Connect with us

Economy

INEC budgets N1.9bn to defend Buhari, others’ mandate in court

Published

on

Nigerians submit 9,777 requests to INEC for additional polling units in the country – Prof. Yakubu

…As Experts tell Buhari: Remove petrol subsidy, cut interest rates***

The Independent National Electoral Commission is expected to spend over N1.9bn on legal fees and related matters as aggrieved candidates challenge the outcomes of various elections in court.

Atiku, a former governor of Akwa Ibom State, Godswill Akpabio, and others have already challenged the result of the elections in court.

The information is contained in INEC’s 2019 Election Project Plan which was obtained by The PUNCH.

The document reads in part, “N1, 796, 547, 500.00. Professional fees and expenses for external solicitors to be engaged by the commission to represent it at the tribunals and appeals; honorarium for legal officers that represent the commission at election petitions and appeals.

“Analysis of fees: Governorship petition at N4.5m X 20; senatorial petition at N3m X 45; House of Reps atN2.7m X105; state House of Assembly N1.350m X 244. Honorarium to in-house lawyers is seven per cent of fees payable to external solicitors.”

Of the sum, N6m was spent on pre-election cases which are disputes that arose from the conduct of party primaries.

The commission will also spend a separate N26.5m on monitoring the hearing of election petitions and appeals across the 36 states and the FCT.

The sum will cover duty tour allowance and transport costs for the monitors at the hearing of election petitions and appeals as well as the compilation and printing of reports of petitions and appeals.

The electoral umpire also budgeted a separate N99.5m for the compilation and production of updated electoral legal framework including the code of conduct for external lawyers and code of conduct for staff.

A separate N25m will be spent on the prosecution of electoral offenders.

Yakubu had revealed in January that the commission battled 1, 134 legal cases arising from election disputes in 2015, 2016 and 2017.

He added, “In the course of discharging our responsibilities, no public institution in Nigeria is subjected to more litigation than INEC. Over the last two years (2016 and 2017), the commission has been involved in 454 court cases in addition to 680 cases determined by the Election Petitions Tribunals arising from the outcome of the 2015 general elections, making a total of 1,134 cases so far.”

In another forum, Yakubu said no government agency in the country had been taken to court more than INEC because every aggrieved candidate would join the commission in almost every suit.

In the meantime, foreign and local economic experts have said President Muhammadu Buhari should put at the top of his second-term agenda the removal of petrol subsidy as well as the reduction of interest rates in a bid to stimulate investments and economic growth.

Experts at Agusto & Co Limited, a credit rating agency, said in a report on Tuesday that the country “is currently in a dire fiscal strait and the numbers are quite grim.”

“For instance, despite the positive spin about Nigeria’s benign debt to Gross Domestic Product currently around 20 per cent, interest payments as a percentage of revenue are over 60 per cent,” they said.

The Lagos-based rating agency said Buhari’s government would have to work to raise revenue while also restructuring government spending.

It said, “All options on the table for Mr Buhari in his last term are hard choices with no easy way out. For instance, Nigeria’s current fuel subsidy regime indicates the country may have re-adopted opaque practices of the past that not only create a huge fiscal hole but a morass as well.

“With subsidy payments probably in the range of N1.2tn-N1.3tn annually, the country is obviously hemorrhaging especially amidst the steep opportunity costs. Mr Buhari will not only have to stop this fiscal hemorrhage but also muster the political will to deregulate the downstream petroleum industry once and for all.”

According to Agusto & Co, some of the big issues that will make or mar Buhari’s economic records will be the management of subsidies and other cost-unreflective tariffs being stifled by price controls.

“These reforms will require the removal of subsidies on the pump price of petrol, allow market forces to determine the domestic price of natural gas, allow electricity tariffs that enable operators to earn margins on their costs and also ensure exchange rates reflect fundamentals. These reforms could help stimulate investments across the board and unlock economic growth,” the experts added.

They said the Buhari administration should seek to improve efficiencies in the economy by concessioning key infrastructure and eliminating monopolies of state-owned enterprises in key sectors such as aviation (airport ownership and management), railway and electricity transmission by opening up the sectors to private sector investments.

The Global Chief Economist, Renaissance Capital, Charlie Robertson, in an emailed note on Tuesday, said Nigeria would require a doubling of oil price or industrialisation to achieve real per capita GDP growth of four to six per cent (i.e. headline GDP growth of seven to nine per cent).

He said, “Without it, per capita GDP growth may be around zero per cent, which implies headline GDP rising at roughly three per cent annually.

“To achieve industrialisation, Nigeria needs to raise the adult literacy rate from 60 per cent to 70-80 per cent – which we think can happen from 2024 onwards; treble electricity consumption – which we assume requires at least a doubling of the electricity tariff, and double the investment rate from 13 per cent of GDP to 26 per cent of GDP – or triple it, to match what Ethiopia is doing.”

Robertson added, “To double the investment rate, we suggest that reforms may be needed, like removing the implicit fuel subsidy that costs about 0.5 per cent of GDP. It supports consumption and not investment.”

He said the government should “boost domestic savings and bring down interest rates which will probably require a smaller budget deficit and higher taxes, and encourage foreign direct investment, which in 2018 fell to $2.2bn, according to the United Nations Conference on Trade and Development.

“Ghana got $3bn. To match Ghana (per capita), Nigeria should be getting $24bn a year. A change of approach to MTN, the oil majors and others may be required.”

According to Robertson, the naira should be allowed to trade closer to fair value, estimated today at N440/$, N470 by year-end and N670 by end-2023.

“Allowing faster currency depreciation does partly contradict point 3 on cutting interest rates,” he added.

