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FG, States Budget N5.6tr For Salaries, Overheads

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  • FG, States Budget N5.6tr For Salaries, Overheads

The federal and 36 state governments will spend half of their N13.5 trillion total budgets for the year on salaries and overheads.

Analysis of the 2017 budget documents shows that the central and 33 state governments would spend N5.9 trillion (41 percent) of their total budgets on salaries.The central government’s budget for the year is N7.29 trillion; of which the recurrent expenditure will gulp N2.98 trillion. Other components of the federal government budget are statutory transfers (N414 billion) and debt servicing (N1.66 trillion).

The central government’s budget for the year is N7.29 trillion; of which the recurrent expenditure will gulp N2.98 trillion. Other components of the federal government budget are statutory transfers (N414 billion) and debt servicing (N1.66 trillion).The 33 states have a combined budget of N6.22 trillion and they are spending N2.60 trillion (42 percent) on workers emoluments. There are no budget figures from Adamawa, Ondo and Kebbi states.

The 33 states have a combined budget of N6.22 trillion and they are spending N2.60 trillion (42 percent) on workers emoluments. There are no budget figures from Adamawa, Ondo and Kebbi states.The swollen recurrent expenditures keep coming despite the economic recession triggered by the dwindling oil revenues and low votes for development projects.

The swollen recurrent expenditures keep coming despite the economic recession triggered by the dwindling oil revenues and low votes for development projects.At Nigeria’s official exchange rate of 304 to a US dollar, the federal and state governments will spend $42.9 billion this year. The 33 states are spending $19.7 billion while the federal government is spending $23 billion.

At Nigeria’s official exchange rate of 304 to a US dollar, the federal and state governments will spend $42.9 billion this year. The 33 states are spending $19.7 billion while the federal government is spending $23 billion.Capital spending by the central and the state governments this year is N5.77 trillion (43 percent) – N2.24 trillion for the federal and N3.53 trillion for the states.

Capital spending by the central and the state governments this year is N5.77 trillion (43 percent) – N2.24 trillion for the federal and N3.53 trillion for the states.Further analysis of the budget estimates of the two tiers of government

Further analysis of the budget estimates of the two tiers of government show an increase of N1.3 trillion from last year’s N12.2 trillion.The total recurrent expenditures of the federal and state governments also rose by over N200 billion, from N5.3 trillion last year to N5.5 trillion this year.

The total recurrent expenditures of the federal and state governments also rose by over N200 billion, from N5.3 trillion last year to N5.5 trillion this year.Also, capital projects by the two tiers soared by over half a trillion naira. It rose from N5.04 trillion in 2016 to N5.77 trillion this year.

Also, capital projects by the two tiers soared by over half a trillion naira. It rose from N5.04 trillion in 2016 to N5.77 trillion this year.

The 17 northern states have a total budget of N2.38 trillion, witnessing a reduction of over N100 billion from last year’s N2.5 trillion. Of this, N1.37 trillion was for capital and N928 billion for recurrent, compared to last year’s N1.4 trillion and N1.1 trillion respectively.The total budget of the 16 southern states is N3.83 trillion against previous year’s N3.5 trillion. Of this, N2.15 trillion is capital and N1.67 trillion recurrent against N1.9 trillion and N1.5 trillion in 2016.

The total budget of the 16 southern states is N3.83 trillion against previous year’s N3.5 trillion. Of this, N2.15 trillion is capital and N1.67 trillion recurrent against N1.9 trillion and N1.5 trillion in 2016.

Small spenders
The seven states with the lowest approved budgets are Nasarawa (N67 billion), Yobe (N69 billion), Gombe (N86 billion), Ekiti (N94 billion), Abia (N103 billion), Enugu (N105 billion), Niger (N108 billion), and Taraba (N110 billion).

Big spenders
Lagos, with N813 billion, is leading the league of states with huge budgetary allocations. Other big spenders are Rivers (N470 billion), Akwa Ibom (N365 billion), Cross River (N301billion), Delta (N271 billion), Bayelsa and Ogun (N221 billion each), Kaduna (N215 billion), Kano (N210 billion) and Oyo (N207 billion).

Geopolitical analysis
On geopolitical basis, the seven states of the northwest zone (minus Kebbi) have a total budget of N1.01 trillion slightly lower than previous year’s N1.12 trillion. The budget has capital and recurrent components of N635.2 billion and N376.5 billion when compared with last year’s N698 billion and N479 billion irrespectively.The total budget for the northeast zone is N593.1 billion, about N80 billion lower than 2016’s N676 billion, with capital expenditure consuming N298 billion against last year’s N347 billion; leaving N209.8 billion for recurrent, which is lower than N326 billion for the previous year.

The total budget for the northeast zone is N593.1 billion, about N80 billion lower than 2016’s N676 billion, with capital expenditure consuming N298 billion against last year’s N347 billion; leaving N209.8 billion for recurrent, which is lower than N326 billion for the previous year.The north central zone’s approved budget for the year is N781.5 billion, a rise of about N100 billion from last year’s N684 billion. N439 billion is for capital and N342.4 billion for recurrent spending, unlike N385 billion and N343 billion in the previous year.

The north central zone’s approved budget for the year is N781.5 billion, a rise of about N100 billion from last year’s N684 billion. N439 billion is for capital and N342.4 billion for recurrent spending, unlike N385 billion and N343 billion in the previous year.The southwest zone’s budget for the year is N1.47 trillion, slightly higher than last year’s N1.36 trillion, with capital spending consuming N805.7 billion, leaving N668 for

The southwest zone’s budget for the year is N1.47 trillion, slightly higher than last year’s N1.36 trillion, with capital spending consuming N805.7 billion, leaving N668 for recurrent component. The zone has a recurrent vote of N695 billion and N671 billion capital, last year.The south-south region has a total budget of N1.77 trillion against N1.6 trillion last year, comprising N1.03 trillion capital and N750.6 billion recurrent expenditure. The oil-rich region spent N949 billion on capital projects and N579 billion on recurrent in 2016.

The south-south region has a total budget of N1.77 trillion against N1.6 trillion last year, comprising N1.03 trillion capital and N750.6 billion recurrent expenditure. The oil-rich region spent N949 billion on capital projects and N579 billion on recurrent in 2016.

The southeast’s total budget this year is N581.2 billion, about N90 billion increase from previous year’s N490 billion. It is made up of N324 billion capital and N257.3 billion recurrent votes; which is slightly higher than last year’s N242 billion and N248 billion respectively.

Huge recurrent expenses
The seven states with swollen recurrent expenses are Plateau, where Governor Samuel Lalong budgeted N68.5 billion for recurrent, leaving N64.3 billion for capital.

Osun State Governor Abdulrauf Aregbesola budgeted N138.2, allocating N75.8 billion for recurrent and N62.4 billion for capital votes.

Another state in this league is Nasarawa, where Governor Tanko Al-Makura, budgeted N67 billion, out of which N37 billion is for recurrent and N30 billion for capital expenditure.

In Yobe, Governor Ibrahim Gaidam budgeted N69 billion for the year, setting aside N42 billion for recurrent spending and N27 billion for capital projects. Governor Ayodele Fayose’s Ekiti State also has a higher recurrent vote, standing at N55.6 billion out of N94 billion, leaving N38.4 billion for capital expenditure.

Abia State votes N103 billion, setting aside N57.4 billion for recurrent and N45.1 billion for capital spending.

Among the oil-rich states, only Bayelsa and Delta’s recurrent budgets exceeded their capital votes. Of the N271 billion Delta expenditure, N152 billion is for recurrent and N119 billion for capital expenses.

Bayelsa State Governor Henry Seriake Dickson budgeted N221 billion for the year. Recurrent vote will consume N137 billion, leaving N84.3 billion for capital spending.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

CBN Pays N14.35 Billion for 263,860 Meters to End Estimated Billings

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prepaid meter

CBN Pays N14.35 Billion for 263,860 Meters to End Estimated Billings

The Central Bank of Nigeria (CBN) said it has disbursed a total sum of N14.35 billion to the Distribution Companies of Nigeria (DisCOs) for the payment of 263,860 meters under the National Mass Metering Programme (NMMP).

In November 2020, the Federal Government announced that it would make funds available for 1 million meters in the first phase of President Buhari Mass Metering Initiative at no cost to consumers.

Between November 2020 and January 2021, the Federal Government through the CBN has disbursed N14.35 billion.

However, according to the apex bank DisCOs must pay back the amount disbursed based on the previously agreed amortisation schedule.

The facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule. The repayment is to be deducted from payments made by consumers into the DisCos accounts with Deposit Money Banks (DMBs),” the CBN stated.

The maximum tenor of the facility is 10 years but not exceeding 2030, while the moratorium on the principal amount is for a period not exceeding 24 months from the date of loan disbursement.

A week ago, the Ibadan Electricity Distribution Company (IBEDC) announced it has commenced the distribution of 104,0000 free meters in Ibadan, Oyo State.

This, the IBEDC said was under the ongoing National Metering Scheme of president Muhammadu Buhari.

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FG Borrows N2.36 Trillion from Capital Market in 2020

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President Buhari

FG Borrows N2.36 Trillion from Capital Market in 2020

Mr. Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, said the Federal Government borrowed N2.36 trillion from the nation’s capital market in 2020.

The CEO disclosed this at the 2020 market recap/2021 outlook held on Tuesday.

He said the Federal Government issuances account for 92 percent of the total bond issued in the market in the year.

Onyema further explained that corporate organisations leveraged on low yield environment to expand and embark on debt refinancing, raising a total of N192 billion,

Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 per cent from N12.92tn in 2019 to N17.50tn,” he said.

Onyema noted that “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.

“For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index emerged the best-performing index in the world, surpassing the S&P 500 (+16.26 per cent), Dow Jones Industrial Index (+7.25 per cent) and other global and African market indexes, to post a one-year return of +50.03 per cent.

Speaking on product results for the year, the CEO said, “The Nigerian equities market got off to a strong start in 2020, returning 10.4 per cent by the eighth trading session. By October, the equities market entered a much-awaited bull run.

“Buoyed by the formal declaration of the US president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03 per cent) and erase losses of -14.90 per cent recorded in 2019.

“During its remarkable year end run, the ASI gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.

“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 per cent, from N12.97tn in 2019 to N21.06tn in 2020 while market turnover saw an uptick of 7.25 per cent, from N0.96tn in 2019 to N1.03Tn in 2020.

“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 per cent to N1.42tn, from N148.77bn.

“Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value (retail: 44.98 per cent; institutional: 55.02 per cent) while foreign portfolio investors accounted for 34.72 per cent.”

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Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

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Airtel Financial Results

Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

Airtel Africa, one of the leading telecommunications companies in Africa, on Wednesday announced it will report its financial statements for the nine months ended December 31, 2020 on January 29, 2021.

The telecom giant disclosed in a statement signed by Simon O’Hara, Group Company Secretary.

The statement reads “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, will announce its results for the nine months to 31 December 2020 on 29 January 2021.

“Management will host a conference call on the day of results for analysts and investors at 2:00pm GMT.

“Participants are requested to pre-register for the call by navigating to:
www.diamondpass.net/4467631

“Once registered, participants will receive a calendar invitation with the dial in details for the call.”

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