Business
25% of 2022 capital expenditure may not be funded –Economists
ABOUT 25 per cent of the projected N4.5tn capital expenditure in the 2022 Appropriation Act may not be funded, going by the funding priority of the Federal Government in the 2022 fiscal year, findings contained in a report by economists at AgustoConsulting showed.
Economists at AgustoConsulting, a renowned firm in business advisory including economics, finance and strategy, disclosed this in their report on ‘The 2022 Appropriation Act: Impact on the Construction Industry.’
The report was presented at the just concluded business roundtable organised by the Nigerian Institute of Quantity Surveyors and the Federation of Construction Industry, and was obtained by our correspondent from the NIQS in Abuja on Sunday.
In the report, the founding Managing Director, Agusto & Co. Ltd, Olabode Agusto, explained that the plan of the Federal Government, based on the 2022 Appropriation Act, was to spend N14.7tn in 2022.
ABOUT 25 per cent of the projected N4.5tn capital expenditure in the 2022 Appropriation Act may not be funded, going by the funding priority of the Federal Government in the 2022 fiscal year, findings contained in a report by economists at AgustoConsulting showed.
Economists at AgustoConsulting, a renowned firm in business advisory including economics, finance and strategy, disclosed this in their report on ‘The 2022 Appropriation Act: Impact on the Construction Industry.’
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The report was presented at the just concluded business roundtable organised by the Nigerian Institute of Quantity Surveyors and the Federation of Construction Industry, and was obtained by our correspondent from the NIQS in Abuja on Sunday.
In the report, the founding Managing Director, Agusto & Co. Ltd, Olabode Agusto, explained that the plan of the Federal Government, based on the 2022 Appropriation Act, was to spend N14.7tn in 2022.
“Balance available to finance capital expenditure is N3.4tn.” they stated, adding, “this means that the Federal Government of Nigeria should be able to fund N3.4tn out of the planned capital expenditure of N4.5tn (75 per cent).”
Going by the above information, it then implies that about 25 per cent of the capital expenditure in the 2022 Appropriation Act may not be funded by the Federal Government in 2022.
Commenting on this, the President, NIQS, Olayemi Shonubi, stated that the construction sector was vital for the development of the country, stressing that it was important to fund capital projects.
He said, “The construction industry is a major contributor to the Gross Domestic Product of Nigeria and a barometer for measuring the health of the economy due to various linkages and multiplier effects it has on other sectors of the economy and employment.
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“It has therefore become expedient to brainstorm and analyse the details of the Appropriation Act 2022 which commences in June 2022 with special emphasis on this year’s total aggregate expenditure of N17.1tn, a total of N5.4tn is projected to be spent on capital expenditure.”
On his part, the President of FOCI, Nasiru Dantata, said the recent hyper inflationary trend on the basic prices of key construction resources in the country had become a great concern for its members.
He said, “Within the space of January to March 2022, the prices of key basic materials have jumped several points over their original prices at the beginning of the year.
“This position is further compounded by the Variation of Price allowance in all ongoing projects which is limited to five per cent, but are now practically unrealistic in the light of the current hyperinflation of the economy.
“This situation therefore affects the fate of construction projects and activities in the country, critically disrupting contract execution, cash flows and the economics of job creation tied to these ongoing projects.”
Dantata, however, noted that operators in the construction industry were hopeful to get solutions that would ensure the favourable implementation of the 2022 Appropriation Act.
He said industry players were also expecting recommendations on how to resolve some of the challenges faced by the construction sector.
PUNCH
Business
Finally, NERC unbundles TCN, creates new system operator
Finally, NERC unbundles TCN, creates new system operator
The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).
The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.
The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.
By this order, the TCN is expected to transfer all market and system operation functions to the new company.
The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.
The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.
Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”
Business
Naira depreciates again, trades at N1,402/$
Naira depreciates again, trades at N1,402/$
The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.
Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71
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This represents a 0.84 per cent loss when compared to the previous trading date on Tuesday April 30, when it exchanged at 1,390.96 to a dollar.
However, the total daily turnover increased to 232.84 million dollars on Thursday, up from 225.36 million dollars recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira traded between 1,445.00 and N1,299.42 against the dollar.
Naira depreciates again, trades at N1,402/$
Auto
Appeal court takes over NURTW case as NIC withdraws
Appeal court takes over NURTW case as NIC withdraws
The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.
The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.
Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.
The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.
The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.
Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.
With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.
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