Economy
Oyo Proposes to Spend N294.5bn in 2022, Targets N79.8bn IGR
By Aduragbemi Omiyale
On Wednesday, September 29, 2021, the Oyo State Governor, Mr Seyi Makinde, submitted the budget proposal for the 2022 fiscal year to the state’s House of Assembly in Ibadan, the state capital.
While presenting the document to the lawmakers, the Governor said his administration plans to spend a total of N294.5 billion in the financial year.
According to him, the N294.5 billion budget represents an 18.3 per cent reduction over the amended 2021 budget, noting that the capital expenditure stands at N156 billion, representing 52.97 per cent, while recurrent expenditure takes N138.5 billion, amounting to 47.03 per cent.
He said the budget, christened Budget of growth and opportunities, was put in place to move the state from poverty to prosperity, noting that funds for the 2022 budget would be sourced from internally generated revenue, statutory allocations, and capital receipts.
He said the state looks to generate N79.8 billion as IGR in the year, adding that though the projection was a tall order, his administration plans to achieve it without increasing tax.
However, he disclosed that the state intends to inject the sum of N156 billion into the economy through investments in infrastructure and by ensuring that “our people have higher purchasing power.”
“For the first time, our proposed capital expenditure at 52.97 per cent is more than our recurrent expenditure. A major project we will be carrying out in 2022 is 110km Ibadan Circular Road. This tolled road will be a major economic boost as it will create an alternate entry and exit point out of Ibadan and connect the new economic corridor and business district, we are building at Moniya,” he added.
Mr Makinde informed the state legislative arm of government that in the year, infrastructure will gulp N96.6 billion, amounting to 32.83 per cent of the fiscal spending, while the education sector will take N54.1 billion, amounting to 18.37 per cent.
He further disclosed that the health sector is to get the sum of N17.4 billion, amounting to 5.9 per cent, while agriculture will get N11.3 billion, representing 3.84 per cent.
He told the lawmakers that his administration last year promised to continue to invest in infrastructure, adding that such investments were not only evenly distributed, they also cut across the thematic aspects of his administration spanning the four-point service agenda.
“We have worked hard to ensure that infrastructural development is not restricted to just one zone of the state. In education, we have continued to make investments at all levels. At the primary level, we completed 26 model schools across all zones in Oyo State, built 57 classrooms, installed boreholes, and improved the sanitary condition of existing schools through the construction of toilets.
“We have also continued to improve the quality of education in Oyo State. We not only recruited teachers as reported, but we have also trained them on best practices. More recently we completed the recruitment of 692 education officers in the state,” he said.
“On Security, we have made provision to recruit more Amotekun Corps members and we will continue to make an investment in technology that supports our security architecture in Oyo State,” the Governor stated.
However, Governor Makinde admitted that, “There is still so much more that needs to be done. We are aware of the complaints of our people regarding roads in Oyo State.”
“We are determined to meet their yearnings for high-quality infrastructure in the state and that is why we continually embark on road rehabilitation and reconstruction. In the immediate, we are carrying out palliative works on these roads,” he assured.
While giving details of the performance of the 2021 budget, Mr Makinde said that budget performance had reached 60 per cent despite the fact that there are three more months to the end of the fiscal year, expressing hopes of raising the performance to 75 per cent.
In his remarks, the Speaker of the Oyo State House of Assembly, Mr Adebo Ogundoyin, said that the presentation of the 2022 budget will spur lawmakers to redouble their efforts in terms of oversight functions and project monitoring.
According to him, the timely presentation of the 2022 budget will also ensure that the legislature completes work on it well before the end of the 2021 fiscal year. He added that the development would help the state keep to the January to December Budget circle.
“Let me state categorically that the budget proposal is not new to us because we have been part of the process at all levels. We are equally convinced that the governor has articulated all the requests and demands of our people based on the outcome of the stakeholders’ consultative meetings on the 2022 budget, held across the State.
“Expectedly, the four cardinal pillars upon which this administration places its development agenda, viz: Education, Health, Economy (driven by Agribusiness), and Security are steadily being pursued and realised,” he said.
The Speaker commended the Governor for working to grow the IGR of the state, adding that the assembly would do everything possible to ensure the checks and balances crucial for achieving a transparent, accountable, and prudent government.
He also requested that the governor assents to the Legislative Fund Management Law which has been passed by the assembly, adding that states that have assented to the law include Adamawa, Sokoto, Zamfara, Plateau, Delta, Ekiti, and Ondo.
“Once it is assented to by you, we will be able to implement Consolidated Legislative Salary Structure (CONLESS) which is a uniform salary structure for all the State Houses of Assembly,” the Speaker said, adding that some states of the federation are already implementing the consolidated legislative salary structure.
“States like Rivers, Kaduna, Nasarawa, Plateau, Sokoto, Bayelsa, Delta, Adamawa, and Lagos are already paying their Legislative staff using CONLESS salary structure. In Oyo State, the Judiciary workers have also been enjoying their Consolidated Judiciary Salary Structure (CONJUSS). We do not want to be an exception,” he appealed.
By Dipo Olowookere
The local stock market firmed up by 1.13 per cent on Friday as appetite for Nigerian stocks remained strong.
Investors reacted well to the 2026 budget presentation of President Bola Tinubu to the National Assembly yesterday, especially because of the more realistic crude oil benchmark of $64 per barrel compared with the ambitious $75 per barrel for 2025. This year, prices have been between $60 and $65 per barrel.
Business Post observed profit-taking in the commodity and energy sectors as they respectively shed 0.14 per cent and 0.03 per cent.
