Economy

FG, States Shared N2.3tr in Q3 2018—NEITI

Published

7 years ago

19/11/2018

By Modupe Gbadeyanka

The latest edition of the NEITI Quarterly Review released by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that a total of N2.28 trillion was shared among the three tiers of government comprising federal, state and local governments in the third quarter of 2018.

The disbursements were made by the Federation Account Allocation Committee (FAAC), with the federal government receiving the highest sum of N904.8 billion, followed by states, which received N718.5 billion and local governments receiving the lowest disbursements of N432.1 billion.

“Total FAAC disbursements in the third quarter of 2018 amounted to N2.28 trillion representing a 17.6 percent increase over the N1.938 trillion disbursed in the first quarter of 2018 and 13.5 percent higher than the N2.008 trillion disbursed in the second quarter,” a statement issued by NEITI’s Director of Communications & Advocacy, Mr Orji Ogbonnaya Orji, disclosed.

“It is interesting that with the exception of July, the lowest amount disbursed so far in 2018 is higher than disbursements in all other months in 2016 and 2017,” the statement added.

A breakdown of the disbursed sums for 2016, 2017 & 2018 shows that the disbursements in the third quarter of 2018 (N2.28 trillion) were 31 percent and 18 percent higher than disbursements in the third quarters of the last two years.

NEITI also reports that the last time total disbursements exceeded the N2.5 trillion mark was in the second quarter of 2014 (N2.510 trillion).

Further analysis of the increases as reported by the NEITI Quarterly Review shows that the federal government’s receipt of N904.8 billion in the third quarter of 2018, was 11.3 percent and 7.8 percent higher than the amounts received in the first (N812.8 billion) and second (N839.5 billion) quarters of 2018 respectively.

“The amount disbursed to states represented an increase of 5.1 percent over the N683.5 billion disbursed in the first quarter, and an increase of 3.8 percent over the N692.1 billion disbursed in the second quarter.

For local governments, the amount received was 9.8 percent and 7.5 percent higher than the respective amounts of N393.4 billion and N402.1 billion received in the first and second quarters,” the NEITI Quarterly Review disclosed.

On a year-by-year analysis, NEITI reveals that the increase to third quarter disbursements to states in 2018 were the highest when compared to 2016 and 2017 figures disbursed to other federating units.

A breakdown of the figures showing the level of growth indicates that, “Total disbursements to states in the third quarter of 2018 came to N718.5 billion, representing a growth of 40.1 percent and 22.5 percent over disbursements in the third quarters of 2016 (N512.7 billion) and 2017 (N586.6 billion) respectively” NEITI observes.

The NEITI Quarterly Review continues, “For the LGCs, disbursements in 2018 Q3 totalled N432.1 billion. This figure was 33.2 percent higher than the N324.3 billion disbursed in 2016 Q3, and 18.7 percent higher than the N324.3 billion disbursed in 2017 Q3.

“Total disbursements to the FGN in the third quarters of 2016, 2017 and 2018 were respectively, N697.9 billion, N752.7 billion, and N904.8 billion indicating that in 2018 Q3, the FGN received 29.7 percent higher disbursements than 2016 Q3, and 20.2 percent higher disbursements than 2017 Q3.”

The review further disclosed that total net FAAC disbursements to states in the first nine months of 2018 ranged between N16.41 and N150.59 billion, with Osun and Delta states receiving the lowest and highest amounts respectively.

A comparison of the state-by-state net disbursement shows a stark disparity in the amounts received.

For instance, the net disbursement received by Delta State in January alone sums up to the total net disbursements to Osun State from January to September 2018.

This clearly indicates that disbursements to Delta State were higher than the one to Osun by over 800 percent.

The NEITI Quarterly Review also shows that average monthly net disbursements to states in the first nine months of 2018 ranged between N1.82 billion and N16.73 billion with Osun receiving the least monthly sum and Delta, the highest.

As observed in previous reviews, states that received the highest allocations of N100 billion and above are all in the Niger Delta region and this is on account of the 13 percent derivation.

Furthermore, a comparison of state-by-state debt deductions in the first nine months of 2018 revealed that Lagos State had the highest deduction of N26.84 billion while Yobe State had the lowest deduction of N1.12 billion (a percentage difference of 2,300 percent).

The state with the lowest ratio of deductions to net disbursements was Anambra with 2.85 percent, while Osun had the highest deduction to net disbursements ratio of 132.85 percent, signalling that deductions exceeded disbursements to Osun State.

The review however explained that the wide disparities in disbursements to states were as a result of differences in disbursements arising from the revenue sharing formula, deductions from states due to external debts, contractual obligations, among others.

The NEITI review advised that the increase in disbursements is a ground for cautious optimism in the fiscal positions of all tiers of government, noting that the upswings and downswings pattern is reflective of the volatile nature of revenue resulting from reliance on primary commodity exports The publication also observed that while increase in revenue will reflect positively on the fiscal situation of the federating units, states will still have to struggle to finance their budgets considering their poor Internally Generated Revenue (IGR).

“There is virtually none of the states that can adequately finance their budgets from IGR and FAAC disbursements. States will have to resort to different levels of borrowing”, the NEITI review noted.

The NEITI Quarterly Review, designed to provide timely information and data, is a tool to support citizens’ engagement, advocacy, constructive debate, information sharing and enlightenment in tracking the utilization of public funds for purposes of development.

NEITI’s interest in FAAC disbursements and the statutory recipients is in view of the fact that more than 50 percent of the funds are derived from the extractive industry. Net Disbursements and Total Deductions from States January to September 2018

Economy

Customs Street Chalks up 0.12% on Santa Claus Rally

Published

6 hours ago

25/12/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.

Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.

In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.

Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.

Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.

On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.

Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.

Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.

Economy

Yuletide: Rite Foods Reiterates Commitment to Quality, Innovation

Published

6 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.

In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.

Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.

“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.

He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.

Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.

“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”

Economy

Naira Appreciates to N1,443/$1 at Official FX Market

Published

6 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.

Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.

At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.

Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.

This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.

Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.

Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.

As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.

The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.

Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.