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Buhari submits 2019/2020 budget estimates of NDDC to Senate

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jects, holds meeting with S/East stakeholders

…As Ogun assembly passes public private partnership bill into law***

President Muhammadu Buhari has submitted the 2019/2020 budget estimates of the Niger Delta Development Commission (NDDC) to the Senate for consideration and approval.

President of Senate Ahmad Lawan read the letter accompanying the budget estimates at the plenary.

The letter states: “In pursuant to Section 18 Sub Section (1) of the NDDC establishment Act, I forward herewith, the 2019/2020 budget estimates of NDDC for your kind consideration and passage by the senate’’.

Enyinnaya Abaribe (PDP Abia), however, raised a point of order 43 on the proposed NDDC budget.

He said what the presentation meant was that the budget would go to the relevant committees on Appropriation and NDDC, while some persons would come to defend the budget.

Abaribe said that the Senate had confirmed members of the board of the NDDC but they had yet to assume office.

He said there was the tendency for the budget to be delayed since nobody would come to defend it.

“Having confirmed the board, the Senate should not entertain any illegal contraction coming to represent the NDDC.

“If we act fast, we will prevent disaster from coming and prevent delayed budget for NDDC that is involved in the development of the Niger Delta region,’’ he said.

Lawan, who sustained the order raised by Abaribe said that the Senate was receiving the 2020 budget of NDDC at the right time for the first time.

He said that the next thing by law was for the appointment of the board members to take immediate effect, so that they could defend the budget.

The senate also at the plenary considered the presentation and first reading of 12 bills.

The bills are Protection of Personal Information Bill, 2019 sponsored by Sen. Stella Oduah (PDP Anambra), Erosion Control and Prevention Commission Establishment Bill, 2019 by Sen. Ifeanyi Ubah (YPP Anambra).

Others are Constitution of the Federal University of Nigeria 1999 Alteration Bill, 2019 sponsored by Sen. Gabriel Suswam (PDP Benue), North West Development Commission Establishment Bill, 2019 sponsored by Sen. Barau Jibril (APC Kano) and Gender and Equal Opportunity Bill, 2019, by Sen. Biodun Olujimi (PDP Ekiti), among others.

The senate also considered for second reading four bills, including Bill for an Act to establish Federal University of Gashua to make comprehensive provision for its due management and administration.

The bill, sponsored by Sen. Abdullahi Yahaya (APC Kebbi), was later referred to the Committee on Tertiary Education Trust fund (TETFund) and Tertiary Institution for further legislative input and report back in four weeks.

Also considered was a bill for an act to establish a federal university in Wukari to make comprehensive provision for its due management and administration.

The bill sponsored by Sen. Bwacha Emmanuel (PDP Taraba) was also referred to Committee on TETFUND and Tertiary Institution and to report back in four weeks.

Also read: Buhari gives ministry marching orders to complete Ajaokuta Steel Coy

Others are bill to amend Criminal Code Act CAP C38 LFN 2004 to increase punishment for kidnapping and rape sponsored by Sen. Oluremi Tinubu (APC Lagos) and Bill to address issues relating to Land Drainage and Flood Control by Sen. Musa Sani ( APC Niger).

In the meantime, the Ogun assembly on Tuesday passed into law a bill to provide for Public Private Partnership, establish the Office of Public Private Partnership as well as promote the development of infrastructure and service delivery in Ogun.

Mr Kemi Oduwole (APC – Ijebu Ode ) moved the motion for the adoption of the committe’s report on the bill during plenary in Abeokuta while it was seconded by Olakunle Sobukanla (APC – Ikenne).

Oduwole had earlier read the report of the Committee on Commerce, Investments and Industries before other members of the House.

Mr Yusuf Sherif (APC – Ado Odo Ota 1 ) moved the motion for the third reading of the bill.

Sherif , who is the Majority Leader, was supported by the whole House through a voice vote.

The Acting Clerk, Deji Adeyemo, thereafter, read the bill for the third time.

The lawmakers had during the second reading of the bill said it would promote the development of infrastructure and service delivery in the state.

The lawmakers also stated that the enactment of the bill would allow for public and private sectors’ collaboration to improve infrastructural development.

The Speaker of the House, Mr Olakunle Oluomo, ordered that a clean copy of the bill be forwarded to Gov. Dapo Abiodun for his assent.

