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Why INEC is requesting N305 billion for 2023 general elections

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1640065221 1640065219 744 Prof. Mahmood Yakubu

Nigeria’s electoral regulatory body, Independent National Electoral Commission (INEC) presented a budget of N305 billion to the National Assembly, for the 2023 general elections.

The Presentation was done on Monday by Its chairman, Prof. Mahmood Yakubu, during the Senate Committee on Appropriations hearing.

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INEC was expected to present the electoral budget in its 2022 budget which is set to be passed by lawmakers.

Why INEC is demanding N305 billion

INEC said the N305 billion is different from the N40 billion yearly budget request of the electoral body, citing that N100 billion had already been disbursed of the total projected expenditure, and stating however, that it would not be enough for adequate preparation towards 2023 general elections.

“We made a submission for N305 billion for the 2023 general elections in a very comprehensive 22-page document with 260 budget lines.

“In submitting the Executive proposal to the National Assembly, N140 million was made available to INEC as a one-line item in the budget.

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“As usual, we broke it down and submitted same to the committee that oversights INEC in both the House of Representatives and the Senate.

“The N140 billion was broken into two; we take it that N40 billion is our regular budget as an agency of government and N100 billion is the first tranche of the 2022 budget,” the INEC chief said.

He added that INEC had already made provisions stating that the N40 billion annual budget include expenditures for particularly off-season elections.

INEC said one of the reasons for the increased budget proposal is that activities have to be conducted before the general elections.

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“Party primaries must be conducted and concluded before the elections and names of candidates submitted, registration of voters would have to be concluded before the elections.

“Printing of Permanent Voters Cards would have to be concluded before the elections and some of the critical election technology must be concluded and procured before the elections,” Yakubu said.

In case you missed it

Recall Nairametrics reported that in its 2022 electoral forecasts, SBM Intelligence stated that most of the political blocs had begun to move, in preparation for campaigning and deal-making, especially as in 2022, gubernatorial elections would be held in 2 states—Osun and Ekiti.

Source: NairaMetrics

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Business News

FMDQ delays reporting official exchange rate denying Nigerians of vital information

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1642722005 Bola Onadele Koko CEO FMDQ

The major source for tracking the official exchange rate in Nigeria, the FMDQ, has stopped publishing the official (I&E Window) exchange rates on its website at the close of business, denying the public very vital information used for transactions.

This is based on observations made by various FMDQ users who rely on the information on a daily basis. This was also confirmed by analysts at Nairametrics who have monitored the situation over the past 10 days when it started. The data has always been published daily on the front page of the website of the FMDQOTC since the window was introduced in 2017.

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However, the FMDQ website now reports the official rate with a 2-day delay, a decision that is expected to significantly impede quick investment decisions by Nigerian investors and also deprive users of this information of vital data.

Nigerians denied vital data

The Investors & Exporters Window (I&E) official exchange rate is relied upon by tens of thousands of businesses in the country for making business decisions such as imports and exports, conversion of FX balances, payment for goods and services, etc.

It is also relied on by foreign investors in determining the conversion rate for investments into the country. It is also used by academics, researchers, and the media in documenting and analyzing the exchange rate and its impact on Africa’s largest economy.

Not only did the FMDQ delay the closing price for the exchange rate, but it also delayed publishing opening and closing rates, daily highs and lows, as well as daily turnover. It also extended the delay to other daily indices like the money market rate, S&P Sovereign bond index, NIBOR, NAFEX as well as the NITTY rates. 

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This change was first noticed on Monday, 11th January 2022, when the rate as of the close of trading in the previous week was not updated. It was initially seen as a glitch on the website, but almost two weeks down the line, it appears the group is beginning to deprive the public of real time-sensitive data. 

FMDQ NAFEX

What is the motive?

Speculations among users of the information suggest this might be a playbook of the Central Bank whose Deputy Governor chairs the board of FMDQOTC. The Central Bank has often been criticized on social media of often notorious for removing vital economic reports from its website or delaying its release, especially where the numbers are not favourable. 

However, a reliable source at the FMDQ reveals the decision was actually driven by financial and business considerations explaining that the delay was deliberate. The source explains FMDQ recently revamped its product offering and considered close of day indicators data it can monetize, thus the two-day delay.

The source claimed anyone who wants to know the closing exchange rate and market turnover should either pay for it to get it during close or business or get it for free after two days.

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The decision by FMDQ to delay vital data on its website home page is a huge shift from its rival Nigerian Exchange which publishes vital stock market data and yet still operates premium service offering for users who want more information and insights to trades, valuations, etc.

Recall, that the Central Bank banned AbokiFX, an online blog displaying parallel market rates last year, with allegations of rate fixing and manipulation last year. 

How does this affect you?

  • Nairametrics and other media outlets report the daily movement in the official market, which serves the purpose of feeding the investing public and FX interested Nigerians the latest changes in the official exchange rate.
  • In addition, in May 2021, the Central Bank adopted the rate at the I&E window as its official exchange rate dropping decades-long use of a fixed exchange rate. 
  • The information, which is meant to educate and inform prompt decisions is now being intentionally withheld by the trading house, which should ideally feed the public with timely and accurate data. 
  • Suffice to add that the Central Bank clampdown on abokiFX last September suggests it prefers that Nigerians cite the FMDQ as the source for determining exchange rate and not the black market. This decision by the FMDQ to delay rates may not help this situation.
  • Nigerians already rely on P2P websites to determine black market rates.

... FMDQ delays reporting official exchange rate denying Nigerians of vital information Read More on ... Nairametrics.

Source: NairaMetrics

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Continue Reading

Business News

FMDQ delays reporting official exchange rate denying Nigerians of vital information

Published

on

1642722005 1642722004 547 Bola Onadele Koko CEO FMDQ

The major source for tracking the official exchange rate in Nigeria, the FMDQ, has stopped publishing the official (I&E Window) exchange rates on its website at the close of business, denying the public very vital information used for transactions.

This is based on observations made by various FMDQ users who rely on the information on a daily basis. This was also confirmed by analysts at Nairametrics who have monitored the situation over the past 10 days when it started. The data has always been published daily on the front page of the website of the FMDQOTC since the window was introduced in 2017.

Advertisement

However, the FMDQ website now reports the official rate with a 2-day delay, a decision that is expected to significantly impede quick investment decisions by Nigerian investors and also deprive users of this information of vital data.

Nigerians denied vital data

The Investors & Exporters Window (I&E) official exchange rate is relied upon by tens of thousands of businesses in the country for making business decisions such as imports and exports, conversion of FX balances, payment for goods and services, etc.

It is also relied on by foreign investors in determining the conversion rate for investments into the country. It is also used by academics, researchers, and the media in documenting and analyzing the exchange rate and its impact on Africa’s largest economy.

Not only did the FMDQ delay the closing price for the exchange rate, but it also delayed publishing opening and closing rates, daily highs and lows, as well as daily turnover. It also extended the delay to other daily indices like the money market rate, S&P Sovereign bond index, NIBOR, NAFEX as well as the NITTY rates. 

Advertisement

This change was first noticed on Monday, 11th January 2022, when the rate as of the close of trading in the previous week was not updated. It was initially seen as a glitch on the website, but almost two weeks down the line, it appears the group is beginning to deprive the public of real time-sensitive data. 

1642722004 986 FMDQ NAFEX

What is the motive?

Speculations among users of the information suggest this might be a playbook of the Central Bank whose Deputy Governor chairs the board of FMDQOTC. The Central Bank has often been criticized on social media of often notorious for removing vital economic reports from its website or delaying its release, especially where the numbers are not favourable. 

However, a reliable source at the FMDQ reveals the decision was actually driven by financial and business considerations explaining that the delay was deliberate. The source explains FMDQ recently revamped its product offering and considered close of day indicators data it can monetize, thus the two-day delay.

The source claimed anyone who wants to know the closing exchange rate and market turnover should either pay for it to get it during close or business or get it for free after two days.

Advertisement

The decision by FMDQ to delay vital data on its website home page is a huge shift from its rival Nigerian Exchange which publishes vital stock market data and yet still operates premium service offering for users who want more information and insights to trades, valuations, etc.

Recall, that the Central Bank banned AbokiFX, an online blog displaying parallel market rates last year, with allegations of rate fixing and manipulation last year. 

How does this affect you?

  • Nairametrics and other media outlets report the daily movement in the official market, which serves the purpose of feeding the investing public and FX interested Nigerians the latest changes in the official exchange rate.
  • In addition, in May 2021, the Central Bank adopted the rate at the I&E window as its official exchange rate dropping decades-long use of a fixed exchange rate. 
  • The information, which is meant to educate and inform prompt decisions is now being intentionally withheld by the trading house, which should ideally feed the public with timely and accurate data. 
  • Suffice to add that the Central Bank clampdown on abokiFX last September suggests it prefers that Nigerians cite the FMDQ as the source for determining exchange rate and not the black market. This decision by the FMDQ to delay rates may not help this situation.
  • Nigerians already rely on P2P websites to determine black market rates.

... FMDQ delays reporting official exchange rate denying Nigerians of vital information Read More on ... Nairametrics.

Source: NairaMetrics

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Continue Reading