‘Why FG hasn’t fully disbursed N350bn’

The Minister of Finance, Mrs. Kemi Adeosun, has said only N019bn out of the N350bn meant to reflate the economy has been disbursed.
The minister who spoke on Channels Television Sunlight Daily programme cited procedural delays as responsible for the slow disbursement.
Recall in the face of severe economic down turn, the federal government had announced some N350bn fund to be disbursed to fund critical projects as a way of boosting the economy.
“N109bn out of the N350bn has already been disbursed.  The funds are ready; however, there are procedural delays, due to the required public procurement processes.  The selection process however, allows for many new capable companies to participate in the process and getting involved in the FG projects,” she explained.
The minister who spoke on varied economic and national issues noted that if Nigeria is to achieve sustainable growth it needs a planned approach to financial discipline, targeted investment and economic diversification.
Adeosun said: “The government’s Economic Plan is strong on fiscal discipline, because people know we need to get our country working.  And to do that we need to do three things: get the country’s spending in check with firm financial controls, raise money for targeted investment in much needed infrastructure; and see us diversify the economy from a damaging dependence on oil.”
The Minister said she was optimistic Nigeria was up for the challenge, and the higher revenue collection and the greater sharing of non-oil earnings shows the reforms are starting to work.
On the second tranche of the bailout to states she explained that the “facility size is not N90bn; rather N50bn per month first 3 months, and N40bn per month for following 9 months.  Monthly disbursements to each State will be conditional on compliance with pre-agreed FSP milestones.  35 States have applied and are in the process of submitting the required documentation which are being reviewed – There have been erroneous claims in some papers that ‘only seven or five states have met FG’s conditions’, this is factually wrong” the minister stated.