Economy
Doherty Seeks Clarification on Lagos Budgetary Allocations
By Adedapo Adesanya
The Lagos State gubernatorial candidate of the African Democratic Congress (ADC) at the 2023 elections, Mr Funso Doherty, has raised issues relating to certain allocations made in the 2023 budget.
Among some of the claims, published in a well-researched document shared on X on Saturday, were revelations of N571 to renovate a church, N400 million for a charter plane, N440 million for SUVs, and N7 million for diffusers, among other items recently approved for procurement.
In the open letter seen and analysed by Business Post, he highlighted some of the procurements in the second and third quarters of 2023, adding that he expects the state government to review and explain to the public the structure of the budgetary allocation.
“I have had the opportunity to go through the register of public procurement awards by LASG, its Ministries, Departments and Agencies (MDAs) for the second and third quarters of 2023, as reported by the Public Procurement Agency. This attached schedule highlights selected awards which, in my opinion, require greater scrutiny,” he wrote in the letter.
He listed some of the following luxuries allocated in the budget, saying “Under the office of the Chief of Staff, procurement of a brand-new Lexus LX 600 bulletproof sport utility vehicles for use in the pool of office of Chief awarded for the total sum of N440,750,000.
“Replacement of liquid fragrance in the office of Mr Governor, Lagos house Ikeja awarded for the sum of N7,475,000.
“In addition, Decorations for the venue of political delegates for the sum of N20,084,550
“Flying hours expenses for ad-hoc Charter plane by Lagos State Government awarded for the sum of N400,000,000.”
Mr Doherty, who is a chartered accountant by profession, demanded that the government accounts for how it spent the exorbitant sum of N69.9 billion to repair an existing road linking Eti Osa/Lekki Expressway.
“N69,936,201,915 allocated for rehabilitation, reconstruction and upgrade of Eti Osa/Lekki Epe Expressway (phase b) from Greensprings to Abraham Adesanya in Eti Osa and Ibeju-Lekki LGA.
“This single award for the repair and upgrade of a section of an already existing road amounts to approximately half of the entire 2023 budget for the Ministry of Works and Infrastructure. A comprehensive and preferably independent value-for-money should be done for this contract,” he added.
In addition, Mr Doherty also tasked the government to explain the N70 billion allocated for the construction of Lagos Rail Mass Transit (LRMT) commuting from Mile 2 to Okokomaiko in 2008.
According to him, this project was supposed to be completed in 2011, but it was only partially completed until 2023.
He also tasked the government to evaluate the N218 billion now allocated for phase 2 of the construction.
In his words, “In 2008, N70 billion was approved for the blue line and it was expected to be completed by 2011. Phase 1 of the project, Marina to Mile 2, which is approximately half of the length of the total project, has just recently commenced limited operation in 2023. The overall cost so far has not been disclosed.
“With this award of Phase 2 by the Lagos State Government to the same contractor (China Civil Engineering Construction Company Nigeria Limited), at the cost of N218 billion, what safeguards are in place to prevent a repeated occurrence?”
Business Post found that some of the companies that were awarded these contracts were formed between six months ago and five years ago with inactive status on the Corporate Affairs Commission (CAC) website.
This development raises questions about the extravagant spending of Nigeria’s richest state and issues on transparency and accountability when it comes to spending taxpayers’ money.
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has disclosed that seven additional insurance companies have secured full recapitalisation approval from the National Insurance Commission (NAICOM), bringing the industry-wide recapitalisation exercise to a successful conclusion.
In a statement on Friday, NIA Chairman, Mrs Ebelechukwu Nwachukwu, said the milestone represented significant progress towards building a stronger, more competitive and trusted insurance market in Nigeria.
She said the seven companies, alongside the 41 insurance companies and two reinsurance companies earlier approved, had demonstrated resilience, financial discipline and corporate strength by successfully completing the final verification process.
“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude, and financial discipline,” Mrs Nwachukwu said.
She added that the successful recapitalisation had positioned the companies to deliver greater value to policyholders and contribute to deeper insurance penetration nationwide.
Mrs Nwachukwu commended NAICOM for its regulatory oversight during the exercise, describing the commission’s approach as fair, structured and focused on strengthening market integrity.
