2017 appropriation: N2trn released for capital projects

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THE Debt Management Office (DMO) has indicated that a total of N1.2trillion has been released by the Federal Government for capital projects in the 2017 Appropriation Act.

The office noted that the release of such amount for the capital project is a strong demonstration of the commitment of the present administration to prioritise improvement in infrastructure in order to stimulate economic growth and development.

The DMO added that 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 N1.254 trillion 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 was consistent with the provision for New Borrowing in the 2017 Appropriation Act.

The DMO also raised $2.8 billion in the International Capital Market through a USD300 million Diaspora Bond in June 2017 and a USD2.5 billion Eurobond in November 2017 which together represent about 80 percent of the N1.0675 trillion provided as new external borrowing in the 2017 Appropriation Act.

The outstanding amount of $700 million in external borrowing is expected from multilateral sources.

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