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 Aduragbemi Omiyale
Stanbic IBTC Nominees Limited has been commended for its critical role in the Nigerian capital market, especially for safely keeping non-pension assets.
For the past 30 years, the company has provided custody services in Nigeria, and to celebrate this milestone, it was honoured with a closing gong ceremony at the Nigerian Exchange (NGX) Limited.
The milestone reflects the institution’s longstanding contribution to investor confidence and the continued development of the nation’s capital market.
Welcoming the organisation to Customs Street, the chief executive of NGX, Mr Jude Chiemeka, commended its three decades of custody services, recognising the firm’s role in strengthening investor confidence and enhancing market safety.
He highlighted NGX’s continued investment in technology, which he said has enabled over 2.6 million active retail investors to trade on the platform.
“Technology continues to be at the heart of our strategy,” Mr Chiemeka said, noting that a vibrant and secure marketplace remains essential to investor participation.
In his remarks, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, thanked NGX for its continued partnership, saying, “We are thrilled to be here today, commemorating not just our journey, but also the remarkable progress made by the NGX.”
He noted that the collaboration between the two institutions has continued to drive innovation, product development and thought leadership across the industry.
“We are dedicated to raising standards within the industry as part of Standard Bank Group. Our focus remains driving the growth and development of Nigeria’s capital market. Indeed, Nigeria is our home, and we drive her growth,” he added.
The chief executive of Stanbic IBTC Nominees, Mr Babatunde Majiyagbe, reflected on the evolution of the business from the era of physical share certificates stored in fireproof vaults to today’s fully dematerialised market, where securities are held electronically.
“We started with holding custody of physical certificates, investing in vaults with fire and dust protection, so those certificates could be presented when needed,” Mr Majiyagbe recalled, noting that while the market has evolved significantly, the commitment to service excellence has remained unchanged.
“What has endeared a lot of investors to the market is that they are dealing with a reputable organisation like ours. We are high on good governance, and high on technology, making the process of investment in Nigeria easier,” he said.
Mr Majiyagbe added that Stanbic IBTC Nominees’ role goes beyond just attracting foreign portfolio investment (FPI) and capital.
“For us, it’s not just about FPI; but also about the value we have delivered over 30 years. Stanbic IBTC Nominees continue to be the eyes and ears of foreign and domestic investors in our market,” he stated.
Mr Majiyagbe added that the firm has also supported the development of market rules and safeguards, noting: “We have, over the years, advocated for growth, change, transformation and stability in our capability to provide services to domestic and foreign portfolio investors continuously.”
The deputy chief executive of Stanbic IBTC Bank and Chairman of Stanbic IBTC Nominees, Mrs Bunmi Dayo-Olagunju, said the next phase of growth will build on the institution’s legacy of trust.
“For 30 years, we’ve delivered growth, security, and client confidence. That’s why investors have stayed with us and why new business keeps coming.
“Our target for this new phase of growth is simple: build on that trust and ride the acceleration in Nigeria’s economic activity.
“With custody, settlement, capital raise, and advisory integrated on one platform, we’re not just a custodian. We’re an infrastructure. We look forward to building on that trust for generations to come, serving both local and international clients. Hopefully, we’ll have another 100 years of maintaining that trust with local and international markets,” Mrs Dayo-Olagunju said.
By Dipo Olowookere
The positive market breadth index recorded by the Nigerian Exchange (NGX) Limited could not save it from further claws of the bears on Friday.
The major performance indicators, the All-Share Index (ASI) and the market capitalisation, depreciated by 0.03 per cent and 0.01 per cent, respectively.
The ASI was down by 78.58 points to 245,283.68 points from the previous day’s 245,362.26 points, and the market capitalisation receded by N14 billion to N158.326 trillion from Thursday’s N158.340 trillion.
Business Post reports that market participants traded 943.0 million equities valued at N46.7 billion in 55,480 deals compared with the 2.1 billion equities worth N230.8 billion transacted in 48,231 deals a day earlier.
This implied that the trading volume shrank by 55.10 per cent, the trading value reduced by 79.77 per cent, and the number of deals surged by 15.03 per cent.
An analysis of the sectoral performance showed that the consumer goods space crashed by 0.60 per cent and the energy index went down by 0.09 per cent.
However, the banking sector improved by 1.90 per cent, the insurance counter expanded by 0.75 per cent, and the industrial goods segment soared by 0.10 per cent.
There were 33 appreciating stocks and 29 depreciating stocks during the last trading session of the week and month of July, indicating bullish investor sentiment despite the poor outcome.
CAP lost 9.97 per cent to trade at N128.25, Veritas Kapital depreciated by 9.49 per cent to N1.43, Vitafoam Nigeria slipped by 7.70 per cent to N179.80, The Initiates dipped by 6.67 per cent to N28.00, and NAHCO crashed by 6.63 per cent to N155.00.
Conversely, Eterna gained 10.00 per cent to sell for N33.00, Consolidated Hallmark also grew by 10.00 per cent to N8.36, McNichols expanded by 9.52 per cent to N5.75, Honeywell Flour increased by 8.96 per cent to N18.25, and First Holdco chalked up 8.00 per cent to quote at N129.55.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its bullish run on Friday, July 31, by 0.99 per cent.
This raised the NASD Security Index (NSI) by 43.54 points to 4,431.71 points from 4,388.17 points, and lifted the market capitalisation by N26.13 billion to N2.659 trillion from N2.633 trillion.
The growth came amid a significant decline in the activity level, as the volume of securities decreased by 73.0 per cent to 690,990 units from 2.6 million units, the value of securities slid by 15.0 per cent to N75.0 million from the preceding session’s N88.3 million, and the number of deals contracted by 31.6 per cent to 26 deals from the 38 deals recorded a day earlier.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc, with a turnover of 3.4 billion units valued at N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.6 million units exchanged for N5.5 billion.
The most active stock by volume on a year-to-date basis was also GNI Plc, with the sale of 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
Investor sentiment was bullish yesterday after a positive market breadth index triggered by five price gainers and two price losers, led by 11 Plc, which gave up N14.99 to close at N225.01 per share versus the previous day’s N240.00 per share, and MRS Oil Plc, which shed N14.55 to settle at N132.00 per unit versus N146.55 per unit.
However, Nipco Plc gained N41.50 to sell at N456.50 per share compared with the preceding session’s N415.00 per share, FrieslandCampina Wamco Nigeria Plc appreciated by N12.93 to N147.93 per unit from N135.00 per unit, Nitrox Industrial Gases Plc improved by N1.00 to N20.00 per share from N19.00 per share, CSCS Plc soared by 54 Kobo to N102.00 per unit from N101.46 per unit, and Industrial and General Insurance (IGI) Plc jumped by 1 Kobo to 50 Kobo per share from 49 Kobo per share.
