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 duo of 11 Plc and Central Securities Clearing System (CSCS) Plc helped flip the NASD Over-the-Counter (OTC) Securities Exchange from a three-day losing streak to a 0.27 per cent gain on Thursday, August 13.
11 Plc, which used to be known as Mobil Nigeria, garnered N22.28 to close at N245.03 per unit compared with the preceding day’s N222.75 per unit, and CSCS Plc appreciated by N3.76 to N109.76 per share from N106.00 per share.
The gains offset the N10.00 loss recorded by FrieslandCampina Wamco Nigeria Plc, closing at N160.00 per unit compared with N170.00 per unit it finished at midweek.
When the bourse closed for the day, the market capitalisation increased by N7.31 billion to N2.727 trillion from N2.720 trillion, and the NASD Security Index (NSI) went up by 12.17 points to 4,544.20 points from 4,532.03 points.
Yesterday, the volume of securities exchanged by investors skyrocketed by 1,173.8 per cent to 1.9 million units from 150,340 units, the value of securities jumped by 1,029.5 per cent to N210.8 million from N18.7 million, and the number of deals soared by 6.3 per cent to 34 deals from 32 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 79.1 million units exchanged for N5.7 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for 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.
By Adedapo Adesanya
The Naira-US Dollar exchange rate remained unchanged in the black market segment of the foreign exchange (FX) market on Thursday, August 13, at N1,395/$1.
But at the GTBank forex desk, the Nigerian currency gained N3 against the greenback during the session to settle at N1,367/$1, in contrast to Wednesday’s rate of N1,370/$1.
Similarly, the local currency further appreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) yesterday by N2.93 or 0.22 per cent to trade at N1,357.65/$1 compared with the previous day’s N1,360.58/$1.
Equally, the Nigerian Naira improved its value against the Pound Sterling at the official market by N6.94 to quote at N1,834.05, in contrast to the preceding session’s N1,840.99/£1, and against the Euro, it firmed up by N5.01 to close at N1,567.00/€1 versus Wednesday’s N1,572.01/€1.
Data from the Central Bank of Nigeria (CBN) revealed that interbank FX transactions plunged by 53 per cent to $79.097 million from $168.758 million, as banks recorded a sharp cutback in customers’ US dollar demand, with the number of deals down to 98 from 190.
The apex bank announced the removal of restrictions preventing financial institutions that accessed its Standing Lending Facility (SLF) from participating in primary government securities transactions and FX.
Under a revised framework, institutions that accessed the CBN’s discount window will no longer lose access to the facility because of their participation in the NAFEM or primary auctions of government securities.
As for the cryptocurrency market, prices fell as the expected US inflation report failed to push the asset beyond its established trading range.
The US Bureau of Labour Statistics reported that headline inflation rose 0.1 per cent month over month in July and slowed to 3.4 per cent annually from 3.5 per cent in June. Core CPI, which excludes food and energy, increased 0.2 per cent during the month and 2.5 per cent from a year earlier.
Cardano (ADA) lost 1.3 per cent to close at $0.1821, TRON (TRX) also shrank by 1.3 per cent to $0.3335, Solana (SOL) fell by 1.0 per cent to $75.60, Dogecoin (DOGE) also declined by 1.0 per cent to $0.06981, Bitcoin (BTC) dropped 0.9 per cent to sell at $63,152.59, Ethereum (ETH) dipped by 0.8 per cent to $1,877.07, Binance Coin (BNB) slumped by 0.7 per cent to $608.42, and Ripple (XRP) depreciated by 0.5 per cent to $1.00, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
Weak investor sentiment further crumbled Nigeria’s stock exchange by 0.39 per cent on Thursday, as sell-offs persisted.
Data showed that all the major sectors of the Nigerian Exchange (NGX) Limited ended in the red, with the consumer goods index down by 1.22 per cent. The industrial goods space retreated by 0.75 per cent, the insurance segment depreciated by 0.55 per cent, the banking sector tumbled by 0.27 per cent, and the energy counter receded by 0.07 per cent.
At the close of business, the All-Share Index (ASI) went down by 949.71 points to 243,017.38 points from 243,967.09 points, and the market capitalisation dipped by N613 billion to N156.881 trillion from N157.494 trillion.
Unilever Nigeria led the losers’ chart after it depleted by 9.97 per cent to N118.30, Chellarams dropped 9.66 per cent to close at N10.75, NDIF slumped by 9.55 per cent to N147.70, DAAR Communications crashed by 9.25 per cent to N1.57, and Cornerstone Insurance slipped by 9.09 per cent to N5.00.
On the flip side, International Energy Insurance topped the gainers’ log after it grew by 10.00 per cent to N4.84, John Holt expanded by 9.89 per cent to N10.00, Trans-Nationwide Express rose by 9.75 per cent to N2.59, SUNU Assurances gained 8.48 per cent to settle at N3.58, and NEM Insurance appreciated by 6.25 per cent to N34.00.
Business Post reports that there were 16 appreciating stocks and 41 depreciating stocks, representing a negative market breadth index.
Yesterday, 4.2 billion equities worth N50.7 billion were transacted in 41,454 deals versus the 1.5 billion equities valued at N20.9 billion that exchanged hands in 39,085 deals at midweek.
This indicated that the trading volume, value, and number of deals surged by 180.00 per cent, 142.58 per cent, and 6.06 per cent, respectively.
Cornerstone Insurance was the busiest equity on Thursday, with a turnover of 3.6 billion units valued at N18.4 billion, VFD Group exchanged 151.8 million units worth N1.9 billion, Chams sold 33.8 million units for N153.7 million, First Holdco transacted 28.3 million units worth N3.9 billion, and CMFC traded 24.6 million units valued at N78.2 million.
