FG to inject more than $1b into collapsing economy

The Nigerian government on Friday said it will inject funds to the tune of 1.1 billion U.S. dollars into its ailing economy, particularly to quickly address the effects of recession.

Minister of Finance Kemi Adeosun told reporters in Abuja that the government would raise 1 billion USD from Eurobonds by mid-December this year.

Adeosun said the injected amount of money is to primarily fund capital expenditure projects in the country. This would also involve support from local financial institutions and other transaction partners.

Nigeria entered a recession on Aug. 31, when figures released by the National Bureau of Statistics showed the second quarter Gross Domestic Product fell 2.06 percent year on year, after slipping 0.4 percent in Q1.

The West African country’s present economic situation has already been described, both by the government and financial experts, as “the worst possible time ever”, with many predicting that this recession may take up to three years before the country can come out of it.

The official said Nigeria plans to source for more funds by borrowing a total of 1.8 trillion naira (more than 5 billion US dollars) at home and abroad to fund an expected budget deficit of 2.2 trillion naira.

In addition to its solution-seeking plans, Adeosun disclosed the Nigerian government had approved an external three-year rolling plan to seek loans from the African Development Bank and the World Bank to meet the country’s current development needs.

The concessional loans sought by Nigeria, she added, will go to the strategic sectors that will help to revive the economy.

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