Economy
Senate Engages FG on Feasibility of Various Economic Reforms
By Modupe Gbadeyanka
The Senate Committee on Finance on Thursday engaged with the federal government on the viability of its various economic reforms that have worsened the hardship of Nigerians.
Since President Bola Tinubu assumed office on May 29, 2023, prices of goods and services have increased, especially premium motor spirit (PMS), commonly known as petrol, as well as energy and others.
The high cost of living was spurred by the removal of fuel subsidies and the devaluation of the Naira, causing some companies to shut down and citizens to go hungry.
Worried by the state of the economy, the committee of the upper chamber of the National Assembly invited the central government to talks.
At the meeting in Abuja yesterday, which later went into a closed door after the Senate President, Godswill Akpabio, joined, the chairman of the committee, Mr Sani Musa, explained that the mission was to “deliberate on pressing matters related to the sale of crude oil to domestic refineries in Nigeria in Naira and its implication on the approved medium-term expenditure framework and fiscal strategy paper for 2024-2026 and what we should expect for 2025-2027.”
He added that the team also wanted to “examine shortfalls in NNPCL (Nigerian National Petroleum Company Limited) revenue remittances, focusing on key areas such as foreign and domestic excess crude accounts, the signature bonus accounts, NNPCL cash call account, and any outstanding or remitted revenue linked to under-recoveries.”
“This meeting underscores our commitment to transparency, accountability, and responsible management of our national resources.
“I am confident that with the collaboration of the Ministry of Finance under the able leadership of the Coordinating Minister of the Economy, the Office of the Accountant General of the Federation, the Central Bank of Nigeria, Revenue Mobilisation and Fiscal Commission, and other critical stakeholders present here, we will identify solutions and ensure that due processes are upheld for the benefit of our economy and the Nigerian people,” the lawmaker stated.
Responding, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, informed the Senate that the economic policies of the government were at the result-delivery stage.
“The two critical reforms on market-based pricing of Premium Motor Spirit and foreign exchange are now at the stage of results delivery and, by extension, the viability of the nation’s economy through the restoration of fiscal health.
“These two pillars of the economic reforms that have taken positive shape now portend additional revenue for the government, recovery of NNPCL’s finances, and a strong basis for economic growth in terms of attracting investment and creating jobs,” he said, commending “Nigerians for staying the course to this stage of getting benefits.”
By Adedapo Adesanya
Nigeria’s external debt servicing costs surged by 38 per cent in the first nine months of 2024, according to the Central Bank of Nigeria (CBN).
The surge translated to Nigeria’s apex bank spending a whopping $3.53 billion to service the country’s debts, indicating a $970 million jump compared to $2.56 billion during the same period in 2023.
This was contained in CBN’s International Payment Data published on its website.
The increase underscored the intensifying fiscal pressures facing Nigeria’s economy amid dwindling revenues, inflationary pressures, and currency depreciation.
A month-by-month analysis highlighted the scale of the challenge and showed that in January 2024, Nigeria spent $560.52 million on external debt servicing, marking a sharp increase from $112.35 million in January 2023.
February 2024 followed with $283.22 million, slightly below the $288.54 million recorded the previous year.
March 2024 showed a decline, with $276.17 million spent, compared to $400.47 million in March 2023, a 31 per cent drop.
In April 2024, debt servicing rose to $215.20 million, a 132 per cent increase, compared to $92.85 million in April 2023.
May 2024 saw the highest monthly expenditure of $854.37 million, a staggering 287 per cent jump from $221.05 million in May 2023.
By contrast, June 2024 recorded $50.82 million, slightly lower than the $54.36 million spent in June 2023.
The mid-year trend showed mixed movements as debt servicing fell to $542.50 million in July 2024, a 15 per cent decline from $641.69 million in July 2023.
August 2024 followed a similar trajectory, with $279.95 million spent compared to $309.96 million the previous year, a 10 per cent reduction.
However, September 2024 marked an increase, with $515.81 million spent, up 17 per cent from $439.06 million in September 2023.
By Adedapo Adesanya
The Chairman of the Senate Committee on Appropriation, Mr Adeola Olamilekan, has confirmed January 31, 2025, as a provisional date for the passage of Nigeria’s 2025 budget as the committee prepares to begin budget defence today (Tuesday).
He made this disclosure on Monday during a meeting with the chairmen of relevant committees on the template for the 2025 Budget Defence Session to guide the budget process towards its eventual signing into law.
Mr Olamilekan further revealed that upon the resumption of plenary by January 14, 2025, the Senate would immediately commence a two-week break for the seamless continuation of the budget defence process.
He equally revealed a planned retreat on Thursday on the budget consideration which will involve ministries, departments and agencies, civil society organisations, and other stakeholders in the polity for further consultation and insight into the content of the budget proposal.
According to the timetable, from January 15 to 18, the committees are expected to submit reports of their documents, after which collation and tiding of documents by the Appropriation Committee.
Acknowledging the limited timeframe, Mr Olamilekan emphasised the need for lawmakers to intensify their efforts, urging his colleagues to forgo their holidays and begin immediate work on the proposed budget estimate, underscoring the importance of timely and efficient handling of the budget process within the stipulated timeframe.
In a related development, the House of Representatives is to commence the defence for the 2025 appropriation bill by Ministries Departments and Agencies on Tuesday.
The chairman House Committee on Appropriation, Mr Abubakar Bichi, revealed this on Monday after a meeting with chairmen of statutory committees at the House of Representatives.
President Bola Tinubu on December 18, 2024 presented the N49.7 trillion Budget Proposal for 2025 before a joint session of the National Assembly, with security and defence, infrastructure, health and education topping the allocations.
The President listed some of the highlights of the budget as defence and security – N4.91 trillion, infrastructure – N4.06 trillion, health – N2.4 trillion, education – N3.5 trillion, among others.
The budget will likely cross N50 trillion upon review by the National Assembly, making it the largest yet the country has ever had since self rule began in 1960.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange ended with a 0.92 per cent growth on Monday, January 6 as investors rebalance their portfolios.
Five stocks trading at Nigeria’s OTC securities exchange influenced the positive outcome yesterday, with the value of the bourse growing by N9.58 billion to N1.056 trillion from the N1.046 trillion it ended last Friday.
In the same vein, the NASD Unlisted Security Index (NSI) increased at the close of business by 27.95 points to 3,080.29 points from the 3,052.34 points recorded at the previous session.
11 Plc jumped during the day by N23.21 to N255.31 per share from N232.10 per share, Acorn Petroleum Plc expanded by 14 Kobo to sell at N1.54 per unit versus N1.40 per unit, Industrial and General Insurance (IGI) Plc went up by 2 Kobo to settle at 22 Kobo per share compared with the preceding day’s 20 Kobo per share, Afriland Properties Plc added 13 Kobo to close at N16.12 per unit versus N15.99 per unit, and FrieslandCampina Wamco Nigeria Plc chalked up 24 Kobo to quote at N40.00 per share, in contrast to last Friday’s N39.76 per share.
On Monday, the volume of securities traded by investors went down by 83.7 per cent to 1.8 million units from 11.3 million units, and the value of shares traded yesterday depreciated by 63.5 per cent to N20.7 million from the N56.8 million recorded in the preceding session, but the number of deals increased by 7.4 per cent to 29 deals from 27 deals.
FrieslandCampina Wamco Nigeria Plc was the most active stock by value (year-to-date) with 1.8 million units worth N72.4 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and IGI Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.8 million units valued at N72.4 million, and Acorn Petroleum Plc followed with 1.2 million units worth N1.9 million.
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