projects this year, a far cry from the N1.8 trillion allocated as capital expenditure in the 2016 budget.

Africa’s largest economy is going through its worst financial crisis for decades as a result of slump in oil revenues.






     

     

    The government had budgeted N6.07 trillion for 2016 based on crude oil bench mark of $38 per barrel and a production output of 2.2 million barrels per day.

    But the sustained attacks on oil installations by Niger Delta militants have significantly affected output and oil revenues.

    Minister of State for Petroleum, Ibe Kachikwu, yesterday at a media function in Abuja, disclosed that the country produces 1.56 million barrels per day-about 700,000 barrels per day below the target production.

    Both Adeosun and the Central Bank Governor, Godwin Emefiele, have hinted that the economy was in recession and that it was impossible to fully implement the 2016 budget.

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