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 Adedapo Adesanya
The United Arab Emirates has announced its decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) to focus on national interests.
This dealt a heavy blow to the oil-exporting group at a time when the US-Israel war on Iran had caused a historic energy shock and rattled the global economy.
The move, which will take effect on May 1, 2026, reflects “the UAE’s long-term strategic and economic vision and evolving energy profile”, a statement carried by state media said on Tuesday.
“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it added. “However, the time has come to focus our efforts on what our national interest dictates.”
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the oil cartel, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power’s energy strategies.
“This is a policy decision. It has been done after a careful look at current and future policies related to the level of production,” the minister said.
OPEC’s Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas supplies normally pass, because of threats and attacks against vessels during the war.
The UAE had been a member of OPEC first through its emirate of Abu Dhabi in 1967 and later when it became its own country in 1971.
The oil cartel, based in Vienna, has seen some of its market power wane as the US has increased its production of crude oil in recent years.
Additionally, the UAE and Saudi Arabia have increasingly competed over economic issues and regional politics, particularly in the Red Sea area.
The two countries had joined a coalition to fight against Yemen’s Iran-backed Houthis in 2015. However, that coalition broke down into recriminations in late December when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc bested four price decliners on the NASD Over-the-Counter (OTC) Securities Exchange on Monday, April 27. The alternative stock market opened the week bullish during the session with a 0.03 per cent uptick.
According to data, the security depository company added N2.61 to its share price to close at N76.26 per unit compared with the preceding session’s N78.87 per unit.
As a result, the market capitalisation of the platform increased by N820 million to N2.425 trillion from N2.424 trillion, and the NASD Unlisted Security Index (NSI) gained 1.38 points to finish at 4,053.97 points compared with the 4,052.58 points it ended last Friday.
The four price losers were led by NASD Plc, which slumped by N3.80 to sell at N34.70 per share versus N38.50 per share. FrieslandCampina Wamco Nigeria Plc fell by N1.45 to N98.10 per unit from N99.55 per unit, Food Concepts Plc slid by 27 Kobo to N2.43 per share from N2.70 per share, and Geo-Fluids Plc dipped by 9 Kobo to N2.91 per unit from N3.00 per unit.
The value of securities transacted by market participants went down by 82.0 per cent to N7.4 million from N41.3 million units, the volume of securities declined by 28.5 per cent to 319,831 units from 447,403 units, and the number of deals dropped by 34.1 per cent to 29 deals from 44 deals.
Great Nigeria Insurance (GNI) Plc was the most active stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 59.6 million units sold for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Also, GNI Plc was the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Resourcery Plc with 1.1 billion units traded for N415.7 million, and Infrastructure Guarantee Credit Plc with a turnover of 400 million units worth N1.2 billion.
By Adedapo Adesanya
The first trading day of the week in the currency market was bearish for the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 27.
Yesterday, it lost N5.80 or 0.43 per cent against the United States Dollar to trade at N1,364.24/$1, in contrast to the N1,358.44/$1 it was traded last Friday.
In the same vein, the Nigerian currency depreciated against the Pound Sterling in the official market by N13.70 to close at N1,847.72/£1 versus the preceding session’s N1,834.02/£1, and slumped against the Euro by N11.56 to sell at N1,602.29/€1 versus N1,590.73/€1.
Also, the Nigerian Naira tumbled against the greenback during the trading day by N5 to quote at N1,385/$1 compared with the previous rate of N1,380/$1, and at the GTBank FX desk, it traded flat at N1,370/$1.
The poor performance of the domestic currency could be attributed to liquidity shortage at the official currency market on Monday, which came amid surging demand for international payments. At $76.50 million, interbank liquidity printed higher across 79 deals, up from the $43.572 million reported on Friday.
Nigeria’s gross external reserves declined to $48.45 billion amid a month-long decline in inflows, amid uncertainties in the global commodity market. The depletion of foreign reserves could be partly attributed to the Central Bank of Nigeria’s intervention in the FX market.
The market remains perturbed by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market, while boosters, including oil prices, continue to look rocky due to stalled discussions and unclear ceasefire negotiations between the US and Iran.
A look at the cryptocurrency market, Bitcoin (BTC) has been rejected near $79,000 three times in eight sessions, leaving the level as the de facto ceiling of its current trading range even as major cryptocurrencies trade lower over the past day. It lost 0.9 per cent to sell at $77,003.61.
Analysts say that upcoming US Federal Reserve policy decisions and top tech firms’ earnings this week could provide the catalyst to push bitcoin decisively above $80,000.
The market also continued to weigh Iran’s interim deal proposal to reopen the Strait of Hormuz, which failed to advance over the weekend. The White House said US officials were discussing the latest Iranian proposal but maintained “red lines” on any deal to end the eight-week war.
Solana (SOL) dropped 1.8 per cent to $84.25, Ripple (XRP) went down by 1.6 per cent to $1.39, Ethereum (ETH) depreciated by 1.3 per cent to $2,290.00, Binance Coin (BNB) declined by 0.5 per cent to $625.18, and Cardano (ADA) fell by 0.2 per cent to $0.2480.
However, Dogecoin (DOGE) rose by 2.0 per cent to $0.1002, and TRON (TRX) appreciated by 0.2 per cent to $0.3242, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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