Economy
2018 Budget Contains No Suspicious Items—FG
By Dipo Olowookere
Federal Government has rubbished claims by some commentators in the country that the 2018 appropriation bill contains suspicious items embedded in it.
According to the Ministry of Budget and National Planning, items in the budget were well conceived and provided for by the respective MDAs.
It was alleged that some line items and projects in the budget are suspicious, but a statement issued by Mr Akpandem James, Special Adviser on Media to the Minister of Budget and National Planning, Mr Udoma Udo Udoma, said such claims are not true.
He pointed to some of the items like N10 billion for settlement of liabilities to contractors; N22.6 billion for Research and Development; N308.42 billion for procurement of riot control equipment for police formations; N2.21 billion for Social Media Mining Suite by the Department of State Security Services and N338 million for computer software acquisition in the Federal Ministry of Finance, which were termed as suspicious by BudgIT, a civil society organization (CSO) active in the budget space, and said they are genuine provisions which have been explained by the relevant MDAs.
The statement said for instance, it is a common knowledge that the Federal Government owes many contractors for certified works dating back as far as 10 years. Thus, provisions are made in the annual budgets to offset some of these contractor liabilities.
A good portion of these debts, the Minister said, is domiciled in the Federal Ministry of Power, Works and Housing, and so the Ministry made a provision of N10 billion in the 2018 Budget Proposal for settlement of liabilities.
The statement said in the Government Integrated Finance & Management Information System (GIFMIS), Research and Development is a programme description that encapsulates various projects. In this case, a check of the budget of the Federal Ministry of Industry, Trade & Investment will show that this includes the N19.3 billion for the Export Expansion Grant (EEG).
For several years the EEG scheme was suspended on account of its dubious outcomes. However in its bid to incentivise non-oil exports, the FG reformed and reinstated the scheme with effect from 2017, the statement explained.
It noted that the budgetary provision for this scheme will therefore be recurrent, year after year. Indeed, as the non-oil sector picks up, the amount of provision is expected to increase.
On the issue of N308 million for procurement of riot control equipment for police formations and the Force Head Quarters, the Ministry explained that there are 37 State Police Commands (FCT inclusive) and the Force Headquarters. This amount is less than N10 million per state police HQ.
“Nigeria is yet to attain the UN ratio requirement of one police officer to 400 citizens of a country, thus this sort of provision is to help the already stretched force to keep up with the expectation of keeping law and order during protests or matches which are the basic tenets of the freedoms allowed in a democracy.
“It is acknowledged the world over that matters of national security are treated with some degree of confidentiality.
“The project code-name, ‘Cleaning and fumigation services’ was adopted by the office of the National Security Adviser based on the available drop-down menu on the Budget Preparation Subsystem of the GIFMIS.
“However, the office of the National Security Adviser during the budget bilateral discussion provided information on the specific items of expenditure covered by the code name,” it said.
On the N2.21 billion for Social Media Mining suite by the Department of State Security Services (DSS), the Ministry explained that the agency plans to implement some security protocols to curtail spread of information capable of threatening national security.
This is it said by no means to hinder freedom of speech or expression as these will not be tampered with in as much as it is within the ambit of the law.
It explained that the N338 million in the budget for computer software acquisition in the Federal Ministry of Finance is basically to fund some ICT solutions/initiatives for improving financial management within the Federal Ministry of Finance.
For the N4.9 billion for annual maintenance of mechanical/electrical equipment in the Villa, the Minister said it must be noted that the Villa is quite an expansive complex comprising several offices, residences and other relevant support facilities.
“This provision is made to ensure that the equipment is maintained in top form at all times, and for several of these there are standard maintenance contracts,” he said.
The Ministry therefore explained that there is nothing suspicious about any of the provisions in the 2018 budget.
“It is however not unusual for some items in the Budget to require further clarifications or explanations.
That is why the Ministry made provision for a Citizens’ Portal on the website of the Budget Office for interaction and feedback purposes.
“Commentators are therefore advised to make use of the facility for clarifications on budget matters,” the statement said.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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