Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future.

Capital expenditure, which leads to the creation of assets are long-term in nature and allow the economy to generate revenue for many years by adding or improving production facilities and boosting operational efficiency. It also increases labour participation, takes stock of the economy and raises its capacity to produce more in future.

This represents 74 per cent capital budget performance of the 2021 budget for which N4.569 trillion is estimated to be spent in the 2021 budget year on capital expenditure.

Of N3.40 trillion released, N2.98 trillion or 83 per cent was released to Ministries, Departments and Agencies (MDAs) for capital projects; N369.9 billion was for Multilateral/Bilateral Project-tied loans, and N49.52 billion to Government Owned Enterprises (GOEs) Capital Expenditure.

Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed confirmed the releases yesterday in Abuja at the symbolic cheque presentation ceremony of 2021 sovereign sukuk issue proceeds of N250 billion to the implementing ministries.