Economy
Rewane Expresses Worry over Nigeria’s Fiscal Deficit of N8.92trn
By Dipo Olowookere
Renowned economist and Managing Director of Financial Derivatives Company Limited, Mr Bismarck Rewane, has expressed worry over the fiscal deficit of Nigeria.
Speaking on Monday at a webinar hosted by Stanbic IBTC Holdings Plc, a member of Standard Bank Group, the member of the Economic Advisory Council (EAC) of President Muhammadu Buhari said Nigeria’s expenditure currently stands at N19.63 trillion while its revenue stands at N10.71 trillion. This means Nigeria’s fiscal deficit stands at N8.92 trillion.
He further disclosed at the event themed 2022 Virtual Economic Outlook- Investing and planning in an election cycle that the fiscal deficit translates to an increasing level of poverty, inflation, unemployment and the number of out-of-school children.
Mr Rewane noted that the number of fully employed Nigerians had dipped by 54.41 per cent in the last five years and the working population grew by 18.45 per cent, while 50 per cent of Nigerians remain idle.
Highlighting Nigeria’s fiscal position in five years, he noted that while oil prices increased by 62.36 per cent; currency and balance of trade weakened by 239.76 per cent and 35.95 per cent respectively, with gross external reserves gaining 39.29 per cent.
According to him, sustained supply concerns have helped to shore up global oil prices above $80 per barrel while the Central Bank of Nigeria (CBN) has continued to step up its intervention programme in the forex market as the nation’s gross external reserves continue to dwindle. Also, he said, the naira has continued to witness increased pressure due to excess liquidity.
“The nation’s economy is expected to continue its rebound as witnessed in the last quarter of 2021 while oil prices are likely to remain high as major economies re-open fully and oil demand picks up.
“Furthermore, the advent of COVID-19 vaccines has continued to discount the impact of Omicron on oil demand while the effect of the Iran nuclear deal is expected to push up the nation’s oil supply to the global market. This is expected to provide more support to Nigeria’s earnings,” said Mr Bismarck.
“To boost the manufacturing sector, the Central Bank of Nigeria (CBN) is likely to intensify its forex intervention as it seeks to increase supply to manufacturers,
“Also, the CBN is expected to step up efforts towards exchange rate convergence, increase its intervention in the forex market while the postponement of the fuel subsidy removal will dampen the anticipated spike in inflation for the year as trade policies are expected to become less protectionist,” he added.
Also speaking at the event, the Executive Director of Corporate and Investment Banking at Stanbic IBTC Bank, Eric Fajemisin, noted that the lender, through its business advisory services, has continued to help its customers make good investment decisions and provide them with business financing.
On the part of the Executive Director of Business and Commercial Clients at Stanbic IBTC Bank, Remy Osuagwu, the organisation has continued to partner with the CBN in its various intervention programmes such as the Real Sector Fund, Anchor Borrowers Fund, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), amongst others.
Commenting, the Chief Executive of Stanbic IBTC Pension Managers, Olumide Oyetan, said the company, through its investment management vehicle, has continued to provide avenues for investors to profitably invest their funds short and long term while ensuring the safety of invested funds.
The Executive Director of Client Solutions at Stanbic IBTC, Bunmi Dayo Olagunju, in her concluding remarks, stated that the economic ecosystem can improve during the election cycle if digital technologies can be leveraged effectively.
Earlier in his opening remarks, the Chief Executive of Stanbic IBTC Holdings Plc, Mr Demola Sogunle, thanked the customers for the confidence and trust reposed in the organisation through their patronage.
He assured Nigerians of valuable and exciting opportunities despite the likely headwinds as the nation prepares for its general elections.
The event was put together to reflect on the economic trends that shaped 2021 and give projections of what to expect in 2022. It also afforded participants the opportunity to learn directly from economic experts on the importance of planning and investment.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange increased by 0.59 per cent in Trading Week 16 of 2026, with the market capitalisation adding N13.58 billion to settle at N2.329 trillion compared with the previous week’s N2.315 trillion, and the NASD Unlisted Securities Index (NSI) up by 22.70 points to 3,893.15 points from 3,870.45 points in week 15.
Over the course of five trading sessions of the week, the total volume of stocks transacted by market participants went down by 50.2 per cent to 3.87 million units from 7.77 million units, but the value increased by 20.9 per cent to N150.9 million from N124.9 million. These trades were carried out in 162 deals across 20 stocks.
The most traded stock by value for the week was Okitipupa Plc with N46.7 million, followed by Central Securities Clearing System (CSCS) Plc with N36.3 million. Friesland Campina Wamco Nigeria Plc recorded N31.9 million, MRS Oil Plc posted N14.6 million, and 11 Plc achieved N12.6 million.
The most active stock by volume was Geo-Fluids Plc with 1.5 million units, and trailed by UBN Property Plc with 0.828 million units. CSCS Plc traded 0.609 million units, Friesland Campina Wamco Nigeria Plc quoted 0.325 million units, and Okitipupa Plc sold 0.26 million units.
