…plans $1 billion loan for Capital projects

The Federal Government plans to release the sum of N350 billion to Ministries, Departments and agencies (MDAs) for their capital projects in the next one week.

Finance Minister, Mrs. Kemi Adeosun who spoke to newsmen at the Finance Ministry headquarters in Abuja said modalities for the disbursement have been put in place but called on the National Assembly to partner with the executive in amending some portions of the Public Procurement Act to reduce the time frame for tenders and advertisements in order to fast-track the due process mechanism.

On the current recession, the Minister said the thrust has not changed as the economy needs reflation, adding that there was need to switch from consumption driven economy to investment driven economy.

Meanwhile she said that over N420 billion has been released so far to the MDAs for capital spending in the last two quarters, stressing that the N350 billion to be injected in the next one week will go a long way in tackling the essential infrastructure needs of the country.

She further said that following the approval by the Federal Executive Council of the external borrowing plan recently, arrangements are on to borrow the sum of $1 billion which will be strictly used for capital projects as parts of government’s deliberate effort to reflate the economy and to a large extent create jobs and other opportunities for the citizenry.