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Again, FG Recovers N793m From Defaulting MDAs

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Again, FG Recovers N793m From Defaulting MDAs

Again, FG Recovers N793m From Defaulting MDAs

By Dipo Olowookere

Federal Government has disclosed that it has recovered an additional N793 million unremitted operating surpluses from three revenue generating agencies accused of short changing the government.

This was revealed in a statement issued by the Ministry of Finance on Wednesday in Abuja.

It said this was made possible by the efforts of the Recovery Committee set up two weeks ago by the Ministry.

The Committee was tasked to recover unremitted N450 billion operating surpluses from Federal revenue-generating Ministries, Departments and Agencies (MDAs).

The surpluses are legally classified as a Federal Treasury Revenue.

The Committee immediately swung into action by issuing demand notices to 17 of the initial 33 affected Agencies, out of which it met with 10.

They included the National Shippers Council, Nigeria Export Promotion Council, National Health Insurance Scheme, Nigeria Civil Aviation Authority and the Nigeria Communication Commission.

The rest were Nigeria Postal Service, National Pension Commission, Nigeria Bulk Electricity Trading Company, Raw Materials Research and Development Council and the Federal Radio Corporation of Nigeria.

According to the statement, the recoveries, totalling N793 million, were made from the Raw Materials Research and Development Council (RMRDC), N278 million; Nigeria Shippers Council, N407 million and Nigeria Export Promotion Council, N108 million.

“So far, the cumulative total amount recovered is N1.44 billion, given the earlier recovery of N650 million from the Nigeria Shippers Council.

“Several other agencies were in the process of submitting repayment plan for approval.

Meanwhile, four agencies that were unable to make it to the meeting due to short notice have been rescheduled to appear before the Recovery Committee.

“They are the Central Bank of Nigeria (CBN), National Pensions Commission (PENCOM), Nigeria Television Authority (NTA) and the National Information Technology Development Agency (NITDA),” it stated.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

Nine Oil-Producing States Got N625.43bn in Two Years—Presidency

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nine oil-producing states

By Adedapo Adesanya

The presidency has revealed that nine oil-producing states received 13 per cent derivation totalling N625.43 billion, subsidy and SURE-P refunds from the federation account in the last two years.

In a statement, the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, listed the states to have received the refunds dating from 1999 to 2021 to include Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

He stated that Abia State received N1.1 billion, Akwa-Ibom – N15 billion; Bayelsa – N1.6 billion; Cross River – N432 million; and Delta – N14.8 billion.

The others included Edo, which received N2.2 billion; Imo – N2.9 billion; Ondo – N3.7 billion and Rivers – N12.8 billion.

The presidential spokesman noted that the states were paid in eight instalments between October 2, 2021, and January 11, 2022, while the ninth to 12th instalments remain outstanding.

He recalled data obtained from the Federation Account Department, Office of the Accountant General of the Federation, which it said showed that a total of N477.2 billion was released to the nine states as a refund of the 13 per cent derivation fund on withdrawal from Excess Crude Account (ECA), without deducting derivation from 2004 to 2019, leaving an outstanding balance of N287.04 billion.

According to Mr Shehu, states also got N64.8 billion as a refund of the 13 per cent derivation fund on deductions made by Nigeria National Petroleum Company  (NNPC) Limited without payment of derivation to oil Producing states from 1999 to December.

He further stated that the benefitting states still have an outstanding balance of N860.59 billion from the refunds, which it said was approved by President Muhammadu Buhari.

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Economy

Nigeria’s Total Pension Fund Rises 1.14% to N14.59trn

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Nigeria's total pension fund

By Adedapo Adesanya

Nigeria’s total pension fund assets rose by 1.14 per cent to a record high of N14.59 trillion as of the end of October 2022 compared to the N14.42 trillion recorded in the previous month.

This was contained in the monthly pension fund industry report released by the National Pension Commission (PenCom) for January and October 2022.

While the fund gained N170 billion, it has increased by a whopping N1.16 trillion from the level it was in December last year.

The number of Retirement Savings Account (RSA) registrations jumped to 9.85 million in the review month, up from 9.79 million registrations recorded as of the end of the previous month.

