Economy
Allocation to FG, States, LGAs Drops 6.2% in September 2020
By Adedapo Adesanya
The amount shared by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government and relevant agencies dropped 6.2 per cent to N639.9 billion in September 2020 from N682.1 billion in August 2020.
This was disclosed in a communiqué after the physical meeting of the committee for the month of October held at the Federal Ministry of Finance headquarters, Abuja.
The meeting was the first since May due to the coronavirus pandemic and was chaired by the Permanent Secretary, Federal Ministry of Finance, Mr Aliyu Ahmed.
The total distributable revenue of N639.9 billion comprised statutory revenue of N341.5 billion; Value Added Tax (VAT) revenue of N141.9 billion; N39.5 billion from Forex Equalisation; N45 billion from Non-oil Excess Revenue and N72 billion Federal Government Intervention Revenue.
The gross statutory revenue of N341.5 billion available for the month of September 2020 was lower than the N531.8 billion received in the previous month by N190.3 billion or 35.8 per cent.
The gross revenue of N141.9 billion available from the Value Added Tax (VAT) was also 5.5 per cent lower than the N150.2 billion available in the previous month by N8.3 billion.
Giving a breakdown, FAAC indicated that from the total distributable revenue of N639.9 billion; the federal government received N255.7 billion, the state governments received N185.6 billion and the local government councils received N138.4 billion.
The nine oil-producing states received N36.2 billion as 13 per cent derivation revenue, while the cost of collection and transfers had an allocation of N23.9 billion.
It was further stated that the federal government received N161.1 billion from the gross statutory revenue of N341.5 billion; the state governments received N 81.7 billion and the local government Ccuncils received N63.0 billion.
The sum of N21.688 billion was given to the relevant states as 13 per cent mineral revenue and N13.9 billion was the total for the cost of collection, transfers, and refunds.
From the VAT, the FG received the sum of N19.8 billion from the available N141.9 billion, the 36 sub-national governments got N65.9 billion while the 774 local councils received N46.2 billion, while the cost of collection, transfers and refunds had an allocation of N9.9 billion.
From the N39.542 billion Forex equalisation revenue, the central government received N18.1 billion, the state governments received N9.2 billion, the councils received N7.1 billion and the relevant states received N5.1 billion as 13 per cent mineral revenue.
The communique confirmed that out of the N45 billion non-oil excess revenue, the federal government was given N23.7 billion, the state governments shared N12.0 billion, while the local governments got N9.3 billion.
In addition, the federal government received N32.9 billion from the N72 billion Federal Government Intervention Revenue. The states got N16.7 billion, the local councils received N12.9 billion, while the nine states had N9.4 billion as 13 per cent mineral revenue.
In terms of performances, in September 2020, Companies Income Tax (CIT) and Oil and Gas Royalty decreased significantly; Import Duty and Value Added Tax (VAT) decreased marginally, while Petroleum Profit Tax (PPT) and Excise Duty recorded increases.
The balance in the Excess Crude Account (ECA) as of Thursday, October 15, 2020, was $72.4 million.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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