Business
Experts Blame Non-Passage Of Budget For Liquidity Crisis
Some financial market operators on Monday called on the National Assembly to fast track the passage of the 2017 Budget to boost liquidity in the economy and ensure its effective implementation.
They told newsmen in Lagos, Monday, that budget approval was necessary to stimulate the economy through government spending.
Head Research, SCM Capital Ltd., Mr Sewa Wusu, called for the quick passage of the budget to stimulate economic activities, noting that non-passage of the budget was affecting various sectors of the economy.
Wusu said that the late passage would affect the budget implementation, especially the capital budget.
He said that the budget approval should be hastened for government to hit the ground with implementation as the highest spender in the country.
Wusu, however, attributed the zigzag performance at the stock market to low confidence of both local and foreign investors.
He said that investors were still weary of market outlook due to macro economic development.
Wusu attributed foreign investors’ lack of confidence in the market to foreign exchange issues, noting that they were yet to be convinced of the Forex supply side in spite of the apex bank’s regular intervention.
He said that investment in the market, with the turn of events, was for investors with high risk appetite.
A Professor of Economics, Sheriffadeen Tella of the Olabisi Onabanjo University, Ago-Iwoye, said that budget approval delay would affect the multiplier effects on sectoral expansion and employment generation.
Tella said that the stock market had failed to respond to some impressive results declared so far.
According to him, this is because people have low income which is largely devoted to meeting basic needs than investment in the face of rising prices.
He added that Nigerians were generally risk averse and were yet to overcome the negative effects of loss of fund in the protracted economic crisis of the recent past.
Reports say that a turnover of 1.31 billion shares worth N10.32 billion were exchanged by investors in 13,042 deals last week against 1.03 billion shares valued at N7.98 billion exchanged hands in 13,441 deals in the preceding week.
The Financial Services industry, when measured in volume terms, led the activity chart with 1.14 billion shares worth N6.03 billion traded in 7,518 deals.
It contributed 87.01 per cent and 58.39 per cent to the total equity turnover volume and value.
The Consumer Goods sector followed with 71.21 million shares, valued at N2.31 billion transacted in 2,261 deals.
The third place was occupied by Services Industry, with a turnover of 29.39 million shares worth N24.59 million in 258 deals.
The NSE All-Share Index and market captialisation depreciated by 0.77 per cent and 0.80 per cent to close the week at 25,454.93 and N8.807 trillion respectively against 25,653.16 and N8.878 trillion achieved in the previous week.
Lafarge Africa led the gainers’ table for the week in percentage terms, improving by 13.92 per cent or N5.01 to close at N41.01 per share.
Fidson Healthcare followed with a gain of 13.48 per cent or 12k to close at N1.01, while Livestock Feeds increased by 10.94 per cent or 7k to close at 71 per share.
On the other hand, Guinness led the losers’ chart in percentage terms, dropping by 9.77 per cent or N6.50 to close at N60 per share.
Seplat trailed with a loss of 9.73 per cent or N38.72 to close at N359.28, while Diamond Bank shed 8.51 per cent or 8k to close at 86 per share.
The Nigerian Content Development and Monitoring Board (NCDMB), in partnership with a firm, Sweetcrude Ltd., has announced detailed selection criteria for the inaugural “Champions of Nigerian Content Awards”, designed to honor outstanding contributions to local content development in Nigeria’s oil and gas sector.
The Tide learnt that the event, scheduled to hold 21st May, 2025, at the NCDMB’S content tower headquarters in Yenagoa, capital of Bayelsa State, will recognize individuals and organizations that have demonstrated exceptional commitment to advancing Nigerian Content in 2024.
The Tide further gathered that the ceremony will coincide with the Nigerian Oil and Gas Opportunity Fair (NOGOF), which promises to spotlighting industry excellence and contributions to national economic transformation.
A statement by the Board’s Directorate of Corporate Communications and Zonal Coordination says the event has 12 Award Categories, which include, “Nigerian Content Icon of the Year”, “Nigerian Content Lifetime Achievement Award”, “Nigerian Content International Upstream Operator of the year”, and the “Nigerian Content Independent Upstream Operator of the year”.
Others are, “Nigerian Content Midstream Operator of the year”, “Nigerian Content Downstream Operator of the year”, “Nigerian Content International Service Company of the year”, Nigerian Content Indigenous Service Company of the year”, and the “Nigerian Content Innovator of the year”.
Also included are, “Nigerian Content Financial Services Provider of the year”, “Nigerian Content Media Organization of the year”, and “Women in Leadership Award for Promoting Gender Equality and Empowerment”.
According to the NCDMB, the criteria for oil and gas operators will include key and empirical benchmarks such as Production output for crude oil and gas volumes, Compliance with Nigerian Content Plans (NCPs) and Nigerian Content Compliance Certificates (NCCCs).
