The Minister of Finance, Mrs. Kemi Adeosun has disclosed that the Federal Government in a bid to stimulate economic activities says it is releasing additional N350bn for capital projects captured in the 2016 budget.
While briefing journalists on Friday, she stated that the interventions measures was 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.
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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 and cash backed fully N420bn capital releases. As we speak now, we are about releasing another N350bn that’s 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 to continue in their efforts in the new phase, interior, transport.”
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 provide direct cash to vulnerable Nigerians.
