General

Delta Got 988% More Revenue Than Osun in H1 2018—NEITI

Published

7 years ago

13/09/2018

By Modupe Gbadeyanka

A total of N3.95 trillion was shared among the federal, states and local government areas of the federation in the first half of 2018 from the Federation Account.

A statement from the Nigeria Extractive Industries Transparency Initiative (NEITI) signed by its Director of Communications and Advocacy, Dr Orji Ogbonnaya Orji, disclosed that the disbursements made by the Federation Accounts Allocation Committee (FAAC) represented an increase of 41 percent when compared to the N2.79 trillion disbursed in the first half of 2017 and a 95 percent increase in the N2 trillion disbursed in the first half of 2016.

According to the latest edition of the NEITI Quarterly Review, a breakdown of the disbursements showed that the federal government received N1.65 trillion, states received N1.38 trillion while local governments got the least share of N795 billion during the period under review.

The disparity in the revenues received by each of the three tiers of government was based on the revenue sharing formula of the federation as stipulated in the constitution.

The NEITI Quarterly Review shows that the lowest monthly figure of N635.6 billion disbursed in the first half of 2018 was N121.4 billion higher than the highest monthly figure (N514.2 billion) disbursed in the first half of 2017 and N218 billion higher than the highest monthly figure (N417 billion) for 2016.

“These figures clearly indicate that revenue accruing to the Federation in the first half of 2018 completely outstripped revenues in the previous two years,” stated the report.

The Quarterly Review further disclosed that total FAAC disbursements in the second quarter of this year was 46 percent higher than the figure for the same period last year and 127 percent higher than the figure for the same period in 2016.

The report noted that while N2 trillion was shared in the second quarter of this year, N1.38 trillion was disbursed during the same period last year and only N886.38 billion was shared in the second quarter of 2016.

“In fact, Q2, 2018 was the first time an amount in excess of N2trillion was disbursed since Q3 2014. This is a run of 14 consecutive quarters of disbursements below N2trillion,” it said.

The phenomenal increase of disbursements recorded in the second quarter of 2018, the report observed, was the highest to the Federation since the third quarter of 2014.

The report attributed the positive development to the rise in crude oil prices and similar increase in oil production.

“Average oil price in 2016 was $43.5 per barrel, while in 2017 oil price averaged $54.2 per barrel. However, in the first six months of 2018, average oil price was $70.6 per barrel. Thus, on the average, oil price increased by 62.2 percent between 2016 and the first half of 2018,” the NEITI Quarterly Review asserted.

“Total oil production in 2016 was 661.1 million barrels while the figure was 690 million barrels in 2017. In 2016, average monthly oil production was 55.1 million barrels while it was 57.5 million barrels in 2017. For the first two months of 2018 for which data is available, average production was 59 million barrels.”

On net FAAC disbursement to states, the review disclosed that during the first half of this year, “the highest receiving state was Delta State with N101.19 billion, while the lowest receiving state was Osun State with N10.24 billion. This implies that Delta State received 988 percent more than Osun State received.”

NEITI postulates that since “disbursements to all states as at June 2018 exceeded 60 percent of total disbursements in 2017, it is also likely that FAAC disbursements to all states in 2018 will exceed their 2017 values.”

The NEITI Quarterly Review also looked at the deductions made from the allocations to the states. The report identified five states with the lowest deductions as a percentage of disbursements as Anambra (2.89 percent), Yobe (2.93 percent), Jigawa (3.96 percent), Enugu (6.72 percent), Nassarawa (6.74 percent).

In the same direction, states with the highest deductions as percentage of disbursements were Plateau (33.48 percent), Ogun (38.43 percent), Zamfara (41.55 percent), Cross River (54.53 percent) and Osun (141.79 percent).

Another striking feature of the NEITI Report is the significant increase in VAT disbursements during the period under review.

VAT disbursements increased by 35 percent between the first quarter of 2015 and the second quarter of 2018.

The report remarked: “It is interesting that VAT has been generally increasing over time. This bodes well for the government’s efforts at increasing revenue from non-oil sources.”

The NEITI Quarterly Review expressed hope about increased revenues to governments from both oil and non-oil sectors, but cautions that the volatile and unpredictable nature of government revenues will continue to make planning difficult for all tiers of government, increasing difficulties in implementing their budgets.

It highlighted the need to place priority attention to internally generated revenues. The latest issue of the publication is based on data from the National Bureau of Statistics (NBS) and NEITI’s regular attendance at FAAC meetings.

General

Nigeria, Angola, Ghana Fulfil Capital Commitments to Africa Energy Bank

Published

9 hours ago

02/04/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The trio of Nigeria, Angola, and Ghana has fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB) in what is seen as a significant development for Africa’s energy sector.

The AEB aims to finance oil and gas projects across the continent, addressing funding challenges posed by traditional Western financial institutions’ reluctance to support fossil fuel initiatives due to environmental concerns.

Recall that the African Petroleum Producers Organization (APPO) requires that to operate the financial institution, members must get 44 per cent of the capital base of $5 billion.

Each of the 18 members of the group is required to provide at least $83 million and beyond Nigeria, Angola and Ghana, five additional member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast – have pledged to make their payments, aligning with the bank’s goal to commence operations in the first half of 2025.

