Economics
Nigeria Plans to Spend Itself Out of a Slump
- Central bank increased borrowing costs to record-high in July
- Government presented 6.1 trillion naira budget for 2016
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Nigeria’s government is looking to spend its way out of an economic slump after the central bank said it can’t bolster growth and is instead targeting inflation with a record interest rate.
The government is planning 1.75 trillion naira ($5.6 billion) in capital spending for the year, more than four times the amount spent in 2015, according to information from the budget office. The state has spent 248 billion naira so far, the Presidency said on Aug. 1. Nigeria intends to borrow abroad to help plug its 2.2 trillion naira budget gap and make more funds available for capital investments, Finance Minister Kemi Adeosun told lawmakers last month.