 

Banking & Finance

NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

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NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

…Honeywell Flour Mill, RT Briscoe lead Losers’ Chart*** 

Key performance indicators of the Nigerian Exchange Ltd. (NGX) declined marginally on Thursday as market capitalisation which open with N25.959 trillion, lost N2 billion or 0.01 percent to close at N25.957 trillion.

Also, the All-Share Index (ASI) closed lower by 3.4 points or 0.01 percent to settle at 47,656.64 points compared with 47,660.04 recorded on Wednesday.

Consequently, the year-to-date (YTD) return stood at 11.57 percent.

Sell-offs in MTN Nigeria Stock led to a downturn in the performance of the market.

However, market sentiment, as measured by market breadth, was positive, as 11 stocks gained relative to nine losers.

UPDC Real Estate Investment Trust recorded the highest price gain of 9.09 percent to close at N3 per share.

McNichols followed with a gain of 8.93 percent to close at 61k, while Japual Gold and Ventures appreciated by 7.41 percent to close at 29k per share.

Nigerian Breweries went up by 7.14 percent to close at 45k per share.

Also, Royal Exchange Assurance rose by 4.76 percent to close at 66k per share.

On the other hand, Honeywell Flour Mill led the losers’ chart by 7.89 percent to close at N2.10, RT Briscoe followed with a decline of 7.41 percent to close at 25k and Wema Bank shed 5.45 percent to close at N3.12 per share.

FCMB Group lost 4.18 percent to close at N3.21, while Cutix Plc shed 3.46 percent to close at N2.5 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 115.63 percent.

A total of 172.90 million shares valued at N2.84 billion were exchanged in 3,073 

In another development, the Naira on Thursday exchanged at 445.83 to the dollar at the Investors and Exporters window, a depreciation of 0.12 percent, compared with the 445.30 it exchanged on Wednesday.

The open indicative rate closed at N444.60 to the dollar on Thursday.

An exchange rate of N447 to the dollar was the highest rate recorded within the day’s trading before it settled at N445.83.

The Naira sold for as low as 422 to the dollar within the day’s trading.

A total of N99.50 million was traded at the official Investors and Exporters window on Thursday

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Banking & Finance

NGX maintains bearish trend, sheds N62bn; Neimeth International Pharma leads Loser’s chart 

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NGX maintains bearish trend, sheds N62bn; Neimeth International Phama leads Loser's chart 

Transactions on the Nigerian Exchange Ltd. (NGX) on Tuesday remained bearish with crucial indicators declining by 0.24 percent, and the market shedding N62 billion, to close at N25.775 trillion, compared with N25.837 trillion on Monday.

Similarly, the All-Share Index, which opened at 47, 436.45 lost 113.48 points or 0.24 percent to close at 47,322.97.

The market breadth closed flat with 12 stocks on the gainers’ and losers’ tables.

A breakdown of the price movement table showed that Chams Plc topped the gainers’ table with an increase of 9.09 percent to close at 24k per share.

WAPIC trailed with a gain of 6.06 percent to close at 35k, while NPF Microfinance Bank rose by 5.33 percent to close at N1.58 per share.

Jaiz Bank was up by 3.66 percent to close at 85k, while First City Monument Bank gained by 3.08 percent to close at N3.55 per share.

Conversely, Neimeth International Pharma led the losers’ table, growing by 7.97 percent to close at N1.27 per share.

Nigerian Breweries followed with a loss of 7.66 percent to close at N45.20, while Caverton Offshore Support Group went down by 5.68 percent to close at 83k per share.

Ecobank Transnational Incorporated (ETI) decreased by 5.16 percent to close attention at N10.10, while Union bank of Nigeria declined by 4.58 percent to close at N6.25 per share.

In all, investors bought and sold 129.95 million shares valued at N1.63 billion achieved in 3,022  deals.

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Banking & Finance

Nigeria’s Rising Inflation Consistent with Global Trend – Emefiele

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Non-oil Exporters Repatriate $4.99bn in 2022; Emeifele Says only $1.97bn Qualifies for Rebate 

Mr. Godwin Emefiele, Governor, Central Bank of Nigeria (CBN) on Friday opined that the steady increase in headline inflation from 15.60 percent in January to 20.77 percent in September was consistent with global trends.

