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FG Makes N1.27tn from Operating Surpluses in 10 Years

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  • FG Makes N1.27tn from Operating Surpluses in 10 Years

The Federal Government has made a total of N1.27tn from the payment of operating surpluses by its agencies in the 10 years of operation of the Fiscal Responsibility Act, investigation has shown.

A table prepared by the Fiscal Responsibility Commission, entitled: ‘List of Schedule Corporations and Operating Surplus Remittance to FGN Consolidated Revenue Fund,’ showed that between 2007 and 2016, the scheduled organisations paid a total of N1.27tn into the coffers of the government.

The Fiscal Responsibility Act, 2007 requires listed government agencies to remit 80 per cent of their annual operating surpluses to the Consolidated Revenue Fund.

The operating surplus is made up of revenues accruing to government agencies above what they are approved to spend at the beginning of the budget year.

The table showed that compliance with the payment of the operating surplus had been increasing over the years with more funds coming in the later years. Between 2007 and 2010, which were the formative years of the FRC, a total of N151.95bn was paid by the agencies.

In 2011, a total of N13.85bn was paid into the Consolidated Revenue Fund as operating surplus. This jumped to N132.47bn in 2012 and N153.51bn in 2013.

According to the table, the Federal Government received a total of N244.99bn in 2014. The figure increased further to N323.56bn in 2015, while the collection came down to N253.61bn in 2016. Thus, the highest amount accruing to the Federal Government from operating surpluses in a single year occurred in 2015.

The FRC attributed the increment in the payment of operating surpluses to its monitoring and intervention activities.

The commission said, “In 2016, the commission continued its monitoring of the remittance of the operating surpluses of the scheduled corporations. As usual, a corporation’s annual report from which operating surplus/deficit is determined is prepared in the year succeeding the one being reported on.

“It is instructive that the sum received by the Federal Government as its share of operating surpluses from the corporations has recorded year-on-year increase since 2007 to 2012. It is not in doubt that this improvement in returns to the Federal Government was engendered by the interventions of the FRC.

“However, the sum accruing to the CRF has been on a relative decline as a result of lackadaisical attitudes of agencies to compliance. In order to secure greater compliance, especially in the remittance of operating surplus, the commission intensified efforts at implementing operating surplus template for the calculation of operating surplus liabilities across scheduled corporations.”

It added, “It is hoped that full compliance with the Treasury Single Account will greatly enhance operating surplus remittance as the treasury will have direct access to the funds available to every agency.

“As opposed to chasing corporations for remittances to the CRF, the Office of the Accountant General of the Federation will be advised on what to recover from corporations once the appropriate liability has been ascertained and agreed.”

With a payment of N780.4bn, the Central Bank of Nigeria made the highest remittance of operating surplus to the Federal Government. Other agencies with high remittances include the Nigerian Ports Authority, with N115.58bn; and the Nigerian Communications Commission, N111.22bn.

The Nigerian National Petroleum Corporation is one of the most prominent organisations that has not made a single contribution as operating surplus.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Unity Bank’S Boss Reaffirms Commitment To Going Above And Beyond

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The Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun has commended the lender’s frontline staff for effectively translating its Customer Service Charter thereby forging a culture of responsiveness and exceptional partnership to demonstrate unwavering commitment to customers.

In a message commemorating this year’s Customer Service Week, Mrs. Somefun celebrated with staff in customer service roles and expressed deep appreciation to the bank’s clients for their continued trust and loyalty, which have propelled the bank’s growth and success.

“This year’s theme “Above and Beyond” supports our mission at Unity Bank which enables us to reflect on our collective journey so far where our customers are at the centre of our business,” she said.

Somefun further stated that the Bank is continually investing in innovation as well as revamping existing systems, noting that new tools and strategies would be rolled out in the coming months to further enrich customer experiences. “Whether it’s through improved digital platforms or personalized services, we are committed to enhancing the way you bank with us,” she added.

While acknowledging the essential role frontline staff play in creating lasting relationships with customers, Somefun said that through dedication, resilience, and professionalism, Unity Bank Customer Service has demonstrated that it embodies the “Above and Beyond” theme of this year’s celebration.

“Day after day, our staff go beyond the call of duty, ensuring that every customer interaction is handled with care and excellence. They are the reason our customers continue to choose Unity Bank.”

Also speaking, the Bank’s Chief Customer Service Officer, Elfrida Igebu said that, “Throughout the week, we have seen firsthand what it means to go the extra mile. Our commitment to exceeding expectations, personalizing experiences, and showing genuine empathy has set us apart and created lasting connections with our customers.”