At the Congo Energy and Investment Forum last week, the Secretary General of APPO, Mr Omar Farouk Ibrahim, said the move to kick-off the bank, which is headquartered in Abuja, Nigeria, is progressing.

AEB is a strategic response to Africa’s need for dedicated financial institutions that understand the continent’s unique energy landscape.

By providing tailored financing solutions, the bank is poised to accelerate energy project development, enhance energy security and drive economic growth.

As more countries contribute their capital shares, the bank is expected to play a pivotal role in unlocking investment, bridging financing gaps and ensuring sustainable energy expansion across Africa.

Nigeria remains sub-Saharan Africa’s largest oil producer, offering significant opportunities in the oil and gas sector, including a 2025 bid round.

The implementation of the Petroleum Industry Act has introduced regulatory reforms to enhance transparency and attract investment, driving major projects forward.

Recent final investment decisions (FIDs) include TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project, yet additional financing is crucial to advancing Nigeria’s gas agenda and unlocking its full potential in the energy transition.

Angola, on its part, is actively diversifying its energy portfolio while advancing major deepwater developments, including TotalEnergies’ $6 billion Kaminho Deepwater Project, Eni’s Agogo Integrated West Hub and a limited public tender, with a long-term goal of increasing production to 2 million barrels per day.

Ghana is strengthening its position as a leading oil and gas player with new commitments from Eni and Tullow Oil. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to enhance offshore exploration, optimize existing assets and advance untapped reserves.

General

Tinubu Congratulates Jim Ovia on Freedom of the City of London Admission

Published

18 hours ago

01/04/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The Chairman of Zenith Bank Plc, Mr Jim Ovia, has been congratulated on his admission to the Freedom of the City of London.

The retired banker was congratulated by President Bola Tinubu in a statement signed by his Special Adviser on Information and Strategy, Mr Bayo Onanuga.

President Tinubu described the honour as a fitting recognition of Mr Ovia’s exceptional contributions to business, innovation, and technology, as well as for his role in shaping Nigeria’s financial landscape and strengthening economic ties between Africa and the rest of the world.

“This honour is a testament to your unwavering commitment to excellence, your pioneering role in the growth of the financial services sector in Nigeria, and your visionary leadership that continues to inspire generations.

“As an accomplished entrepreneur and advocate of innovation-driven development, your recognition in the City of London affirms the global relevance of Nigerian excellence and enterprise,” Mr Tinubu stated, commending the Zenith Bank chairman for being a distinguished ambassador of the nation’s private sector and wished him continued success in his endeavours.

Admission to the Freedom of the City of London is an honour bestowed on individuals either for their service to the city or for their achievements.

General

Lagos to Establish Waste Material Recovery Facility in Badagry

Published

2 days ago

31/03/2025

Adedapo Adesanya

By Adedapo Adesanya

The Lagos State Government is setting up a material recovery facility at Badagry to boost waste management.

The chief executive of the Lagos State Waste Management Authority (LAWMA), Mr Muyiwa Gbadegesin, said this initiative was part of efforts to reduce waste pollution and promote a circular economy.

According to him, LAWMA will close the Olusosun dumpsite at Ojota and other dumpsites to pave the way for the establishment of the facility and other waste-to-energy plants in the metropolis, noting that the construction of the material recovery facility will take about 15 months.

“When we close the dumpsites, we will divert the waste to a material recovery facility at Badagry. We will extract all the biogas to generate electricity and cover the waste.

“In the case of Olusosun, we are looking at working with industrial facilities at the back of the dumpsite, which can use the gas to power their generators,” he said.

Mr Gbadegesin said the state government was partnering with some investors to establish the waste-to-energy plants in strategic places.

“We are planning a biogas facility, we completed the feasibility study last year in partnership with the Swedish Government.

“Sweden has achieved zero waste because it takes up its sewage and organic waste and uses them to produce biomethane in large quantities.

“If they can do it, we can. We are planning to replicate the Swedish model here.

“Out of the 13,000 tonnes of waste generated daily in Lagos State, 6,500 tonnes are organic, which should not be going to landfills.

“We should be able to use the organic waste to produce compost for greenery and agriculture and also to produce biomethane,” he informed the News Agency of Nigeria (NAN) in an interview in Lagos.

Mr Gbadegesin said the feasibility study for the biogas facility was done by LAWMA in partnership with the Lagos State Metropolitan Area Transport Authority (LAMATA), adding, “It will be bringing in 2,000 compressed natural gas-powered buses. Once the biogas plant is completed, they will be using it.”

He noted that LAWMA was in partnership with a Dutch company to generate electricity through waste.

“We want to set it up at Epe. We have closed the landfill at Epe to set up the waste-to-energy plant. This will be set up in partnership with a private investor, a Dutch company, Harvest Waste.”

Mr Gbadegesin said that the Dutch company would support the setting up of the plant to the tune of 100 million euros.

According to the managing director, the plant would take about 2,500 tonnes of waste daily and produce 60 to 80 megawatts of electricity.

“From the development, we are moving to another level. It gives us hope that if we put our minds to development, we can be the best,” he said.