Minister of Finance, KemiAdeosun, today disclosed plans by the Federal government to inject N350 billion into the economy.
Speaking with reporters in Abuja today, Adeosun also disclosed that there are plans to also raise $1 billion from Euro-bonds by mid-December to ease the recession.
According to Adeosun, the N350 billion being injected will be directed towards capital expenditure projects. “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,” she said
The Minister said the Federal government plans to borrow N1.8 trillion from the African Development Bank, China, Japan and World Bank with rates of 1.25 per cent and a 20-year maturity. She added that the borrowed money will be used to fund an expected budget deficit of N2.2 trillion.
“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% 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 rail way project that are very key to what we are doing” she said