Last week, 11 securities recorded movements, with eight on the green side and three on the red side.
MRS Oil Plc gained N33.75 to close at N197.75 per unit versus N164.00 per unit, Nipco Plc which rose by N31 to N344.00 per share versus N313.00 per share, Okitipupa Plc appreciated by N20 to N280.00 per unit from N260.00 per unit, Friesland Campina Wamco Nigeria Plc improved by N5.21 addition to N97.21 per share from N92.00 per share, NASD Plc chalked up N1.14 to sell at N38.50 per unit versus N37.36 per unit, Food Concepts Plc appreciated by 26 Kobo to N2.94 per share from N2.68 per share, Industrial and General Insurance (IGI) Plc increased by 6 Kobo to 63 Kobo per unit from 57 Kobo per unit, and Lighthouse Financial Plc expanded by 6 Kobo to 72 Kobo per share from 66 Kobo per share.
Conversely, 11 Plc lost N10.22 to quote at N212.08 per unit versus N222.30 per unit, CSCS Plc declined by N5.50 to N58.00 per share from N63.50 per share, and First Trust Mortgage Bank Plc shrank by 2 Kobo to N2.30 per unit from N2.32 per unit.
By Aduragbemi Omiyale
The federal government has said there is no iota of truth in reports making the rounds that a significant portion of federation earnings is being “diverted”.
The claims came from a recent World Bank report, which the government said the media misinterpreted as “hidden spending.”
In a statement signed on Sunday by the Minister of State for Finance, Mr Taiwo Oyedele, the federal government emphasised that the characterisation of the Federation Account Allocation Committee (FAAC) deductions as “waste” or missing funds was “incorrect,” noting that the World Bank report presented the deductions as statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), and transfers and interventions benefiting subnational governments.
“It is important to emphasise that refunds and transfers to states and other tiers of government are not leakages. They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations,” the statement said.
It was further stressed that, “The World Bank explicitly notes that reforms implemented in early 2026, including the recently signed Executive Order to safeguard remittance of petroleum revenues, are already addressing concerns around deductions, and are expected to improve transparency while increasing revenues available to all tiers of government by about 0.4 per cent of GDP annually.”
“Misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture,” it submitted.
The Nigerian authorities averred that the broader message of the World Bank report is positive and forward-looking, as economic growth is becoming more broad-based across sectors, inflation is declining due to deliberate policy actions, Nigeria’s external position has strengthened, and debt indicators have improved.
The government declared that the World Bank did not say in the report that “Nigeria’s fiscal system is collapsing or that reforms have failed. Rather, it states that reforms are working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.”
The statement appealed to “stakeholders, media organisations, and the public to engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.”
By Dipo Olowookere
On the floor of the Nigerian Exchange (NGX) Limited last week, 3.588 billion shares valued at N195.313 billion exchanged hands in 254,553 deals, higher than the 3.361 billion shares worth N151.948 billion traded in 229,442 deals a week earlier.
Over a quarter of these transactions were centred around the trio of Sterling Holdco, Access Holdings, and Zenith Bank, which specifically accounted for 1.038 billion stocks worth N46.081 billion in 33,067 deals, contributing 28.92 per cent and 23.59 per cent to the total equity turnover volume and value, respectively.
They helped the financial equities to lead the activity chart with 2.498 billion units sold for N94.005 billion in 111,052 deals, contributing 69.62 per cent and 48.13 per cent to the total trading volume and value, respectively.
Services stocks traded 329.034 million units valued at N3.452 billion in 14,050 deals, and energy shares transacted 152.472million units worth N42.511 billion in 19,022 deals.
In the week, 61 equities appreciated versus 25 equities in the previous week, as 36 stocks depreciated compared with 54 stocks of the preceding week, while 49 shares remained unchanged, in contrast to 67 shares of the previous trading week.
Trans-Nationwide Express gained 60.48 per cent to sell for N6.05, Ecobank appreciated by 46.30 per cent to N67.30, Stanbic IBTC rose by 36.63 per cent to N188.55, Royal Exchange improved by 29.37 per cent to N1,85, and Aradel grew by 28.93 per cent to N1,649.00.
On the flip side, Coronation Insurance lost 14.38 per cent to close at N2.50, Ikeja Hotel declined by 14.36 per cent to N33.40, International Energy Insurance shrank by 13.80 per cent to N3.06, Academy Press slumped by 12.57 per cent to N7.65, and Honeywell Flour crumbled by 11.01 per cent to N19.00.
Business Post reports that the All-Share Index (ASI) went up by 6.57 per cent to 217,167.57 points, and the market capitalisation advanced by 6.60 per cent to N139.827 trillion, as the demand for Nigerian stocks soared.
Also, all other indices finished higher apart from the insurance and growth indices, which fell by 0.04 per cent and 0.99 per cent, respectively.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn