2017 Budget: N1.2tn Released For Capital Projects, Says DMO

A total of N1.2tn was released between July and December 2017 to fund capital projects in the 2017 budget, the Debt Management Office said on Tuesday.

In a statement made available to our correspondent in Abuja, the DMO said more releases were also expected since the implementation of the 2017 budget was still ongoing.

It stated, “Given that the 2017 budget was only finalised in July 2017, the disbursement of N1.2tn over a short period of six months for capital projects is a strong and positive development in Nigeria. Furthermore, the release of such a large amount for capital projects is a strong demonstration of the commitment of the present administration to prioritise improvement in infrastructure in order to stimulate economic growth and development.

“Since the 2017 budget is still being implemented, more releases to capital are expected.”

The DMO also stated that in line with its statutory mandate of funding the federal budgets, it raised a total of N1.25tn 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 is consistent with the provision for new borrowing in the 2017 Appropriation Act, it added.

The DMO also raised $2.8bn in the international capital market through a $300m Diaspora Bond in June and a $2.5bn Eurobond in November, which together represent about 80 per cent of the N1.07tn (about $3.5bn) provided as new external borrowing in the 2017 Appropriation Act.

According to the DMO, the outstanding amount of $700m in external borrowing is expected from multilateral sources.

Source: PUNCH