But, bargain-hunting in the others sustained the positive run, with the consumer goods index up by 3.82 per cent.
Further, the industrial goods space appreciated by 1.46 per cent, the banking counter improved by 0.08 per cent, and the insurance industry gained 0.04 per cent.
As a result, the All-Share Index (ASI) increased by 1,694.33 points to 152,057.38 points from 150,363.05 points and the market capitalisation chalked up N1.080 trillion to finish at N96.937 trillion compared with Thursday’s closing value of N95.857 trillion.
A total of 34 shares ended on the advancers’ chart, while 24 were on the laggards’ log, representing a positive market breadth index and bullish investor sentiment.
Austin Laz gained 10.00 per cent to close at N2.42, Union Dicon also jumped 10.00 per cent to N6.60, Tantalizers increased by 9.80 per cent to N2.69, Aluminium Extrusion improved by 9.78 per cent to N12.35, and Champion Breweries grew by 9.71 per cent to N16.95.
Conversely, Sovereign Trust Insurance dipped by 7.42 per cent to N3.87, Royal Exchange lost 6.84 per cent to trade at N1.77, Omatek slipped by 6.84 per cent to N1.09, Eunisell depreciated by 5.88 per cent to N80.00, and Eterna dropped 5.63 per cent to close at N28.50.
Yesterday, traders transacted 1.5 billion units worth N21.8 billion in 25,667 deals compared with the 839.8 million units sold for N32.8 billion in 23,211 deals in the preceding session, showing a surge in the trading volume by 76.61 per cent, an uptick in the number of deals by 10.58 per cent, and a shrink in the trading value by 33.54 per cent.
By Adedapo Adesanya
Three stocks stretched the bearish run of the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Friday, December 19, with the market capitalisation giving up N26.01 billion to close at N2.121 billion compared with the N2.147 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropping 43.47 points to 3,546.41 points from 3,589.88 points.
The trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and NASD Plc overpowered the gains printed by four other securities.
FrieslandCampina Wamco Nigeria Plc lost N6.00 to sell at N54.00 per unit versus N60.00 per unit, NASD Plc shrank by N3.50 to N58.50 per share from N55.00 per share, and CSCS Plc depleted by N2.91 to N33.87 per unit from N36.78 per unit.
On the flip side, Air Liquide Plc gained N1.01 to close at N13.00 per share versus N11.99 per share, Golden Capital Plc appreciated by 70 Kobo to N7.68 per unit from N6.98 per unit, Geo-Fluids Plc added 39 Kobo to sell at N5.50 per share versus N5.11 per share, and IPWA Plc rose by 8 Kobo to 85 Kobo per unit from 77 Kobo per unit.
During the trading day, market participants traded 1.9 million securities versus the previous day’s 30.5 million securities showing a decline of 49.3 per cent. The value of trades went down by 64.3 per cent to N80.3 million from N225.1 million, but the number of deals jumped by 32.1 per cent to 37 deals from 28 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc finished the session as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units traded for N4.9 billion.
The most active stock by volume on a year-to-date basis was still InfraCredit Plc with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Adedapo Adesanya
It was not a good day for the Nigerian Naira at the two major foreign exchange (FX) market on Friday as it suffered a heavy loss against the United States Dollar at the close of transactions.
In the black market segment, the Naira weakened against its American counterpart yesterday by N10 to quote at N1,485/$1, in contrast to the N1,475/$1 it was traded a day earlier, and at the GTBank forex counter, it depreciated by N2 to settle at N1,467/$1 versus Thursday’s closing price of N1,465/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX) window, which is also the official market, the nation’s legal tender crashed against the greenback by N6.65 or 0.46 per cent to close at N1,464.49/$1 compared with the preceding session’s rate of N1,457.84/$1.
In the same vein, the local currency tumbled against the Euro in the spot market by N2.25 to sell for N1,714.63/€1 compared with the previous day’s N1,712.38/€1, but appreciated against the Pound Sterling by 73 Kobo to finish at N1,957.30/£1 compared with the N1,958.03/£1 it was traded in the preceding session.
The market continues to face seasonal pressure even as the Central Bank of Nigeria (CBN) is still conducting FX intervention sales, which have significantly reduced but not remove pressure from the Naira. Also, there seems to be reduced supply from exporters, foreign portfolio investors and non-bank corporate inflows.
President Bola Tinubu on Friday presented the government’s N58.47 trillion budget plan aimed at consolidating economic reforms and boosting growth.
The budget is based on a projected crude oil price of $64.85 a barrel and includes a target oil output of 1.84 million barrels a day. It also projects an exchange rate of N1,400 to the Dollar.
President Tinubu said inflation had plunged to an annual rate of 14.45 per cent in November from 24.23 per cent in March, while foreign reserves had surged to a seven-year high of $47 billion.
Meanwhile, the cryptocurrency market was dominated by the bulls but it continues to face increased pressure after million in liquidations in previous session over accelerating declines, with Dogecoin (DOGE) recovering 4.2 per cent to trade at $0.1309.
Further, Ripple (XRP) appreciated by 3.9 per cent to $1.90, Cardano (ADA) rose by 3.5 per cent to $0.3728, Solana (SOL) jumped by 3.4 per cent to $126.23, Ethereum (ETH) climbed by 2.9 per cent to $2,982.42, Binance Coin (BNB) gained 2.0 per cent to sell for $853.06, Bitcoin (BTC) improved by 1.7 per cent to $88,281.21, and Litecoin (LTC) soared by 1.2 per cent to $76.50, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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