Other criteria are adherence to NOGICD Act reporting requirements, such as submission of Nigerian Content Performance Reports and Employment & Training Plans.
The Board’s statement added that similar criteria will apply to financial institutions, media organizations, and individuals, ensuring a transparent and merit-based selection process.
“Winners for the Nigerian Content Icon of the Year, Innovator of the Year, and Women in Leadership Award will also be selected based on measurable performance indicators.
“The Advisory Committee of Industry Titans will Oversee the process to uphold the prestige of awards. The Committee consist of distinguished experts set up to oversee nominations and validate winners”, the NCDMB said.
Members of the committee, according to the Board, include: Pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa; Secretary-General, African Petroleum Producers Organization, Dr. Omar Farouk; and former Zonal Operations Controller, DPR, Mr. Woke Akinyosoye.
The Statement quoted the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, as emphasizing that the awards aim to becoming the oil and gas sector’s equivalent of the Oscars, celebrating genuine impact rather than mere participation.
“This recognition is reserved for those who have gone beyond compliance to drive tangible growth in Nigerian Content.
“With a focus on credibility, compliance, and measurable impact, the Champions of Nigerian Content Awards is poised to set a new standard for excellence in Nigeria’s energy sector”, the NCDMB Executive Scribe said.
By: Ariwera Ibibo-Howells, Yenagoa
Nigeria’s apex Banking institution, Central Bank of Nigeria (CBN), has declared that Federal Government’s debt servicing increased to N696billion in January 2025.
The CBN’s recently published Economic Report revealed a precarious fiscal position, which worsened in January 2025 as debt servicing obligations exceeded total retained revenue by a wide margin.
According to the report, the Federal Government’s debt servicing obligations for the month stood at N696.27bn, while total retained revenue amounted to only N483.47bn, indicating that debt service alone consumed about 144 per cent of all government earnings.
This development highlights the growing debt burden and dwindling fiscal space facing Africa’s largest economy.
According to the report, despite slight improvements in some revenue categories, the retained earnings were grossly inadequate to cover obligatory debt repayments, exposing the government’s continued reliance on borrowing to meet basic obligations.
The report further revealed that retained revenue in January 2025 only recorded a marginal 0.89 per cent increase when compared with the N479.21bn generated in the corresponding month of 2024.
”FGN retained revenue declined in the review period, owing largely to lower receipts from Federal Government Independent Revenue and FGN’s share of exchange gain.
“At N0.48tn, provisional FGN retained revenue was 69.19 and 70.40 per cent below the levels recorded in the preceding period and monthly target, respectively”, it revealed.
While this points to stagnation rather than growth, the marginal rise was wiped out by the overwhelming debt service obligations.
The retained revenue components showed that the Federation Account contributed N167.69bn, while the VAT Pool Account delivered N90.73bn.
By: Corlins Walter
The Federal Government has announced plans to commence the payment of the outstanding N35,000 wage award arrears owed workers in the Federal Civil Service.
A statement issued by the Office of the Accountant-General of the Federation (AGF), which was signed by the Director of Press and Public Relations, Bawa Mokwa, said the outstanding arrears will be paid in instalments, with workers set to receive N35,000 per month for five months.
It clarified that the first tranche of the wage award arrears would be released immediately after the April salary payment.
“The wage award arrears was not paid with the April 2025 salary; it will come immediately after the salary is paid”, the statement read.
The Federal Government had earlier disbursed wage awards to federal workers for five months as part of efforts to cushion the impact of economic reforms. However, five months’ arrears remained unpaid.
The AGF office further reiterated the government’s commitment to fully implementing all policies and agreements relating to staff remuneration and welfare, noting that such efforts were geared towards enhancing productivity and operational efficiency across ministries, departments, and agencies.
The N35,000 wage award was introduced in 2023 as a palliative measure to support workers following the removal of the petrol subsidy and other economic adjustments.
In January this year, the Federal Government assured workers that it would clear the arrears of the N35,000 wage award, just as it also said the government had resumed the payment of the wage award.
The government also reiterated its commitment to addressing issues in the National Minimum Wage agreement reached with the Organised Labour in 2023.
The Minister of Labour and Employment, Nkeiruka Onyejeocha, had disclosed the government’s commitment towards implementing agreements with trade unions during separate meetings with the leadership of the Trade Union Congress and Congress of University Academics, in Abuja.
The Nigeria Labour Congress had criticised the Federal Government over the delay in the payment of the minimum wage for certain workers in the federal civil service.
Also, the Federal Government had earlier blamed the delay in payment on the prolonged approval of the 2025 budget.
By: Corlins Walter