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 Adedapo Adesanya
Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.
An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.
Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.
Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.
This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.
The UAE could quickly add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.
The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.
Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.
The war in Yemen broke whatever was left of diplomatic patience.
President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.
The Idemitsu Maru, a Panama-flagged tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.
Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
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