Nigerian government releases $312m for capital projects

Nigeria’s Vice President Yemi Osinbajo has announced the government will spend some $312 million in the coming days on infrastructure development.

The money is expected to go into key sectors of the economy.

“The many sectors for which the fund has been released are power, works, housing, defence, transportation and agriculture. One of the first areas in which we brought change is in public financial management. This has had the consequential effect of saving jobs as well as money.”

The announcement comes at a time the west African nation is struggling to revive its economy which has been badly hit by the slump in oil prices on the world market.

Nigeria’s Gross Domestic Product (GDP) shrank 0,36 percent in the first quarter of this year leaving the country on the brink of recession.

Even though the government’s spending has shot up, the Vice President says government’s spending will be kept at the minimum.

“We’ve also pledged to keep capital spending in the budget at a minimum of 30 percent. This is a target that we are determined to keep since it is investment that grows our economy.”

Th government is also expected to release an additional 100 billion naira in the coming days.

Many of Nigeria’s 36 federal states are said to be struggling to pay salaries of civil servants in spite of assistance from the federal government.