Economy
2017: Kwara Gov. Presents N135.3b Budget
By Modupe Gbadeyanka
Governor Abdulfatah Ahmed of Kwara State on Thursday presented the 2017 budget to the state’s House of Assembly.
Mr Ahmed, in his speech, noted that he plans to spend N135.26 billion in the 2017 fiscal year.
According to him, the 2017 appropriation bill christened ‘Budget of Introspection and Sustenance,’ is anchored on current economic realities and his administration’s determination to look inwards for sustained prosperity and development.
The Governor noted that his government intends to fully exploit the economic potentials of the state by tapping into all potential sources of Internally Generated Revenue (IGR) through the improvement of existing revenue line items while breaking new ground.
However, he maintained that this would be “pursued in a manner that will not inflict hardship on our people.”
Business Post correspondent reports that Mr Ahmed explained to the lawmakers that the 2017 budget is N22.68 billion higher than what was presented in the outgoing 2016 fiscal year, representing 21.2 percent increase.
He also said out of the total budget size, a total sum of N57.5 billion is earmarked for recurrent expenditure, N71 billion is for capital expenditure and a total sum of N6.8 billion is allotted for public debt service, representing 42.5 percent, 52.5 percent and 5 percent of the total budget size respectively.
Moreover, the Governor told the House of Assembly that he intends to fund the 2017 budget through the statutory revenue allocation (FAAC) estimated at N23.8 billion, VAT estimated at N7.5 billion, other sundry revenue estimated at N7.5 billion, refund from London and Paris Club Loans at N10 billion, IGR of N20.3 billion, Capital Development Fund Receipt/Aid & Grants of N52.5 billion and term loan facility from Financial Institutions estimated at N5 billion.
In his speech, the Kwara State Governor said his “commitment to bridge the infrastructure development gap in the state remains unshaken despite the present economic challenges.
“In line with this determination, the state government has devised innovative means of financing the infrastructural projects in the state through the establishment of Kwara Infrastructure Development Fund known as IF-K, in which this Honourable House graciously passed into law recently.
“The fund is sourced from the state’s IGR deduction of N500 million only on a monthly basis. This singular act will free up money for our critical infrastructure and other social related expenditure.
“In addition, we are looking at alternative financing sources for some of our projects through Public Private Partnership in the coming financial year.”
He further disclosed that the 2017 budget proposal is for the promotion of the welfare of Kwarans by enhancing infrastructure, stimulating the socio-economic environment, boosting the informal sector and, by extension, expanding job creation, noting that, “I am aware that this year has been a difficult one for individuals, families and businesses in Kwara State.”
“I am determined that despite the current challenges, and based on the proposals I am presenting today, we will be able to put food on more tables, money in more pockets and more people in employment this coming year,” Mr Ahmed assured.
He said, “The 2017 budget is generally designed to diversify the production and revenue base of the state economy to deliver inclusive growth, infrastructural development, job creation and social intervention programs for the poor and vulnerable groups.”
Mr Ahmed promised to reduce the cost of governance and be prudent in the utilization of available resources in critical areas to help his administration achieve its goals for 2017 fiscal year.
By Adedapo Adesanya
Okitipupa Plc was the sole price gainer at the NASD Over-the-Counter (OTC) Securities Exchange on Friday, August 7, lifting the trading platform by 0.44 per cent at the close of transactions.
The share price of the palm oil producer appreciated during the trading session by N25.00 or 9.0 per cent to N277.00 per unit compared with the previous day’s N252.00 per unit.
As a result, the market capitalisation gained N12.29 billion to close at N2,807 trillion, in contrast to the previous session’s N2.795 trillion, while the NASD Security Index (NSI) added 93.63 points to finish at 4,678.08 points compared with Thursday’s 4,657.59 points.
The bourse recorded a price loser yesterday, and this was Mass Telecoms Innovation Plc, which crashed by 3 Kobo or 9.4 per cent to settle at 32 Kobo per share versus the previous day’s 35 Kobo per share.
