The Buhari Media Organisation (BMO) has commended President Muhammadu Buhari’s administration for the early release of funds for capital projects and for commencing effective deliveries of the schedule of implementation of the 2020 January- December budget cycle from the first quarter, as promised.
Minister of Finance, Budget and National Planning, Zainab Ahmed, confirmed the release of the sum of N285 billion for 2020 capital projects and counterpart funding of $220 million (N67.3 billion, at official rate) to the China EXIM Bank for railway projects.
Commending the Federal Government’s efforts to deliver on critical infrastructural projects before the end of the year, BMO in a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, said the early release of funds, to a large extent, sends positive signals to both domestic and foreign investors on the seriousness of the government to boost economic growth.
“This will also have the capacity to pragmatically stimulate economic activities and capital inflow into the system.
“This is the first time in 16 years that the Federal Government has commenced the implementation of the annual budget from the first month.
“This will recalibrate the Nigerian economic threshold, it also shows the fiscal discipline capacity of the government even when confronted by global headwinds like coronavirus disease.
“Injection of funds for capital projects into the system at a time like this will save the economic situation, as it were, thereby increasing economic activities, boosting consumer household demand and this would help to sustain economic activities in the country.
“It will also help in boosting both domestic and foreign investors’ confidence in carrying large investments, whether as a direct or portfolio investors”.
According to the pro-Buhari group, the $220 million counterpart funding for rail system is a welcome development, “it is a contribution to the railway revolution and we are certain of a truly economic growth with the commencement of this, for it will serve as a basis for GDP growth.
“The injection of funds for critical capital projects will engender a multiplier effect vis-a-vis job creation, address some social ills among the youths through engagement in meaningful economic activities, as well as eliminate crime within the society and among the teeming youth”, the statement added.