She noted that the different activities lined up to celebrate the customer service week “have strengthened the team’s professional capabilities and reinforced the bonds that make us a united team.”

From October 7 – 11, the Bank lined up several activities to celebrate customers and the exceptional teams in its over 200 branches nationwide, rewarding outstanding staff members, while reflecting on the theme of this year’s event – Above and Beyond.

The Bank has continued to prioritize the customer over the past few years through its increased focus on digital strategy. For instance, over the past four years, it has maintained its commitment to customer service excellence by introducing innovative digital products such as the multilingual USSD banking *7799#, and mobile banking solution, UniFi which have boosted customers’ access to the Bank’s services, while facilitating convenience.

These electronic banking channels are constantly updated with new and exciting features to put the customers first and make their banking experiences top-notch in the industry.

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Banking Sector

Sowore Sues GTBank Over Five-Year Account Freeze, Demands N100 Million in Damages

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Former presidential candidate of the African Action Congress (AAC), Omoyele Sowore, has launched a legal battle against Guaranty Trust Bank (GTB) for freezing his bank accounts for five years.

In a suit filed by his lawyer, Inibehe Effiong, at the Federal High Court in Lagos, Sowore stated that the freezing of his bank accounts was not only illegal but also a violation of his human rights.

Sowore revealed that his bank accounts were frozen without due process by the bank, leaving him financially frustrated.

As a result, the human rights activist is demanding N100 million in damages from GTBank, according to the suit.

Sowore is requesting that the bank immediately unfreeze his accounts and pay the damages. Effiong described the account freezing as unlawful stating “the arbitrary freezing of my client’s accounts without due process is not only illegal but also a blatant violation of his fundamental rights.”

The suit reads, “A Declaration that the Respondent’s act of freezing and restricting the Applicant’s accounts with Account Numbers: (1) 0169510647 (Current Account); (2) 0169510867 (Savings Account); (3) 0169510850 (Current Account); (4) 0171422811 (MasterCard/Visa Debit Account Type) and Account Name: Sowore Omoyele Stephen respectively, all domiciled with the Respondent; Guaranty Trust Bank Ltd is unlawful, unconstitutional, null and void, and a breach of the Applicant’s right to property guaranteed by the provisions of Section 44 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and Article 14 of the African Charter of Human and Peoples Rights (Ratification and Enforcement) Act LFN 2010.

“An Order of this Honourable Court directing the Respondent to lift the restriction placed on the Applicant’s accounts with the aforementioned account numbers.

“An Order of perpetual injunction restraining the Respondent, whether by itself, its agents, privies, or servants, from unlawfully interfering with the Applicant’s accounts.”

Sowore is seeking N100 million as general damages for the unlawful freezing of his accounts, as well as the cost of prosecuting the suit.

He further said since 2019, his accounts have been rendered inoperable by the bank, with no formal explanation offered.

Despite several complaints, the Respondent has refused to lift the restrictions. A demand letter dated April 23, 2024, was also served on the Respondent, but to no avail.

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Banking Sector

Zenith Bank Enhances Customer Online Experience with Revamped Digital Channels

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Zenith Bank, one of Nigeria’s foremost financial institutions, has successfully restored full operational services across its electronic transaction channels, ensuring that customers can now enjoy seamless access to digital banking services.

This restoration follows temporary disruptions caused by a routine upgrade of the bank’s technology infrastructure, which aimed to optimize service delivery but impacted e-channel services recently.

In a post shared on Thursday through its social media platforms, the leading lender confirmed that all services across its electronic channels have been fully reinstated.

Reiterating its commitment to providing quality digital services, the bank assured customers of exceptional service with its newly enhanced technology infrastructure, designed to deliver seamless and innovative financial solutions.

The announcement stated:

“We are pleased to inform you that access to our digital channels has been restored, allowing you to perform transactions conveniently via your preferred platform. We appreciate your patience during the IT infrastructure upgrade and sincerely apologize for any inconveniences you experienced.

“Rest assured, we are dedicated to providing you with exceptional service, and the new IT infrastructure we have implemented will enable us to do so moving forward.

Thank you for choosing to bank with us.”

Important Reminder

Zenith Bank will NEVER call, SMS, or email you requesting your card details, PIN, token codes, mobile/internet banking login details, or any other account-related information.

“We will also NEVER ask you to click on a link to update your bank information or activate your account. If you receive such messages, please DO NOT respond,” the bank stated.

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