The volume of securities traded by investors plunged by 81.5 per cent to 535,7560 units from 2.9 million units, the value of securities slumped by 93.9 per cent to N6.0 million from N99.2 million, and the number of deals decreased by 41.9 per cent to 36 deals from 62 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 77.0 million units exchanged for N5.5 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Dipo Olowookere
A 0.15 per cent growth was achieved by the Nigerian Exchange (NGX) Limited, driven by continued buying interest in banking stocks such as First Holdco and others.
The banking index was up by 1.53 per cent during the session, offsetting the losses recorded by the others. The industrial goods segment fell by 0.37 per cent, the insurance counter shrank by 0.21 per cent, and the energy sector contracted by 0.04 per cent, while the consumer goods space closed flat.
At the close of business, the All-Share Index (ASI) moved up by 364.26 points to 245,573.60 points from 245,209.34 points, and the market capitalisation increased by N235 billion to N158.513 trillion from N158.278 trillion.
Despite the gains printed by Customs Street during the trading day, investor sentiment was weak, as there were 22 price gainers and 24 price losers, indicating a negative market breadth index.
UPDC surged by 9.23 per cent to N3.55, CWG soared by 6.56 per cent to N19.50, AXA Mansard appreciated by 4.80 per cent to N13.10, Neimeth advanced by 4.24 per cent to N8.60, and Cutix improved by 4.00 per cent to N2.60.
Conversely, Red Star Express lost 10.00 per cent to trade at N18.00, CAP declined by 9.98 per cent to N115.45, John Holt shrank by 9.82 per cent to N10.10, ABC Transport depreciated by 9.57 per cent to N5.20, and Legend Internet crashed by 8.70 per cent to N4.20.
A total of 1.5 billion equities worth N26.7 billion exchanged hands in 42,580 deals on Friday versus the 531.8 million equities valued at N20.5 billion traded in 44,826 deals on Thursday, representing a spike in the trading volume, value, and number of deals by 182.06 per cent, 30.24 per cent, and 5.01 per cent, respectively.
The busiest stock during the session was Fortis Global Insurance, with a turnover of 824.5 million units valued at N2.1 billion, FCMB traded 217.9 million units worth N2.8 billion, Access Holdings exchanged 176.2 million units for N4.7 billion, Chams sold 32.5 million units worth N132.1 million, and First Holdco transacted 25.0 million units valued at N3.7 billion.
By Adedapo Adesanya
The Naira further closed south against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, August 7, by 81 Kobo or 0.06 per cent to N1,365.69/$1 from N1,364.88/$1.
It was a similar situation for the Nigerian Naira in the official market during the session as against the Pound Sterling; it lost N1.08 to quote at N1,839.17 versus the previous day’s N1,838.09/£1, and against the Euro, it slipped by N1.23 to close at N1,575.73/€1, in contrast to the preceding session’s N1,574.80/€1.
Further, at the GTBank forex counter, the Nigerian currency weakened against the Dollar yesterday by N2 to settle at N1,371/$1 compared with Thursday’s N1,369/$1, and at the black market, it traded flat at N1,400/$1.
The country’s legal tender came under FX demand pressure on Friday, with turnover rising by 304.3 per cent to $399.5 million from $98.8 million the previous day, with the number of deals slightly up to 107 from 106.
Next week, traders expect the Naira to hold steady, buoyed by dollar sales by the Central Bank of Nigeria (CBN), whose presence in the market could help ease demand pressure.
As for the cryptocurrency market, Bitcoin (BTC) neared the $65,000-mark after it gained 0.8 per cent to trade at $64,968.05, as investors took advantage of recent drops to shore up their holdings.
Previously, the decision by the US Senate to delay a vote on the Crypto Clarity Act until at least September weakened the outlook. The bill, which would set out which US regulator oversees which digital assets, needs 60 votes to pass and it is unclear whether it currently has 50.
Solana (SOL) grew by 2.5 per cent to $74.81, Dogecoin (DOGE) rose by 1.3 per cent to $0.0702, Binance Coin (BNB) jumped by 1.1 per cent to $593.80, Ethereum (ETH) expanded by 0.5 per cent to $1,916.08, Ripple (XRP) also soared by 0.5 per cent to $1.03, and TRON (TRX) appreciated by 0.2 per cent to $0.3275.
However, Cardano (ADA) depreciated by 1.0 per cent to $0.1997, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
