Economy

2021 Budget: Lagos Plans $137m Foreign Loan, N100bn Bond Sale

Published

5 years ago

15/01/2021

By Modupe Gbadeyanka

Last month, the Lagos State Governor, Mr Babajide Sanwo-Olu, signed the 2021 budget into law. He said his administration intends to spend a total of N1.164 trillion in the current fiscal year.

From the N1.164 trillion projected to be spent in 2021, Mr Sanwo-Olu had said N971.02 billion would be sourced from three components; N723.81 billion from Internally Generated Revenue (IGR), N71.81 billion from capital receipts, and N175.40 billion from federal transfer.

Business Post gathered that the N193 billion deficit from the budget would be sourced from borrowings, with N100 billion to be sourced from the capital market, N52 billion ($137 million using an exchange rate of N379/$1) from external sources and N41 billion from internal sources.

The Commissioner for Finance, Mr Rabiu Olowo, during a chat with newsmen in Lagos on Thursday, disclosed that the N100 billion would be raised from the sale of bonds to investors at the nation’s capital market.

This government debt instrument would come in form of a revenue bond and would be used solely for the financing of critical infrastructure and development projects in the metropolis.

Mr Olowo, at the facts-behind-the-figures media budget presentation yesterday, explained that the administration was focused on embarking of projects that would boost the economy of the state.

Last year, several properties belonging to the government and private individuals were destroyed after a peaceful protest by youths calling for an end to police brutality was hijacked by hoodlums.

Lagos was almost completely destroyed and the Governor said a huge amount of money would be needed to rebuild the commercial capital of Nigeria because of the level of the destruction.

This may have informed the decision of Mr Sanwo-Olu to pay more attention to capital projects in the 2021 budget as 60 per cent of the appropriation bill was allocated for capital expenditures, while 40 per cent was earmarked for recurrent expenditures.

With this, out of the N1.164 trillion it plans to spend in the 2021 financial year, the Lagos State government has proposed to use N702.93 billion for capital projects, while N460.58 billion would be used to pay salaries and others.

The Commissioner of Economic Planning and Budget, Mr Sam Egube, while also speaking at the event on Thursday, expressed optimism that the state government would meet its budget target because, in 2020, it achieved a performance of 86 per cent and a revenue generation of 93 per cent.

Recall that last year, the Lagos State government sold bonds worth N100 billion to investors in the capital market for capital projects in the metropolis.

Economy

Berger Paints, Others Crash Stock Exchange by 0.33%

Published

1 day ago

08/11/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited again failed to get out the danger zone on Friday after it further shed 0.33 per cent at the close of transactions.

The woes of the domestic stock exchange was compounded by the sustained weak investor sentiment after finishing with 19 price gainers and 40 price gainers, indicating a negative market breadth index.

Berger Paints lost 10.00 per cent to close at N35.10, C&I Leasing declined by 9.86 per cent to N5.03, MeCure Industries slipped by 9.77 per cent to N27.70, Champion Breweries depleted by 9.72 per cent to N13.00, and The Initiates crashed by 9.66 per cent to N10.75.

Conversely, NCR Nigeria gained 9.94 per cent to finish at N19.35, McNichols grew by 9.82 per cent to N3.02, Eunisell rose by 9.24 per cent to N70.90, Deap Capital jumped by 8.81 per cent to N1.73, and Ellah Lakes surged by 8.29 per cent to N11.75.

Data showed that Wema Bank was the most active stock yesterday, selling 90.9 million units worth N1.7 billion, Consolidated Hallmark traded 78.3 million units valued at N317.3 million, AXA Mansard exchanged 32.4 million units for N430.6 million, Access Holdings sold 23.4 million units worth N511.8 million, and Zenith Bank transacted 22.5 million units valued at N1.4 billion.

At the close of trades, investors bought and sold 527.2 million shares worth N15.4 billion in 24,637 deals compared with 619.6 million shares valued at N16.5 billion in 24,865 deals recorded a day earlier.

This indicated that the trading volume, value, and the number of deals contracted by 14.91 per cent, 6.67 per cent and 0.92 per cent, respectively.

