2017 Budget: FG to Release Another N750bn Capital Vote

Kemi Adeosun

Ndubuisi Francis in Abuja

The federal government is set to release another N750 billion to its ministries, departments and agencies (MDAs) as part of the capital component of the 2017 budget.

It had earlier released N450 billion for capital projects since the budget was signed into law last June.
Should it make good its promise, it would have released almost 50 per cent of its capital spending plan for the 2017 fiscal year.

The Minister of Finance, Mrs. Kemi Adeosun, who made the disclosure Monday during a meeting with a delegation of investors from France, said the sum of N450 billion had previously been released for capital projects, adding that with the additional N750 billion, the sum of N1.2 trillion would have been invested in infrastructure projects.

The delegation was made up of 30 companies from France that had expressed their readiness to invest in key sectors of the Nigerian economy.
Adeosun said: “What the government is doing is to provide the enabling infrastructure that would bring the country’s potential to reality.

“Last year, we released N1.3 trillion of the capital budget and so far this year we have released N450 billion and this week we will release another N750 billion and this will take the releases to N1.2 trillion by the end of the year.”

In his remarks, the head of the French delegation, Mr. Philippe Labonne, said the investors had indicated interest in investing in key sectors of the economy such as banking, infrastructure, renewable energy, agriculture and youth empowerment.

The decision of the companies to invest in Nigeria was taken following a directive by the government of France encouraging French companies to increase their investments in Nigeria.
He described the Nigerian economic environment as encouraging owing to the stability in the foreign exchange market in recent months.

To achieve their investment objectives, Labonne said most of the French companies would form strategic partnerships with their Nigerian counterparts.
“We are here to assess the investment environment in Nigeria to enable us to take advantage of the country’s investment opportunities.

“We have about 30 companies in this delegation in sectors such as infrastructure, services, agriculture and banking and the purpose of this meeting is to identify key sectors where we can invest.
“We are interested in many areas such as energy, agriculture, services especially towards youths and we will identify other areas subsequently,” he said.

Before the meeting with Adeosun, the delegation met with the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Ms Yewande Sadiku.
Sadiku had informed the French investors that Nigeria remains a top destination of capital inflows on the African continent.

She said: “Nigeria is strategically located in Africa to serve the needs of many countries as a regional hub on the continent.
“We have a compelling population that provides the market which means that Nigeria can serve as a manufacturing hub for investors.”

While expressing delight in the interest shown by the investors, Sadiku noted that France was one of the many countries that Nigeria was targeting in its investment strategy.
On investment flows into Nigeria, Sadiku said France was number 10 on the list, accounting for about $1 billion of the capital importation into Nigeria.

  • Morgan Ero

    mrs adeosun, as much as i like and admire you professionally, this is ridiculous, that you are talking about releasing part of the 2017 budget in December 2017 is symptomatic of the problem with the budgeting circle and implementation in Nigeria and this is why things don’t get accomplished as budgeted. are you planing on spending the remaining budget allocation for 2017 before the beginning of 2018 or moving the funds forward. why this late in the year. maybe the budget was passed late during the year, but you will be doing the country a great service if you harmonize the budget circle and start spending the allocations of each year within the calendar years as proposed. the country has to start somewhere and the time is now. please harmonize the budget circle.

    • Christian Christian

      Isnt when you have the money that you can spend it? Just asking ni o, i don’t have the details.

    • Truthisbitter

      What point are you trying to make here? As far as the 2018 budget is not made into law yet, the 2017 appropriation is still running. So we should abandon the 2017 budget even when the 2018 budget proposal is yet to be approved and signed into law.

      • Wise One

        Time frame is what matters here. There is sufficient time to execute the part of capital expenditure covered by 63% of 2017 before end of first quarter of 2018.

        • Admonisher

          What time frame are you talking about?
          Nigeria wants to buy railway coaches, are those coaches on the shelf?.
          What of roads, they buy ready made concrete in jackals market?

    • Admonisher

      You have to understand capital releases in terms of payment for procurement and construction work. Most times the true value of work done on a project qualifies for payment at the 3rd or 4th quarter. Sometimes even in the next year.
      Nigerians are too simplistic and amateurish in their understanding. For capital expenditures, try to understand projects, milestones, work done and payment.

    • Pluti

      My clock says we are in 2017, you should be asking her about the executions and making sure all tranches are released not criticizing the release. When 2018 comes in 16 days time then you can say this cos for now the country is still running on the 2017 budget and maybe some of 2016

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