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 Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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