Economy
2017 Budget: CBN to Spend N10b on Lunch, Others
By Taiwo Adisa
The Central Bank of Nigeria (CBN) is to spend the sum of N3 billion to buy lunch and another N7.029 billion on other allowances for its officials at the end of the 2016 Fiscal year, the bank’s 2017 budget already approved by the Committees on Banking in the National Assembly has revealed.
The budget, submitted to the National Assembly in July, had experienced some delays in passage, but a joint committee of the Senate and House of Representatives on banking and other financial institutions had recommended the approval of a N408.8 billion budget for 2017 in 2016.
Though the Fiscal Responsibility Act 2007 mandated the CBN and other revenue making agencies to submit their budgets for appropriation by the National Assembly, the apex bank had resisted the process until President Muhammadu Buhari forwarded the budgets of the agencies to the National Assembly in July.
Under the leadership of Mr Sanusi Lamido Sanusi as CBN governor, the bank resisted the attempt to submit its budget to the National Assembly, claiming that the CBN Act indicated that its budget should be approved by the CBN Board.
But the National Assembly had insisted that while Section 6(3) of the CBN Act vested the approval of the budget on the CBN Board, Section 21(3) of the Fiscal Responsibility Act 2007 provided that the budget must be transmitted to the National Assembly for appropriation.
Details contained in the budget document also showed that the CBN expected an operating surplus of N12 billion in 2016. While it expects to spend the sum of N408.8 billion, it expects to make a total income of N420.7 billion.
The CBN, according to the approved budget, projected to make N34 billion from interests on foreign investment; the sum of N298.2 billion from interests on domestic investment; another N37 billion on interest on domestic loans and advances and the sum of N50 billion income from operational activities.
A breakdown of the expenses indicated that the apex bank would spend the sum of N80 billion on staff cost and N44 billion on administrative expenses, while operational expenses in general would cost N283.5 billion.
Besides the sum of N3 billion earmarked for lunch, the bank has also earmarked the sum of N9.4 billion for payment of 13th month bonus; another N6 billion for furniture allowance and another N7.9 billion as transportation allowances.
The document also indicated that the apex bank would spend the sum of N2.3 billion on medical allowances and the sum of N641 million as security guards expenses.
Further breakdown of the expenditure profile showed that the CBN would spend N27 billion on currency management and monetary operations ; another N150 billion on liquidity management; N50 billion as contribution to banking sector resolution; N3 billion on development expenses; N8.7 billion on strategic initiative; N40.4 billion on intervention projects and N4 billion as contingencies.
The budget document provided a list of over 60 intervention projects being undertaken by the CBN at the various universities and colleges at the cost of over N40 billion.
Intervention projects include the construction of Centre of Excellence at the University of Nigeria, Enugu Campus at the cost of N231 million; Centre of Excellence at Ahmadu Bello University, Zaria(N530.3 million);Centre of Excellence at University of Ibadan(198.5 million); Hostel Block at NIPSS, Kuru (N676 million); Auditorium building at NIPSS, Kuru (N10.7 million); Construction of Science Laboratory at Enugu State University of Science and Technology (166 million); Centre of Excellence at the University of Lagos(N950 million); Centre of Excellence at Nigerian Defence Academy, Kaduna (N872 million; Construction of Students’ Hostel at Nnamdi Azikiwe University, Nnewi Campus(N189 million);Development of Centre of Excellence at the University of Port Harcourt(N1.250 billion); provision of new facilities at Offa Grammar School, Kwara State(N2 billion); Construction of Office/lecture hall at Faculty of Arts, Environmental Sciences and Supply of equipment at the Kaduna State University, Kaduna (N404 million); projects at Administrative Staff College Badagry, Lagos(N1bn) and another project at Federal Medical Centre, Azare, Bauchi State at N800 million, among others.
The CBN also budgeted the sum of N760 million for rebuilding of Nyanya Motor Park, as well as the sum of N3.025 billion as intervention in public infrastructure in military barracks across the six geopolitical zones.
Other big-spending projects of the CBN included intervention projects in the six geopolitical zones put at N8.750 billion; intervention at the University of Abuja at N750 million; a N710 million project at Federal Treasury Academy, Orozo, FCT and another N5.7 billion project called International Convention Centre, Abuja.
http://tribuneonlineng.com/2017-budget-cbn-spend-n10bn-lunch-others/
By Dipo Olowookere
A 0.17 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Friday, extending the stay of the local bourse in the positive territory.
This uptrend was maintained despite profit-taking in the banking sector, which left its index down by 0.23 per cent at the close of trading activities.
Business Post reports that the insurance industry expanded by 4.04 per cent during the session, the energy counter improved by 1.05 per cent, and the consumer goods space gained 0.58 per cent, while the industrial goods sector closed flat.
Consequently, the All-Share Index (ASI) went up by 170.62 points to 102,353.68 points from 102,183.06 points and the market capitalisation grew by N541 billion to N62.851 trillion from N62.310 trillion.