Emefiele said this at the 57th Annual Bankers Dinner, organised by the Chartered Institute of Bankers Nigeria (CIBN), on Friday in Lagos.

The dinner had the theme, “Radical Responses to Abnormal Episodes: Time for Innovative Decision-making” which was appropriate and well-timed.

He also said headline inflation soared to 20.77 percent in September, indicating eight consecutive months of an uptick, and that the upward momentum was after a successive period of decline in 2021, due to balanced monetary policy actions.

He said upside pressure on consumer inflation re-emerged during the year, as global conditions complicated existing local imbalances to undermine price stability.

“Food remains the major component of domestic consumer price basket. The annualised uptick in headline inflation mirrors the 6.21 percentage points upsurge in food inflation to 23.34 percent in September.

“During this period, core inflation also resumed an upward movement from 13.87 percent in January to 17.60 percent.

“In addition to harsh global spillovers, exchange rate adjustments and imported inflation; inflation was also driven by local factors such as farmer-herder clashes in parts of the food belt region,” he said.

Emefiele said during the early part of 2020, the world economy experienced the most significant downturn last witnessed since the Great Depression following the outbreak of the COVID-19 pandemic.

He said the effect contracted global GDP by about 3.1 percent in 2020, and commodity prices went into a state of turmoil as the price of crude oil plunged by over 70 percent.

He said as the world struggled to recover to pre-pandemic conditions, the global economy was yet again hit by another adverse occurrence with the eruption of the Russian-Ukraine war.

He said the war, along with the sanctions placed on Russia by the US and its allies, led to a spike in crude oil prices.

He said in an attempt to contain rising inflation, advanced markets such as the US, began to increase their policy rates, which led to a tightening of global financial market conditions along with a significant outflow of funds from emerging markets.

“The subsequent strengthening of the US dollar further aggravated inflationary pressures, along with a weakening of currencies, and depletion of external reserves in many emerging market countries.

“Today close to 80 percent of countries have reported heightened inflationary pressures due to a confluence of some of the factors mentioned above,” said Emefiele.

He explained that central banks in emerging markets and developing economies, in a bid to contain rising inflation were also compelled to raise rates, which was expected to lead to a tapering of global growth over the next year.

“In fact, the short-term global growth projections by the IMF have been downgraded three times in 2022 and are likely to be below the 3.2 percent and 2.7 percent estimates for 2022 and 2023, respectively.

“Average growth among advanced economies is projected to plunge from 5.2 percent in 2021 to 2.4 percent in 2022 and 1.1 percent in 2023.“Estimated output growth in emerging markets, is expected to slow from 6.6 percent in 2021 to 3.7 percent apiece in 2022 and 2023,” he said.

He said in view of the food, energy, and cost-of-living crises in many countries, there were growing restrictions on food exports from many countries.

“As at the last count, about 23 countries, mainly in advanced economies, according to the World Bank have banned the export of 33 food items. “Seven other countries have additionally implemented various measures to limit food exports,” said Emefiele.

On currency redesign, Emefiele said, “Analysis of the key challenges primarily indicated a significant hoarding of banknotes, as over 85 percent of the currency in circulation were held outside the banking system.

“This is even as currency in circulation more than doubled from N1.46 trillion in December 2015 to N3.23 trillion in September 2022; a worrisome trend that must be curbed.”

He, therefore, said the policy would quicken the attainment of a cashless economy as it was complemented by increased minting of the eNaira.

According to him, the redesigned notes will also curtail currency outside the banking system, and as the monetary policy becomes more effective, it will help rein in inflation.

Earlier, Dr. Ken Opara, CIBN president, commended Emefiele, saying he had during the year, continued to be purposeful in curtaining economic shocks from the aftermath of the fourth wave of the COVID-19 pandemic.

He commended him for keeping inflation and other related economic indices, especially the naira, from distortions exacerbated by declining production levels fueled by high cost of production, insecurity, dwindling government revenues, foreign exchange volatility and uncertainty in the global oil market.

Opara said, “through the careful management of the Monetary Policy Rate (MPR), the CBN continued to drive the recovery path of the Nigerian economy through the expansion of credit to the real sector, guided management of foreign reserves and promoting sound financial environment and monetary policy.”

The Annual Bankers’ Dinner is a platform where stakeholders of the banking community gather to reflect on the developments in the banking industry and economy over the past year while gaining economic insights for the year to come.

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