Nigeria In Recession Federal Government to inject N350 billion in capital projects

The finance minister also explained that the bulk of the money has already been released into on-going projects

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Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. REUTERS/Akintunde Akinleye play Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. REUTERS/Akintunde Akinleye
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The Federal Minister of Finance, Mrs. Kemi Adeosun, has announced that a sum of N350 billion capital votes will be pumped into the "system" immediately, as the Federal Government continues to battle the country's economic woes.

Adeosun, speaking at a press briefing in Abuja on Friday, insisted that the Buhari administration is not backing down on its moves to stimulate the economy.

Nigerian President Muhammadu Buhari listens as British Prime Minister Cameron opens the international anti-corruption summit on May 12, 2016 in London, England. REUTERS/Dan Kitwood/Pool play Nigerian President Muhammadu Buhari listens as British Prime Minister Cameron opens the international anti-corruption summit on May 12, 2016 in London, England. REUTERS/Dan Kitwood/Pool

 

With the N350 billion to be released, next week, the federal government would have released the total sum of N770 billion for capital projects this year, having released N420 billion thus far in 2016,” the Minister said, at the briefing.

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The finance minister also explained that the bulk of the money has already been released into on-going projects in the following sectors: works, defence, transportation, interior, power, and agriculture.

The FG recently confirmed officially that the country is in a recession, after months of drastic downturns in the price of crude oil, Nigeria's main source of revenue, and a constant - and steady - drop in the value of the Naira.

Nigeria slides into recession as economy contracts by 2.06 pct in Q2 play

Nigeria slides into recession as economy contracts by 2.06 pct in Q2

(Reuters)

 

This move to inject funds into the economy, as a way of stimulating it back to life, has been criticized by several experts, with many opining for a more long-term overhaul of the economy and diversification of the nation's revenue generation model. In the meantime, Nigerians continue to suffer from the recession and astronomical inflation.

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