ABUJA Feb 23 Nigeria aims to rise the
proportion of government spending devoted to infrastructure to
30 percent from 10 percent and to mobilise private capital for
additional funding, Finance Minister Kemi Adeosun said on
The government has laid out plans to spend a record 7.29
trillion naira in 2017, up from 6.06 trillion naira budgeted for
last year, but must also find funds to cover a big shortfall in
the budget resulting from lower prices for oil, its main export.
Adeosun said she was committed to boosting capital spending
across key areas such as power, transport and water, which would
help underpin growth in agriculture, mining and manufacturing.
"We will now target 30 percent of government expenditure on
infrastructure, up from 10 percent," she told an investor
conference in the capital Abuja.
Adeosun said the government would tap private capital to
complement its own expenditure, adding that fundraising was in
progress for housing and road trust funds in partnership with
the private sector.
She said Nigeria wanted to move towards longer term funding
at lower cost. The government has said it plans to borrow up to
$10 billion this financial year, with about half coming from
To help cover the deficit, the country sold $1 billion worth
of 15-year Eurobonds this month that were almost eight times
oversubscribed and the government is now seeking approval from
parliament to issue an additional $500 million Eurobond.
Africa's biggest crude producer has seen revenues plunge
along with the price of oil and is mired in its first recession
for 25 years.
Nigeria's overall debt was 84 percent domestic and 16
percent foreign, but the government wants to move to 40 percent
foreign debt by the end of 2019 to speed up infrastructure
projects and cut borrowing costs.
On Thursday, the government said it will launch a 20
billion-naira "green bond" in April to fund projects to reduce
carbon emissions and develop renewable energy.
It also plans to raise a debut $300 million diaspora bond
abroad and sell a maiden sovereign sukuk in the local market.
(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing
by Catherine Evans)