“NAICOM’s strategic foresight and structured execution have elevated the Nigerian insurance industry, reinforcing its position within the broader financial sector as a substantially stronger, highly resilient, and globally competitive market,” she said.
The NIA chairman reaffirmed the association’s commitment to supporting insurance companies as they adapt to new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She said the association would continue to work with NAICOM to promote a sustainable and future-ready insurance sector.
Mrs Nwachukwu also assured policyholders, investors and other economic stakeholders that the recapitalised industry was better positioned to support economic growth.
“With this recapitalization complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.
By Aduragbemi Omiyale
Capital market operators have been directed to immediately freeze the assets, funds, and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
This directive was given by the Securities and Exchange Commission (SEC) via a circular to all Capital Market Regulated Entities (CMREs), warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
It said violations could attract regulatory sanctions, including fines, suspension of operations or revocation of registration, reminding capital market operators that all unusual or suspicious transactions must be promptly reported to the NFIU.
The regulator, which stated that the designations were made in line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, listed the six individuals as Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim. The three designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajama was listed on June 18, 2026, for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP), while Usman was designated for providing material support to a designated terrorist organisation through repeated financial transactions.
The commission said Abubakar was listed for involvement in terrorism financing and membership of ISWAP, while Chiroma was designated for allegedly using Bureau De Change (BDC) operations and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15, 2026, for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell, while Ibrahim was designated for providing material and financial support to the ISWAP Kogi cell.
The SEC said the three entities were listed for their alleged involvement in facilitating and channelling funds connected to the ISWAP Okene financing network.
The commission directed CMREs to immediately identify and freeze, without prior notice, all funds, assets and other economic resources in their possession belonging to the designated persons and entities.
They are also required to report frozen assets and other compliance actions, including attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.
In addition, the SEC directed regulated entities to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities.
It further instructed operators to report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after receipt of the sanctions list.
The regulated entities are also required to prohibit dealings with the designated persons and entities and continue monitoring for transactions involving them.
The SEC said any findings should be reported to the Nigeria Sanctions Committee through its designated reporting channel.
By Adedapo Adesanya
Dangote Sugar Refinery Plc, Nigeria’s biggest sugar producer, has raised N486 billion ($356 million) through an oversubscribed rights issue as the company moves to reduce its debt burden and strengthen its capital base after three consecutive years of losses.
The company, founded by Mr Aliko Dangote, raised the funds through the issuance of 8.1 billion ordinary shares at N60 per share, according to a filing with the Nigerian Exchange (NGX) Limited on Friday.
The development follows shareholders’ approval of the capital-raising plan at the company’s 20th Annual General Meeting held in April.
In a statement signed by the Company Secretary, Mr Temitope Hassan, the sugar firm said the rights issue is part of efforts to improve its financial position and provide funding to support its long-term growth plans.
The company’s directors are authorised to raise up to N500 billion through a rights issue, on terms and at a time to be determined by the Board.
Dangote Sugar increased its share capital to accommodate the new shares issued under the rights issue. The sugar producer’s board also authorised to allot the shares and the management of any fractional holdings in accordance with regulatory requirements.
The organisation said any shares remaining unallotted after the offer would be cancelled as permitted by law, describing the capital raise as one of the largest rights issues in Nigeria’s corporate history.
The capital raise comes against the backdrop of improved revenue performance but continued losses at the company.
In its 2025 audited results, Dangote Sugar recorded a 24.56 per cent increase in revenue to N829.2 billion, compared with the previous year. The growth was driven largely by strong demand for 50kg sugar, which generated N807 billion in revenue.
Retail sugar sales contributed N17.7 billion, while molasses and freight income generated N4.02 billion and N66.4 million, respectively.
Cost of sales increased by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion. This resulted in a gross profit of N122.6 billion.
Despite the improvement in revenue and gross profit, the company recorded a pre-tax loss of N72.2 billion in 2025, although this represented a significant improvement from the N270.8 billion loss reported in 2024.
Lagos remained the company’s largest market, accounting for 55.82 per cent of regional sales, followed by the North with 35.35 per cent, the West with 6.45 per cent and the East with 2.38 per cent.
The fresh capital is expected to provide Dangote Sugar with additional financial capacity as it works to reduce its debt obligations, strengthen its balance sheet and advance its long-term expansion plans.
