Daily Watch – Budget divides Senate along party lines, Azura raises $876 million for power plant

22nd January 2016

  • The Senate is divided, along party lines, on the feasibility of the 2016 Budget. The biggest cause of division is the oil price benchmark of $38 per barrel. These divisions became apparent as Senators began debate on the Appropriation Bill presented to them by President Buhari. APC Senators for the most part hailed the budget proposal and said it could put Nigeria on the path to growth. At the plenary, some PDP Senators described the budget proposal as dead on arrival and asked that it be returned to the President for amendment. They called for a reduction of the budget by 30 per cent and a downward review of the oil benchmark.
  • Azura Power Holdings has announced that it has raised $876 million for its power plant in Edo state, and that construction was set to commence. According to Reuters, Azura, along with its founder and majority shareholder Amaya Capital, said lenders for the independent power plant included Siemens Bank, Standard Bank, CDC and the International Finance Corporation, an arm of the World Bank.
  • The FG plans to have a meeting of capital market stakeholders over the consistent decline in the stock market. Although the government acknowledges that many of the factors affecting the market are outside the control of the stock market operators and regulators, the Vice President and Minister of Finance will meet with operators in order to find a solution to the slide. The market dipped by 17.4 per cent in 2015 and 21 per cent so far this year.