Kemi Adeosun, the Finance Minister has disclosed that the Federal Government is targeting 4.2 per cent GDP growth by 2017. She made the disclosure in Lagos while addressing Chief Financial Officers (CFOs) at the KPMG’s 2016 CFOs forum.
Mrs. Adeosun, who maintained that the Federal Government was poised to increase capital spending to address infrastructure deficit, highlighted that the outlook of the Nigerian economy was hinged on four key pillars: stimulating the economy to achieve a real GDP growth rate of 4.2% in 2017, reducing the cost of governance, extracting efficiencies in the public service.
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She emphasized the need to jumpstart the economy from the near-comatose state informed its decision to tackle the nation’s infrastructure deficit with planned increase in expenditure by 30 per cent in 2016.
Besides, government has assured that the N1.8 trillion projected capital expenditure would be strictly invested in transport, roads, housing, power and health sectors.
Others factors include: enhancing collection of internally generated revenues, increasing government expenditure on infrastructure as well as funding the budget deficit and negative trade balance cost effectively.
The Guardian reported Adeosun to have said: “N1.8 trillion borrowing would be structured to achieve cost effectiveness and acceptable debt sustainability ratios. $4.5 – 5bn to be raised from multiple external sources including multilateral agencies and export credit agencies, tap of eurobond market, balance to be raised in domestic market.”
“Government is borrowing too much in the domestic market and we want to repay the bonds and go out so that the money come looking for you,” she said.