There were 34 price gainers and 22 price losers yesterday, indicating a positive market breadth index and strong investor sentiment.
The trio of Caverton, Livestock Feeds and Sovereign Trust Insurance appreciated by 10.00 per cent each during the session to quote at N2.20, N5.94, and N1.10, respectively, as Neimeth jumped by 994 per cent to N3.43, and Royal Exchange increased by 9.88 per cent to 89 Kobo.
On its part, Academy Press lost 9.74 per cent to close at N3.15, PZ Cussons declined by 9.09 per cent to N25.00, DAAR Communications weakened by 8.64 per cent to 74 Kobo, Transcorp Power shed 5.91 per cent to settle at N46.95, and Dangote Sugar fell by 4.94 per cent to N38.50.
A total of 327.8 million shares valued at N11.8 billion were traded in 11,905 deals on Friday versus the 472.2 million shares worth N16.7 billion transacted in 12,336 deals on Thursday, representing a decline in the trading volume, value, and number of deals by 30.58 per cent, 29.34 per cent and 3.49 per cent apiece.
Access Holdings recorded the highest sales with 49.1 million stocks sold for N1.2 billion, Fidelity Bank exchanged 20.4 million shares valued at N359.0 million, UBA traded 20.1 million equities worth N681.0 million, Oando transacted 14.8 million shares for N998.1 million, and Universal Insurance traded 13.8 million stocks worth N8.7 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement with a 0.26 per cent gain on Friday, January 17 amid renewed interest in unlisted stocks.
This raised the market capitalisation of the trading platform by N2.79 billion at the close of business to N1.075 trillion from the N1.072 trillion it closed in the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) went up by 8.08 points at the close of transactions to 3,111.91 points from the 3,103.83 points recorded at the previous session.
Yesterday, the volume of securities traded by investors went down by 606 per cent to 486,215 units from 1.2 million units, the value of shares shrank by 84.7 per cent to N2.8 million from N18.0 million, and the number of deals decreased by 65 per cent to 14 deals from the 33 deals carried out a day earlier.
In the final trading day of the week, there were three price gainers and one price loser, Geo-Fluids Plc, which lost 9 Kobo to finish at N4.70 per unit versus the preceding session’s price of N4.79 per unit.
On the flip side, Okitipupa Plc gained N3.60 to settle at N39.59 per share compared with the previous day’s N35.99 per share, Industrial and General Insurance (IGI) Plc added 3 Kobo to wrap at 36 Kobo per unit compared with the preceding session’s 33 Kobo per share, as FrieslandCampina Wamco Nigeria Plc improved its value by 49 Kobo to N39.65 per unit from N39.16 per unit.
At the close of business, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.
The most active stock by volume (year-to-date) remained IGI Plc with 23.5 million units worth N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units sold for N134.9 million.
By Adedapo Adesanya
The Naira extended its appreciation against the US Dollar by 0.06 per cent or N89 Kobo on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 17, trading at N1,547.58/$1 compared with the previous day’s value of N1,548.47/$1.
Market analysts expect that the Naira will appreciate in the first quarter of the year, backed by continued policy support by the Central Bank of Nigeria (CBN).
Vestance Nigeria, an agribusiness advisory firm, projects that the exchange rate will trade between N1,650/$1 and N1,750/$1 this year in its Resilience and Recovery for Agribusiness in 2025 outlook report.
“The Central Bank of Nigeria (CBN) will continue implementing reforms to enhance exchange rate market transparency while maintaining higher interest rates to curb inflationary pressures and attract foreign portfolio management,” it said.
Also, the Nigerian currency improved its value against the Pound Sterling by N20.84 to wrap the session at N1,883.59/£1 versus the preceding day’s N1,904.43/£1 and against the Euro, the Nigerian currency gained N10.45 to settle at N1,590.34/€1, in contrast to Thursday’s closing price of N1,600.79/€1.
In the parallel market, the domestic currency appreciated against the greenback by N5 yesterday to sell for N1,675/$1 compared with the N1,675/$1 it was traded a day earlier.
As for the cryptocurrency market, there was profit-taking amid excitement for a new era of crypto-friendly US government mounts ahead of Donald Trump’s inauguration next week.
Crypto investors expect a change from Mr Trump who promised on the campaign trail to position the US as a leader in the crypto space including creating a national stockpile of Bitcoin, in stark contrast to past years’ regulatory crackdowns and enforcements.
Litecoin (LTC) fell by 9.9 per cent to trade at $124.56, Ripple (XRP) slumped by 6.2 per cent to $3.10, Cardano (ADA) dipped by 4.9 per cent to $1.06, Ethereum (ETH) dropped 3.1 per cent to finish at $3,270.61, Binance Coin (BNB) went down by 2.3 per cent to $698.57 and Dogecoin (DOGE) depreciated by 2.2 per cent to $0.3927.
However, Solana (SOL) rose by 8.8 per cent to end at $235.12, Bitcoin (BTC) expanded by 0.8 per cent to $102,494.03, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
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