Connect with us

Finance

FG, States, LGAs Share N4.55tn in Nine Months

Published

on

Naira - Investors King
  • FG, States, LGAs Share N4.55tn in Nine Months

The three tiers of government shared a total of N4.55tn between January and September this year as disbursements from the Federation Accounts Allocation Committee.

According to the latest quarterly report of the Nigerian Extractive Industries Transparency Initiative, released in Abuja on Wednesday, out of the N4.55tn that was shared in the review period, N1.76tn was disbursed in the third quarter as against the N1.38tn and N1.41tn shared in the second and first quarters of the year, respectively.

It also showed that between January and September, the Federal Government received the highest allocation of N1.85tn, followed by state governments with N1.51tn and the 774 local governments with N913.8bn.

The sum of N271.78bn went to the Department of Petroleum Resources, Nigeria Customs Service and the Federal Inland Revenue Service as costs of revenue collection.

Further analysis showed that the revenues shared to the federating units were higher in the third quarter, a situation that has been the pattern for some years now.

For instance, while the Federal Government got N549.41bn in the second quarter of 2017, the third quarter figure was N752.79bn, an increase of 37.02 per cent. The trend was the same for the states and local governments, as they received N586.58bn and N363.98bn in the third quarter as against N467.13bn and N280.42bn in the second quarter, respectively.

The report noted that the percentage increases between the two quarters for the two tiers of government were 25.57 per cent and 29.8 per cent.

It attributed the reason for the increases in FAAC disbursements to the three tiers of government in the third quarter to the positive developments in the oil sector occasioned by resurgent crude prices and increased production levels.

The NEITI quarterly review report based its analysis on data obtained from FAAC, the National Bureau of Statistics, Federal Ministry of Finance and the Budget Office of the Federation.

The report stated that the “upward trend in the FAAC disbursements to the three tiers of government are encouraging signs, which if sustained, will improve government expenditures, help to boost economic activities and move the country further away from recession.”

The report also stated that Nigeria’s revenue in the first half of 2017 was about 49 per cent lower than the budgeted figures.

It stated that while the government projected N5.368tn revenue inflow in its 2017 fiscal framework for the first six months of the year, the actual inflow was N2.712tn.

The government’s half-year projections were N2.67tn for oil and N2.7tn for non-oil revenues, but the actual revenue fell short of projections.

“Actual oil revenue was N1.587tn, representing a shortfall of N1.079tn, implying a 40.4 per cent underperformance. Non-oil revenue fared slightly worse, as only 41.6 per cent of the projected revenue was realised. Actual non-oil revenue totalled N1.125tn, indicating a shortfall of N1.575tn,” the report stated.

It pointed out that while the government projected that the non-oil sector would outperform the oil sector, the latter performed better by as much as 41 per cent in revenue generation, raking in N1.587tn as against N1.125tn for the non-oil sector.

Figures for the three tiers of government were no different. The Federal Government had hoped for N2.542tn revenue flow for the first half of the year, but the actual revenue was N1.497tn.

A breakdown of the inflows showed that the oil sector accounted for a larger part of the shortfall, with a 60 per cent drop, while the non-oil sector underperformed by 49 per cent.

“Budgeted half-year inflow from the oil sector was N1.061tn but actual oil inflow to the Federal Government was N414bn. The Federal Government’s budget estimated half-year non-oil revenue inflow at N705bn, but realised only N352bn, indicating a 49 per cent shortfall,” the NEITI report stated.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Banking Sector

Access Holdings Plc Plans $1.8 Billion Capital Raise

Published

on

Access bank

Access Holdings Plc, the parent company of Nigeria’s leading bank, Access Bank Plc, has unveiled ambitious plans for a $1.8 billion capital raise aimed at fueling its expansion efforts over the next four years.

The strategic move comes as Access sets its sights on becoming one of the largest lenders on the African continent.

During a conference call with investors in Lagos, executives outlined the company’s intention to raise $1.5 billion, or the naira equivalent, through the issuance of shares, bonds, or other financial instruments.

Also, Access aims to generate up to 365 billion naira ($257 million) by selling shares to existing investors.

Bolaji Agbede, acting group chief executive officer, clarified that the current fundraising initiative primarily involves a rights issue.

The capital infusion is earmarked to support Access’s ambitious growth plan, which commenced last year.

The bank intends to expand its footprint into new markets, including Morocco, Egypt, and the United States, as part of a broader strategy to double the share of assets outside its home market by 2027.

With operations spanning 22 countries, including the United Arab Emirates and the UK, Access Bank is positioning itself for significant international growth.

The recent appointment of Bolaji Agbede as acting group CEO follows the passing of co-founder and former CEO, Herbert Wigwe, adding a layer of significance to the bank’s future direction.

Access’s acquisition of National Bank of Kenya Ltd. underscores its commitment to expanding its presence in East Africa’s largest economy.

As Access Bank charts its course for expansion, the $1.8 billion capital raise signals its determination to seize opportunities in a rapidly evolving financial landscape, both domestically and across the African continent.

Continue Reading

Finance

OPEC+ Production Cuts and Geopolitical Tensions Propel Oil Price to Over $87

Published

on

Crude oil - Investors King

Oil price surged past the $87 price level on Thursday on the back of production cuts by OPEC+ nations and escalating geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, rose by $1.39 or 1.6% to $87.48 a barrel, its highest level since October 27.

OPEC+, the alliance of major oil-producing nations, has remained resolute in its commitment to curtail output, effectively tightening the supply of crude in the market.

Despite calls for increased production to alleviate soaring prices, the alliance has opted to maintain its course, further buoying the market sentiment.

Simultaneously, geopolitical tensions have added fuel to the fire. Attacks on Russia’s energy infrastructure, particularly by Ukraine, have sparked concerns over potential disruptions to the global oil supply chain.

Despite diplomatic efforts to deter such actions, the situation remains precarious, contributing to market anxieties.

Analysts suggest that these price surges may have long-term implications for global economies, particularly for oil-importing nations heavily reliant on stable energy prices.

Furthermore, the impact of rising oil prices on inflation and consumer spending patterns remains a point of contention among economists and policymakers.

As the world watches with bated breath, the trajectory of oil prices hinges on a delicate balance between geopolitical developments, OPEC+ policies, and the broader economic landscape.

For now, the $87 threshold serves as a stark reminder of the volatility and interconnectedness inherent in the global energy markets.

Continue Reading

Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

Published

on

Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending