Economy

Why Borrowing Under Buhari Has Increased—Finance Minister

Published

5 years ago

12/04/2021

By Modupe Gbadeyanka

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has explained why the administration of President Muhammadu Buhari has embarked on huge borrowing since he came into power on May 29, 2019.

The Minister, in a statement issued by her Special Adviser on Media and Communications, Mr Yunusa Tanko Abdullahi, on Monday disclosed that the borrowing has increased because of Mr Buhari’s desire to invest in public infrastructure, which will boost the economy and attract foreign investors like MoneyBrighter and others.

Mrs Ahmed said the President, recognising the importance of infrastructure from his first day in office, prioritised infrastructure provision and upgrade by ensuring that resources are adequately mobilised for infrastructure provision. If you are unaware of how to get an llc, then consider checking out startmyllc website.

She noted that engaging in such huge public investment in infrastructure requires a management system and structure that will ensure that government gets value for money spent, hence, the need to set up public investment management units.

“In a developing economy such as ours, the provision of infrastructure is usually a cardinal objective. This is mainly due to the multiplier effect of the provision of roads, rails, schools, hospitals, etc. on the growth and development of the economy,” she said.

“This is even very compelling given that the government has had to increase its borrowing to fund these public investments in infrastructure owing to revenue challenges. Thus, because public investment refers to government’s spending on infrastructure, its management literally means the process of handling expenditures to ensure that government gets value for its investments,” Mrs added when she spoke at a two-day retreat held last week by the Budget Office of the Federation (BOF)/National Assembly Appropriation Committee on the Budget Process with focus on Strengthening Public Investment Management (PIM).

The Minister submitted that strengthening public investment will come easy with commitment, loyalty and collaborations between the parliament and the Ministry.

“For us to have a strong public investment management system that will help us reduce our infrastructure deficit, deepen our PFM reforms and assist in achieving the goals of our medium to long-term development plans, the executive and the legislature must perform their separate roles effectively while also collaborating to ensure overall success.

“The role of both the executive and legislative cannot be overemphasised. As we all know; the budget is the main fiscal policy instrument through which public investment in infrastructure is carried out by the government.

“Besides, ensuring adequate provisions of resources for public investment in infrastructure in key sectors of the economy is one of the key points of our medium-term expenditure framework which forms the basis for preparing the annual budget in line with provisions of the Fiscal Responsibility Act 2007,” she said.

“Since the coming on board of this administration, the BOF has taken several steps aimed at ensuring allocative efficiency of resources as well as transparency in budget implementation and reporting.

“For example, the government’s commitment to achieving transparency in public expenditure is reflected in the progress that we have made since the country signed up to the open government partnership (OGP) in May 2016 as the 70th member country,” she added.

The Minister also noted that the oversight role of the legislative arm of government is particularly important for strengthening the public investment management system.

“Irrespective of the budgetary allocations, the lack of quality spending will erode the objectives of such high allocations.

“As such, the legislature, using its instrumentality of the oversight function, can help improve the quality of government’s spending on infrastructure. This usually complements the monitoring efforts of the Ministry of Finance, Budget and National Planning,” she noted further.

Mrs Ahmed disclosed that PIM Units have now been established across the Sub-Saharan Africa (SSA) region, noting that, “These units are usually located in a country’s Ministry of Finance or the Ministry of Planning or Economic Development.

“Their purpose is to strengthen the appraisal, selection and implementation of infrastructure projects that many countries are (or will be) using to boost the economic recovery from the COVID-19 pandemic.”

Economy

Nigerian Stocks Close 1.13% Higher to Remain in Bulls’ Territory

Published

7 hours ago

20/12/2025

Dipo Olowookere

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.

Economy

FrieslandCampina, Two Others Erase N26bn from NASD OTC Bourse

Published

9 hours ago

20/12/2025

Adedapo Adesanya

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.

Economy

Naira Crashes to N1,464/$1 at Official Market, N1,485/$1 at Black Market

Published

11 hours ago

20/12/2025

Adedapo Adesanya

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.