The Federal Government, in a bid to stimulate economic activities, on Friday said that it would release additional N350bn for capital projects captured in the 2016 budget.
The Minister of Finance, Mrs. Kemi Adeosun, gave the figure while briefing journalists on intervention measures being taken by the government to reflate the economy which is currently in recession.
She said that the provision of the additional N350bn brought the total capital releases made by the government to N760bn.
She said since the economy is currently 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 push 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.
“Of the sectors we spent the money on, of course the largest had 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; also interior and 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 to provide direct cash of N5,000 to vulnerable Nigerians.
She said,
“There will also be the funding of about N60bn in the social intervention programme and that’s very important in terms of putting money into people’s pocket.
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