Economy
FG, States, Councils Share N1.35trn in July from June Revenue
By Adedapo Adesanya
The federal government, the 36 states, and the 774 recognised local government councils of the federation have shared N1.35 trillion from the N2.48 trillion generated as revenue by the nation in June 2024.
The funds were distributed to the beneficiaries at the July 2024 meeting of the Federation Account Allocation Committee (FAAC) held in Abuja on Tuesday.
The monthly event, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, was attended by the commissioners of finance of the sub-national governments.
The money came from Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and an Augmentation of N200 billion.
A communique released after the meeting said the federal government received N459.776 billion, the states received N461.979 billion, and the local government councils got N337.019 billion, while the oil-producing states were given an additional N95.598 billion as derivation, which accounts for 13 per cent of mineral revenue.
The sum of N92.112 billion was given for the cost of collection, while N1037.407 billion was allocated for Transfers Intervention and Refunds.
FAAC at the end of the meeting indicated that the Gross Revenue available from the VAT last month was N562.685 billion as against N497.665 Billion distributed in the preceding month, resulting in an increase of N65.020 billion.
From that amount, N22.507 billion was allocated for the cost of collection and N16.205 billion was deducted for Transfers, Intervention and Refunds, while the balance of N523.973 Billion was distributed to the three tiers of government, of which the FG got N78.596 billion, the states received N261.987 billion and the councils got N183.391 billion.
Accordingly, the Gross Statutory Revenue of N1.2 trillion was received for the month. From the stated amount, the sum of N68.951 billion was allocated for the cost of collection and a total sum of N1.02 trillion for Transfers, Intervention and Refunds.
The remaining balance of N142.514 billion was distributed as follows to the three tiers of government: Federal Government got the sum of N48.952 billion, states received N24.829 billion, the sum of N19.142 billion was allocated to LGCs and N49.591 billion was given to Derivation Revenue (13 per cent Mineral producing States).
Also, the sum of N16.346 billion from EMTL was distributed with the FG taking N2.354 billion, states got N7.846 billion, LGCs received N5.492 billion, while N0.654 billion was allocated for Cost of Collection.
Also, the sum of N472.192 billion from Exchange Difference, which was shared as follows: FG received N224.5 billion, states got N113.877 billion, the sum of N87.794 billion was allocated to LGCs, N46.007 billion was given for Derivation (13 per cent of Mineral Revenue).
It further disclosed an Augmentation of N200 billion which was shared as follows: FG got N105.360 billion, the 36 states received the sum of N53.440 billion, while the sum of N41.200 billion was allocated to local councils.
Companies Income Tax (CIT) and Value Added Tax (VAT) increased significantly, while Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased marginally. Petroleum Profit Tax (PPT), Royalty Crude, Rentals and Customs External Tariff levies (CET) recorded considerable decreases.
According to the communique, the total revenue distributable for the current month of June 2024, was drawn from Statutory Revenue of N142.514 billion, Value Added Tax (VAT) of N523.973 billion, N15.692 billion from Electronic Money Transfer Levy (EMTL), N472.192 Billion from Exchange Difference and Augmentation of N200 Billion, bringing the total distributable amount for the month to N1,35 trillion
By Adedapo Adesanya
Six securities led by FrieslandCampina Wamco Nigeria Plc further weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.48 per cent on Tuesday, June 9.
The notable dairy firm lost N7.87 during the trading day to close at N173.81 per unit compared with the previous session’s N181.68 per unit, Nitrox Industrial Gases Plc depreciated by N2.42 to N21.88 per share from N24.30 per share, Afriland Properties Plc dipped by N1.25 to N15.55 per unit from N16.80 per unit, Food Concepts Plc stumbled by 27 Kobo to N2.48 per share from N2.75 per share, UBN Property Plc dropped 9 Kobo to settle at N2.11 per unit versus N2.20 per unit, and Industrial and General Insurance (IGI) Plc crashed by 4 Kobo to 50 Kobo per share from 54 Kobo per share.
As a result of these losses, the market capitalisation went down by N12.50 billion to N2.593 trillion from N2.606 trillion, and the NASD Unlisted Security Index (NSI) declined by 20.89 points to 4,335.31 points from 4,356.20 points.
Business Post reports that there was a price gainer yesterday, and this was Central Securities Clearing System (CSCS) Plc, which improved its value by N2.65 to N81.13 per unit from N78.48 per unit.
The volume of transactions soared on Tuesday by 644.3 per cent to 1.6 million units from 213,188 units, the value of trades increased by 208.6 per cent to N62.3 million from N20.2 million, and the number of deals surged by 64 per cent to 41 deals from 25 deals.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc, with 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and CSCS Plc with 65.1 million units sold for N4.4 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira was exchanged at N1,360.55/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, June 9, compared with the N1,362.84/$1 it was exchanged a day earlier, indicating an appreciation of N2.29 or 0.17 per cent against the United States Dollar.
It also gained 74 Kobo against the Euro in the same market segment to quote at N1,573.61/€1, in contrast to Monday’s closing price of N1,574.35/€1, but lost N1.71 against the Pound Sterling to trade at N1,823.00/£1 versus the preceding day’s N1,821.29/£1.
At the black market window, the Nigerian currency maintained stability against the greenback during the session at N1,380/$1, and also traded flat at the GTBank FX counter at N1,373/$1.
Market analysts say the ongoing implementation of the fourth edition of the Foreign Exchange Manual by the Central Bank of Nigeria (CBN) since June 1 has strengthened the Naira and the country’s foreign reserves, bolstering confidence in the market.
The new manual is expected to deepen FX transparency, improve liquidity and strengthen market confidence and liquidity, as it aligns with the apex bank’s broader vision of ensuring that businesses and individuals have equal access to FX in a transparent and liquid market.
The gross external reserves have climbed to a record $50.04 billion, reinforcing investor confidence and boosting the CBN’s capacity to support the local currency.
As for the cryptocurrency market, expectations for higher interest rates sapped demand for non-yielding assets. The latest crypto pullback appears driven by a short squeeze rather than fresh buying, as more than $500 million in bearish bets were liquidated and spot demand.
Cardano (ADA) depreciated by 5.5 per cent to $0.1603, Ripple (XRP) declined by 5.2 per cent to $1.11, Solana (SOL) fell by 4.6 per cent to $64.05, Ethereum (ETH) tumbled by 3.5 per cent to $1,626.51, Dogecoin (DOGE) crashed by 3.6 per cent to $0.0835, Bitcoin (BTC) dropped 3.2 per cent to trade at $61,292.98, Binance Coin (BNB) slumped by 2.9 per cent to $585.26, and TRON (TRX) slipped by 0.9 per cent to $0.3220, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.
By Aduragbemi Omiyale
A bill to regulate the cryptocurrency ecosystem in Nigeria passed second reading at the Senate during a plenary on Tuesday presided over by the Deputy Senate President, Mr Jibrin Barau.
Mr Barau, who sponsored the bill titled Virtual Asset Service Providers Regulation Bill, 2026, said that when passed into law, the piece of legislation would protect stakeholders from exploitation and promote confidence.
According to him, it will also place Nigeria among African countries such as Kenya, South Africa and Ghana that have adopted formal regulatory frameworks for cryptocurrency and digital asset transactions, while empowering regulators to license operators and combat fraud, money laundering and terrorism financing.
The Kano lawmaker noted that he pushed for this because of the absence of a comprehensive regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs) in the country.
But he said that with this, the nation’s digital economy would become robust, with investors having the confidence to explore opportunities in the market.
One of the Senators who spoke on the bill, Mrs Natasha Akpoti-Uduaghan, threw her weight behind it, noting that her son, who operates a gaming platform with a large global user base, is having a tough time getting partners to set up operations in Nigeria due to the lack of a robust regulatory environment.
She stated that billions of dollars in potential investments and job opportunities could be lost if the country fails to create the necessary legal framework for emerging digital industries.
According to her, many young innovators are being forced to take their businesses abroad, lauding the sponsor of the bill.
Others who commented on the bill emphasised that virtual assets remain an inevitable feature of the modern global economy, warning that continued regulatory gaps could drive investments and business activities into unregulated channels.
They argued that effective regulation would protect millions of Nigerians, particularly young entrepreneurs and traders, who depend on cryptocurrency and related technologies for employment and income.
After deliberations, the lawmakers passed the bill for second reading and referred it to the Senate Committee on Capital Market for further legislative scrutiny. The team is expected to submit its report within four weeks.
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