Punch

Economy

NGX Market Capitalisation Gains N836bn

Published

on

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Tantalizers, NASCON lead the losers’ chart 

The Nigerian Exchange Ltd.(NGX) market capitalisation, which opened at N57.697 trillion on Tuesday, gained N836 billion or 1.45 percent closing at N58.533 trillion.

Also, the All-Share Index rose by 1.45 percent or 1,480 points to close at 103,524.44, as against 102,044.84 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 38.45 percent.

Interest in Telco heavyweight and Tier-one banks such as MTN Nigeria, UBA, Access Corporation, Guaranty Trust Holding Company(GTCO), and sustained interest in Transcorp Power(TransPower) kept the market in the green.

Market breadth closed positive with 35 gainers and 14 losers.

On the gainer’s chart, UBA led in percentage terms of 10 to close at N25.30, followed by MTN by 9.98 percent to close at N243.50 per share.

Julius Berger also gained 9.71 percent to close at N61, While Access Corporation rose by 9.51 percent to close at N22.45 per share.

Veritas Kapital Assurance went up by 9.38 percent to close at 70k per share.

Conversely, Tantalizers led the loser’s chart by 7.89 percent to close at 35k, and National Salt Company of Nigeria(NASCON) trailed by 6.77 percent to close at N53.70.

Morison Industries Plc shed 6.62 percent to close at N1.41, C&I Leasing lost 6.45 percent to close at N3.48, while Cutix Plc dropped 6.30 percent to close at N2.53 per share.

However, analysis of the market activities showed trade turnover settled lower, relative to the previous session.

The value of transactions was also down by 16.76 percent.

A total of 565.79 million shares valued at N14.23 billion were exchanged in 11,519 deals,  compared to 436.90 million shares valued at N17.09 billion exchanged in 11,344 deals traded on Monday.

On the activity chart, Transcorp led in volume with 170.72 million shares traded at a value of N3.13 billion, Access Corporation followed by 48.57 million shares valued at N1.06 billion.

GTCO sold 39.04 million shares worth N165.80 million, Jaiz Bank traded 36.78 million shares valued at N72.51 million and UBA transacted 31.96 million shares valued at N796.24 million

Continue Reading

Economy

SIFAX Group Appoints Basil Agboarumi As Executive Director

Published

on

SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director of corporate and Intergovernmental Affairs.

Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

Basil Agboarumi, Executive Director, Corporate and Intergovernmental Affairs

After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange while many airlines, both local and foreign, signed business deals with the company due to its excellent and cutting-edge services which include passenger handling, ramp handling, and cargo handling.

Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.

He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

Continue Reading

Economy

NGX All-Share Index Crosses 100,000 Mark

Published

on

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Guinness Nigeria and FTN Cocoa Processors lead the losers’ table

The All-Share Index, one of the performance indices of the Nigerian Exchange Ltd.(NGX), on Thursday, crossed a 100,000 mark for the second time in the year.

Having crossed the mark on Jan. 24, and later dropped, the All-Share Index specifically added 0.75 percent or 744 points to settle at 100,335.3, compared to 99,591.64 posted on Wednesday.

Consequently, investors gained N420 billion or 0.75 percent, as the market capitalisation which opened at N56.310 trillion, closed at N56.730 trillion.

Also, the Year-To-Date (YTD)return rose to 33.19 percent.

Improved buy interest in the shares of Dangote Sugar, MTN Nigeria, Transcorp Power, Oando Plc, and Cornerstone, alongside other top gainers drove the equity market to a positive terrain.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 9.11 percent.

However, market breadth closed negative with 33 losers and 25 gainers.

On the gainers table, Dangote Sugar and MTN led in percentage terms of 10 percent each to close at N50.60 and N201.30 per share, respectively.

Transcorp Power followed closely by 9.99 percent to close at N351.30, while Juli Plc added 9.96 percent to close at N4.97 per share.

National Salt Company of Nigeria (NSCN) rose by 9.92 percent to close at N47.65 per share.

On the other hand, Guinness Nigeria and FTN Cocoa Processors led the losers’ table by 10 percent each to close at N45.90 and N1.53 per share, respectively.

Transcorp also lost 9.95 percent to close at N17.10, Ikeja Hotel shed 9.93 percent to close at N6.08, while Redstarex declined by 9.87 percent to close at N3.38 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

A total of 554.72 million shares valued at N17.73 billion were exchanged in 9,708 deals, compared to 416.48 million shares valued at N19.51 billion exchanged in 9,338 deals.

On the activity table, Transnational Corporation (Transcorp) led both in volume and value with 301.36 million shares traded in value of  N5.65 billion.

Sterling Nigeria sold 33.32 million shares worth N150.78 million, while FBN Holdings traded 23.21 million shares valued at N773.91 million.

Also, United Bank of Africa (UBA) transacted 18.38 million shares worth N400.29 million and Zenith Bank sold 17.08 million shares valued at N583.93 million.

Reacting, a stockbroker with Premium Capital, Mr Victor Ibrahim, said that the improved performance of the equity market was due to renewed investors’ expectations from the current government’s policies.

Ibrahim stated in Lagos that investors were keying into the future benefits of the economy by boosting their investment in the equity market.

He said, “The stock market is a leading indicator of the Nigerian economy and as such, with government policies such as the free-flow economy, investors confidence in our market has been boosted.

“The artificial scarcity of dollars in order to underprice or devalue the Naira is also another indicator.

“This is because the price of stocks in the Nigerian equity market is cheaper for foreign investors and those local investors who have dollars in reserve.

“While the Nigerian economy may presently appear tough, investors are keying into the future opportunities in the current government’s policies with the belief in the capacity of President Bola Tinubu.”

Continue Reading

Editor’s Pick

Politics