The Debt Management Office (DMO) says the release of N1.2 trillion for capital projects by the Federal Government in six months is a positive development in the country. The capital projects are contained in the 2017 Appropriation Act. The 2017 budget was only finalized in July 2017, when its implementation started.
The DMO said in a statement on Tuesday evening that the disbursement of the N1.2 trillion, over a short period of six months to capital is a strong and positive development in Nigeria. “The release of such a large amount for capital projects is a strong demonstration of the commitment of the present administration to prioritize improvement in infrastructure in order to stimulate economic growth and development. Since the 2017 Budget is still being implemented, more releases to capital expenses are expected,’’ the statement read in part.
The DMO also stated that in line with its statutory mandate of funding 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”.
“Altogether, these represent about 80 per cent 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,’’ the DMO said.