The Federal Government has so far released N285bn out of N2.45tn budgeted for capital expenditure in the N10.6tn 2020 National Budget.
The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, announced the figures while fielding questions from State House reporters on Friday after a meeting of the five-man presidential review committee on the impact of COVID-19 on the nation’s economy with President Muhammadu Buhari.
Hajiya Ahmed said the fund released as of Tuesday this week was targeted at financing prioritized and critical infrastructure agencies.
She said that about $220m had been also released this week as counterpart funding for railway projects.
“We have also made the releases for education as well as health. So, the Ministry of Transport, the Ministry of Works and Housing, Niger Delta, a number of ministries and agencies that have important infrastructure projects have got their funds.
“Also this week, we have been able to release to the Ministry of Transport the counterpart funding provided for in our budget that is required for the important railway projects that are currently ongoing, the finances from the China EXIM Bank.”
The minister, while speaking on the work of the committee, set up by the President to review the impact of COVID-19 as well as the crash of crude oil price, said the President had directed them to meet him again next week to provide an update after yesterday’s interim report.
She said the committee had been mandated to ensure that the business of government continues to run as much as possible by continuously funding critical programmes and projects that would enhance growth and employment.
She said: “We are looking at ways and means in which the revenue of government will be stabilized and that we are able to fund the states through the FAAC process at a level that is averagely expected and planned for both the federal as well as the National budget.
“So, as we finish our consultations next week, we will be expecting some approvals and then we will be meeting with you to inform you of the specific approvals that we have been able to obtain from His Excellency the President.”
Reacting to the questions on whether the government would ban flights, the minister said such decision would be made by the medical team.
She expressed optimism that the economy would recover, saying “we have seen already China beginning to go back to work. Of course, there is a lag period for what has happened. The crude oil period has moved from $30 per barrel to $36 per barrel. So, there will be a recovery. But for us, in everything, when something crashes, the recovery is not as fast as the recovery itself.”
She said the country felt the impact of COVID-19 on the economy because China remained one of the largest trading partners.
The Minister of State, Petroleum Resources, Timipre Sylva, said the committee was still consulting and following the development when asked whether the government was considering the option of reducing the price of Premium Motor Spirit (PMS) because of the drop in the crude oil price.
Sylva said: “Of course, usually, the product prices follow the crude oil price. But we are still consulting. We’ll get back to you, please, be patient.”
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the bank is now working with the Nigerian Financial Intelligence Unit (NFIU), the EFCC and other security agencies to identify the “unscrupulous currency speculators” trying to create panic because of COVID-19.
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