Business Post reports that the insurance space slipped by 2.15 per cent, the banking counter shrank by 0.88 per cent, the consumer goods index fell by 0.47 per cent, the energy industry slumped by 0.25 per cent, and the industrial goods sector depleted by 0.11 per cent, while the commodity segment closed flat.

On the last trading day of the week, the All-Share Index (ASI) decreased by 501.74 points to 149,524.81 points from 150,026.55 points and the market capitalisation contracted by N319 billion to N94.998 trillion from N95.317 trillion.

Economy

Afriland Properties, Air Liquide Buoy NASD OTC Bourse by 0.07%

Published

1 day ago

08/11/2025

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Air Liquide Plc extended the positive run of the NASD Over-the-Counter (OTC) Securities Exchange by a 0.07 per cent on Friday, November 7.

Afriland Properties Plc appreciated by N1.52 during the session to end at N20.73 per unit compared with the previous day’s N19.21 per unit, and Air Liquide Plc rose by 90 Kobo to close at N10.00 per share versus the preceding session’s N9.10 per share.

This raised the market capitalisation of the trading platform by N1.50 billion to N2.190 trillion from the N2.189 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) increased by 2.51 to 3,661.07 points from the 3,658.56 points it ended on Thursday.

The bourse recorded a price loser yesterday and it was Central Securities Clearing System (CSCS) Plc, which fell by 15 Kobo to close at N40.00 per unit, in contrast to the previous day’s N40.15 per unit.

During the trading session, the volume of securities traded by the market participants went down by 57.9 per cent to 197,833 units from the previous day’s 221,284 units, the value of securities decreased by 66.3 per cent to N4.0 million from N11.9 million, while the number of deals went up by 9.1 per cent to 24 deals from 22 deals.

When the market ended for the day, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value with a year-to-date sale of 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 170.3 million units transacted for N8.0 billion, and Air Liquide Plc with 507.4 million units traded for N4.2 billion.

InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units sold for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units worth N419.7 million, and Impresit Bakolori Plc with 536.9 million units transacted for N524.9 million.

Economy

Naira Firms to N1,436.58/$1 at Official Market

Published

1 day ago

08/11/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira appreciated further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, November 7, by 16 Kobo or 0.12 per cent to close at N1,436.58/$1, in contrast to the N1,436.74/$1 it ended a day earlier.

Equally, the Nigerian Naira gained against the Pound Sterling in the official market yesterday by 21 Kobo to finish at N1,882.35/£1 compared with Thursday’s closing price of N1,882.56/£1 and improved against the Euro by 19 Kobo to trade at N1,657.52/€1 compared with the previous day’s N1,657.71/€1.

Once again, the domestic currency retained its previous day’s value of N1,446/$1 at GTBank forex counter, and at the parallel market, it closed flat at N1,450/$1 during the trading day.

The Naira stability is hinged on continued FX interventions from the Central Bank of Nigeria (CBN) and overall investor sentiment which continues to get backing from strong external reserves and expectations of sustained high crude oil prices.

Nigeria’s gross external reserves increased to $43.324 billion as of November 6, up from $43.197 billion at the end of October.

This week, the country saw a 477 per cent oversubscribed Eurobond raise which provided additional support for the local currency outlook as it signifies good foreign investment sentiments on the Nigerian economy.

In the crypto market, there were some gains as investors clawed back after recent losses as economic data suggests a December Federal Reserve rate cut could be very much back on the table.

Amid the government shutdown and lack of official statistics, the University of Michigan Consumer Sentiment Survey released on Friday showed that suggest the central bank might have to re-consider plans not to cut rates again at its final meeting of the year in December.

Litecoin (LTC) added 10.7 per cent to sell at $99.97, Dogecoin (DOGE) expanded by 8.2 per cent to $0.1795, Cardano (ADA) appreciated by 6.6 per cent to $0.5791, Ripple (XRP) gained 4.2 per cent to close at $2.31, Binance Coin (BNB) oared by 2.8 per cent to $993.06, Ethereum (ETH) jumped by 2.8 per cent to $3,445.19, Solana (SOL) increased by 2.3 per cent to $160.36, and Bitcoin (BTC) advanced by 0.5 per cent to $102,371.77, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.