Economy
FAAC Shares N780.9bn to FG, States, Local Councils
By Adedapo Adesanya
The Federation Accounts Allocation Committee (FAAC) has shared N780.9 billion to the three tiers of government for March 2020.
This is coming at a time the country is battling with revenue generation streams, especially from crude oil sales as prices have continued to trade lower due to the COVID-19 pandemic.
A statement from the Office of the Accountant-General of the Federation announced the disbursement at the end of the virtual FAAC meeting with the representatives of the federal, states and local governments, along with Federal Capital Territory counterparts on Wednesday.
The monthly FAAC meeting for April 2020, where the sharing of the March 2020 revenues was discussed, was held through virtual conferencing in line with the physical distancing directive by the Nigeria Center for Disease Control (NCDC).
According to the statement, the N780.9 billion shared comprised Statutory Revenue, Value Added Tax (VAT), and Exchange Gain.
It was also revealed the balance in the Excess Crude Account (ECA) grew a little to $72.2 million.
The gross statutory revenue for the month of March 2020 was put at N597.7 billion. This was higher than the N466.1 billion received in February 2020 by N131.6 billion.
The statement revealed that Value Added Tax (VAT) yielded gross revenue of N120.3 billion in March 2020 as against N99.6 billion in February 2020, resulting in an increase of N20.7 billion while N62.928 billion was available from Exchange Gain in the month under review.
Giving a breakdown of the figures, from the total revenue of N780.9 billion, the Federal Government (FG) received N264.3 billion, the 36 State Governments received N181.5 billion, while the 774 Local Government Councils received N135.9 billion.
The nine oil producing states; Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, and Lagos received a total of N38.8 billion as 13 percent derivation revenue.
The cost of revenue collection by Revenue Agencies and allocation to North-East Development Commission (NEDC) was N160.4 billion.
It was also disclosed that the Federal Government received N217.8 billion from the gross statutory revenue of N597.7 billion, while the State Governments received N110.5 billion and the Local Governments received N85.2 billion.
Also, from the same purse, the sum of N32.3 billion was given to the relevant states as 13 percent derivation revenue and N151.9 billion as cost of revenue collection by Revenue Agencies and allocation to NEDC.
From the N120.3 billion revenue made from VAT, the FG received N16.8 billion, the 36 states and the FCT got N55.9 billion, while LGAs were allocated N39.1 billion, while the cost of collection by Revenue Agencies and allocation to NEDC was N8.4 billion.
The statement disclosed that from the N62.9 billion Exchange Gain, the Federal Government received N29.8 billion, the states received N15.1 billion while the Local Governments received N11.6 billion and the oil producing states received N6.5 billion.
It was also disclosed that in the month of March 2020, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import and Excise Duties, Oil and Gas Royalties and Value Added Tax (VAT) all recorded substantial increases which resulted in the large volume of money shared.
By Aduragbemi Omiyale
On Tuesday, December 17, 2024, President Bola Tinubu will present the 2025 budget to a joint session of the National Assembly.
The size of the 2025 Appropriation Bill is about N47.9 trillion and would be presented to the parliament for approval.
Speaking at the plenary on Thursday, December 12, 2024, the President of the Senate, Mr Godswill Akpabio, said the presentation by Mr Tinubu would be at the chamber of the House of Representatives.
However, it is not certain if the lawmakers will pass the budget before December 31 to allow for a recent budget cycle of January to December.
Recall that on December 3, the senate approved the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025 to 2027.
This was after the President presented this the National Assembly on November 19 ahead of the consideration of the 2025 budget proposal.
In the MTEF/FSP, the government said it planned to borrow about N9.22 trillion from local and foreign sources to finance the budget deficit.
It pegged the crude oil benchmark at $75 per barrel and a daily oil production of 2.06 million barrels at an exchange rate of N1,400 to $1, and a targeted gross domestic product (GDP) growth rate of 6.4 percent.
At the plenary today, Mr Akpabio informed his colleagues that, “The President has made his intention known to the National Assembly to present the 2025 budget to the joint session of the National Assembly on December 17, 2024.”
By Adedapo Adesanya
Nigeria added 150,000 barrels per day to its crude production in November 2024 as it continues to pursue an ambitious 2 million barrels per day target.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s oil production rose to 1.48 million barrels per day in November, up from 1.33 million barrels per day the previous month.
In its Monthly Oil Market Report (MOMR), OPEC revealed that at 1.48 million barrels per day, it is the continent’s leading oil producer, surpassing Algeria’s 908,000 barrels per day and Congo’s 268,000 barrels per day.
Business Post reports that OPEC doesn’t account for condensates, which Nigeria’s accounts for in its broader 2 million barrels per day target.
Despite the surge in production levels, Nigeria is still under producing its 1.5 million barrels per day output quota under a deal involving OPEC and 10 other producers known as OPEC+.
OPEC said it relied on primary data gotten through direct communication, noting that secondary sources reported 1.417 million barrels per day as Nigeria’s crude production in November — up from 1.4 million barrels per day in October.
The data also shows that OPEC’s total oil production among its 12 members rose by 104,000 barrels per day in the month under review.
According to secondary sources, the total of the 12 OPEC countries’ crude oil production averaged 26.66 million barrels per day in November 2024.
“Crude oil output increased mainly in Libya, Iran, and Nigeria, while production in Iraq, Venezuela, and Kuwait decreased”, OPEC said.
“At the same time, total non-OPEC DoC crude oil production averaged 14.01 mb/d in November 2024, which is 219 tb/d higher, m-o-m. Crude oil output increased mainly in Kazakhstan and Malaysia,” the organisation added.
In a related development, OPEC trimmed its 2024 and 2025 oil demand growth forecasts for the fifth time this year.
Now, the cartel expects the world’s oil demand growth at 1.61 million barrels per day from the previously 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, a 900,000 barrels per day cut from the previously expected 1.54 million barrels per day.
On the changes, OPEC says that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
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