Nigeria records N1 trillion in capital releases for 2016 budget

27 Mar 2017
Financial Nigeria

Summary

The Minister of Finance said the amount has been earmarked for implementation of various projects like the dual standard railway line to link Lagos and Kano, upgrading of the country’s aviation sector and expansion of irrigation facilities to boost agriculture.

Nigerian Minister of Finance Kemi Adeosun

The Federal Government has said capital releases to Ministries, Departments and Agencies (MDA) for the 2016 budget has reached a total of N992,433,595,071.42. According to a statement released on Sunday by the Director of Information at the Ministry of Finance, Salisu Na’inna Dambatta, this amount is the highest release to be made for capital spending in the history of the country.

Minister of Finance, Kemi Adeosun, made the disclosure at an interactive session with members of the House of Representatives’ Tactical Committee on Recession in her office in Abuja. The administration of President Muhammadu Buhari allocated N1.59 trillion for capital expenditure in the N6.06 trillion 2016 budget. The 2016 budget, which has a deficit of N2.2 trillion, has faced implementation challenges due to the slump in oil prices and high oil output loss owing to attack on oil and gas infrastructure by militants in the Niger Delta region.

“So far, N1tn has been released on capital and this is the highest so far in the history of this country. With the current stability in oil price and the return of normalcy in the Niger Delta, I am sure we will do more this year,” Adeosun said.

She said the released amount include aggregate sum of N870.05 billion to the MDAs as of the end of February 2017, and additional release of N65.39 billion. Other releases are authority to incur expenditure (AIE) in February amounting to N11.17 billion, and an additional AIE worth N45.8 billion in March 13.

The minister said the amount has been earmarked for the implementation of various projects like the dual standard railway line to link Lagos and Kano, the rehabilitation of roads, upgrading of the country’s aviation sector and the expansion of irrigation facilities to boost agriculture.

“We are determined to transform the economy and this is why we are focused on capital expenditure. If we have our rail, road and power, then we will be able to generate jobs and prosperity,” Adeosun added.

The 2017 budget of N7.3 trillion, which is yet to be passed by the National Assembly,  has a capital expenditure component of N2.24 trillion and deficit of N2.36 trillion.


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