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FG Implements New Template for Operating Surplus

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  • FG Implements New Template for Operating Surplus

The Federal Government is set to inaugurate the use of a new template for calculating the operating surplus payable by government agencies and departments deemed as revenue generating organisations.

The Fiscal Responsibility Act, 2007 requires listed agencies to pay 80 per cent of their operating surpluses into the Consolidated Revenue Fund, while retaining 20 per cent.

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.

Thirty agencies were originally listed in the Act. However, the addition of 92 agencies by the Ministry of Finance in an effort to shore up the revenues accruing to the government had brought the number of organisations required to pay operating surpluses to 122.

Among the 92 new agencies now included in the list are the National Drug Law Enforcement Agency, Nigerian Investment Promotion Council, Nigerian Railway Corporation, Small and Medium Enterprise Development Agency of Nigeria and the Federal Radio Corporation of Nigeria.

Following a new thinking about how to calculate the operating surplus, the FRC had prepared a new template for determining what agencies should pay.

Although the new template has already been circulated to concerned agencies, our correspondent learnt that the inauguration of the template scheduled for the early days of August would mark the formal implementation of the template.

In the document titled ‘Operating Surplus Calculation Template’, the Federal Government claimed that the mopping up of unspent funds from the Ministries, Departments and Agencies at the end of a financial year by the Office of the Accountant-General of the Federation was not scientific and thus the need for the adoption of payment of operating surpluses by agencies.

The document stated, “The Federal Government has the statutory responsibility of setting up bodies to perform certain specialised functions for smooth running and growth of the economy. It has consequently invested resources and efforts to set up such entities.

“Akin to a private sector investor, the Federal Government expects to reap some level of reward out of the surplus made by these entities from their operations by way of independent revenue.

“Over time, the OAGF has been mopping all balances liquid funds at the end of each financial year. The practice is, however, not based on a scientific assessment of the surplus earned by the entities nor does it encourage them to retain a portion of that surplus.”

The new template on calculating operating surplus stipulate expenses, which agencies are not allowed to deduct before calculating what they are to pay into the Consolidated Revenue Fund as operating surpluses.

These are salaries in excess of scales approved by the National Salaries, Incomes and Wages Commission; monetisation of medical and other allowances; business class travel for officers other than chairman and chief executive officer; and personal loans to staff in excess of approved limits including unapproved mortgages.

Others are expenditure in excess of approved mandates; donations to individuals, including those to political and charitable organisations; and expenses in respect of conference meeting in excess of approved circular on frequency of meetings.

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.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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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.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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