A total of 30,973 RSA holders switched their pension fund administrators in the third quarter of 2022, representing an increase of 109 per cent compared to the 14,821 holders that switched in the previous quarter.

Investments in corporate debt securities by the PFAs rose by 2.64 per cent month-on-month to stand at N1.53 trillion from N1.49 trillion recorded in the previous month.

On the other hand, PFAs reduced their investments in real estate by 4.93 per cent to N218.1 billion as of October 2022 from N229.4 billion recorded as of the beginning of the month.

The RSA fund II still accounted for most of the fund contribution with N6.35 trillion, representing 43.5 per cent of the total pension funds, followed by RSA Fund III with N4.05 trillion, which represents 27.8 per cent of the total assets.

Meanwhile, existing schemes accounted for 9.9 per cent of the total funds, increasing by N2.41 billion in October 2022 to stand at N1.44 trillion, while the CPFAs accounted for 10.2 per cent of the total funds, standing at N1.48 trillion as of the review period.

Investments in the local stock market dropped by N40.41 billion to stand at N828.17 billion as of the end of October 2022. This happened amid a heavy inflation rate and a hike in interest rates.

On the other hand, investments in federal government debt securities continue to increase as the CBN raised the monetary policy rate to 16.5 per cent in its last MPC meeting, which translates to higher returns in the fixed-income market.

Specifically, total allocation in FGN securities by the pension industry stood at N9.23 trillion as of the review month, accounting for 63.2 per cent of the total funds. Further checks showed that a sum of N8.84 trillion is being invested in federal government bonds.

The number of registered PFAs reduced from 22 to 20 as a result of some mergers and acquisitions as the PFAs tried to meet the required minimum regulatory capital of N5 billion, which was increased from N1 billion by the Nigerian Pension Commission.

Additionally, the total pension fund gained N156.74 billion in Q3 2022, to stand at N14.42 trillion as of September 2022.

Meanwhile, First Guarantee Pension led the list of best-performing PFAs in Q3 2022 with an average ROI of 2.38 per cent, followed by Premium Pensions and Veritas Glanvills Pensions with 2.06 per cent and 2.01 per cent average returns, respectively.

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Economy

Naira Falls at Official Market, Gains at Unofficial FX Windows

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Official FX Market

By Adedapo Adesanya

The Naira continued its roller coaster ride at the foreign exchange (FX) segments in Nigeria on Thursday, depreciating at the Investors and Exporters (I&E) window and appreciating at the Peer-to-Peer (P2P) and parallel market windows.

In the official market, the Naira lost 53 Kobo or 0.12 per cent against the United States Dollar to settle at N445.83/$1 compared with the previous day’s value of N445.83/$1.

The local currency reported the fall despite the value of FX transactions going down during the session. Data showed that the turnover for the day stood at $99.50 million, 43.9 per cent or $77.94 million lower than the $177.44 million published on Wednesday.

In the interbank segment of the forex market, the domestic currency closed flat against the Pound Sterling and the Euro yesterday at N534.67/£1 and N461.79/€1, respectively.

However, in the P2P window, the Nigerian currency appreciated against its American counterpart by N4 to close at N762/$1, in contrast to the N766/$1 it was traded on Wednesday.

In the black market, which is an unofficial FX segment just like the P2P, the Nigerian Naira appreciated against the US Dollar yesterday by N5 to trade at N745/$1.

As for the digital currency market, there was a negative movement across the 10 tokens tracked by Business Post, with Dogecoin (DOGE) recording the heaviest fall, 4.1 per cent, to sell at $0.0990.

Solana (SOL) recorded a 2.9 per cent slump to trade at $13.56, Ripple (XRP) dipped by 2.6 per cent to quote at $0.3892, and Binance Coin (BNB) slid by 2.5 per cent to settle at $288.59.

Further, Bitcoin (BTC) fell by 0.9 per cent to close at $16,941.89, Cardano (ADA) depreciated by 0.7 per cent to finish at $0.3135, Ethereum (ETH) saw a 0.6 per cent depreciation to trade at $1,273.75, and Litecoin (LTC) went down by 0.4 per cent to close at $76.50.

However, the value of the US Dollar Tether (USDT) and the Binance USD (BUSD) remained unchanged during the session at $1.00 each.

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