The Federal Government has announced plan to boost the economy with additional N350 Billlion.
According to the Minister of Finance, Mrs Kemi Adeosun, plans are also underway to raise $1 Billion from Euro-Bonds by December, this year.
Briefing Journalists in Abuja, the Minister explained that the additional funding, on top of the initial 420 billion Naira released in May, was primarily for capital expenditure projects that would also involve support from local banks and transaction partners.
Explaining further, the minister said: “We are raising money. As you know the Euro-bond capital raise is on. We are about to appoint advisers so we we will be raising additional $1 billion.Two weeks ago we approved the external borrowing plan and that was very important.”
According to her, the government plans to borrow a total of 1.8 trillion Naira at home and abroad to fund an expected budget deficit of 2.2 trillion Naira.
Already, the Federal Government has approved borrowing from the African Development Bank, China, Japan and World Bank with rates of 1.25 per cent and a 20-year maturity.
The Minister said: “When we said we will borrow, we said we will borrow the cheapest money first.We have approvals in that plan from the World Bank, ADB, with interest rates as low as 1.5 per cent and tenures as low as forty years to intervene in some specific areas which include agriculture, education, health, rebuilding of the northeast and of course the railway project that are very key to what we are doing.”