11 Jan

Daily Watch – Contractors face TIN checks before payments, Road project debts hit ₦2.7trn

  • Nigeria’s political parties must select their candidates for the country’s 2019 presidential election between 18 August and 7 October this year, the electoral commission said on Tuesday in a timetable of the polling process. Presidential and parliamentary elections will be held on 16 February 2019, marking the end of President Muhammadu Buhari’s first term. Buhari has not said if he will seek re-election. In addition to outlining the deadline to select candidates, the timetable published by the Independent National Electoral Commission stated that official campaigns for the presidential and parliamentary elections would begin on 18 November. “The Commission wishes to assure Nigerians that we are determined to strictly adhere to the timetable and schedule of activities,” INEC said.
  • The FG’s liabilities on road projects across the country has hit ₦2.792 trillion, the Power, Works and Housing Minister, Babatunde Fashola told the House of Representatives Committee on Works inquiring into the performance assessment of the 2017 budget. The minister said the mounting debts covered completed projects, inherited claims of past years and ongoing projects across the country. The total allocations to works in the 2017 budget was ₦305 billion, while the 2018 budget estimates currently before the National Assembly contains a combined allocations to works, power and housing of ₦555.8 billion. The total provision for capital projects across all Ministries, Departments and Agencies of government in the 2018 budget is ₦2.4 trillion, implying that if the 2018 allocations were utilised to settle liabilities on road projects alone, the government will still possess a ₦400 billion deficit.
  • Market capitalisation hit ₦14.38 trillion at the end of Tuesday trading for the first time in the NSE’s history. The bourse has crossed the ₦14 trillion mark only three times in its history, with the first time being on June 14, 2014; 53 years after the NSE’s birth. Its benchmark All-Share Index also closed above 40,000 points — the first time since June 2014. There were a total of 47 gainers as against seven losers. Seplat led gainers on the market, gaining ₦10 to close at ₦660 per share. Other gainers that made up the top five gainers were Dangote Cement, Guinness, Conoil and Presco. Nestle led losers on the market, losing ₦50 to close at ₦1450 per share. Other losers that made up the top five losers on the market were Glaxo SmithKline, the Nigerian Aviation Handling Company, Union Bank and UAC Property Development.
  • Contractors of FG MDAs must provide their tax identification number on their invoices before getting paid for services provided. Finance minister, Kemi Adeosun said leakages in revenue remittances by vendors was uncovered by the government’s Project Lighthouse, a system-wide revenue intelligence data-warehouse. “The order is part of resolute efforts by the government to block revenue leakages by the MDAs’ vendors. About ₦100 billion has been discovered as tax revenue shortfall by contractors between 2012 and 2017,” Oluyinka Akintunde, special adviser to the minister on media and communications said. The finance ministry says the leakages were due to a lack of TINs particularly on value-added tax, withholding tax and other related inflows into government coffers.
  • Morison Industries has closed the application list for its ongoing rights issue. The company is raising about ₦502.2 million in new equity funds through a new share sale to existing shareholders. Morison Industries is offering a rights issue of 836.98 million ordinary shares of 50 kobo each at 60 kobo per share on the basis of 11 new ordinary shares for every two ordinary shares of 50 kobo held as at 25 August 2017. According to the NSE, the acceptance period for the issue closed on 5 January. The company’s board of directors had appointed GTI Securities as the stockbroker to handle the supplementary share issuance while GTI Capital will be the issuing house. Morison Investment United Kingdom holds 40 percent equity stake in the company while Nigerian investors hold the remaining. Morison Industries was incorporated in Nigeria in June 1955 and is engaged in the production and marketing of pharmaceuticals, hygiene products and the importation and distribution of medical, surgical and hospital equipment, instruments and consumables.