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Nigeria pumps $2b into economy

 

Nigeria is drawing two billion dollars from its oil savings to boost liquidity in the economy,

 

Finance minister, Remi Babalola said the country’s national economic council — a body comprising the presidency, the 36 provincial governors and heads of federal economic units — had cleared the stimulus package.

The funds will come from the country’s excess crude account, a fund into which windfalls from oil are stored.

The money is to be distributed to all the three tiers of government — federal, state and local governments — to provide “additional liquidity into the system to re-energize” it, he said.

The money will be used to cushion the effects of the global economic crisis, stimulate manufacturing, create employment, improve power and road sectors.

Nigeria, the world’s eight largest oil exporter, has seen its output drop by around a third due to violent militant attacks on oil facilities and workers in its oil hub, the Niger Delta.

An offer for amnesty by government saw most of the known and dreaded militant leaders lay down arms by the Sunday deadline, but the umbrella rebel group the Movement for the Emancipation of the Niger Delta vowed to resume fighting