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FG Recorded N889.61bn Deficit in Nine Months — CBN

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  • FG Recorded N889.61bn Deficit in Nine Months — CBN

Between January and September last year, the Federal Government recorded a fiscal deficit of N889.61bn in its operations, figures obtained from the Central Bank of Nigeria have revealed.

The 2018 budget which was signed by President Muhammadu Buhari had a total spending of N9.1tn made up of N2.87tn for capital expenditure, N3.51tn for recurrent (non-debt) expenditure while N2.01tn was projected to be spent on debt servicing.

The N9.1tn budget was expected to be financed from N2.99tn to be generated from oil revenue, N31.25bn from Nigeria Liquified Natural Gas dividend while N1.17bn was expected to be realised through revenue from minerals and mining.

To fund the budget, the Federal Government had planned to generate N658.55bn from Companies Income Tax, N207.51bn from Value Added Tax, N324.86bn from Customs while N57.87bn was expected to come from federation account levies.

In the same vein, the government was expected to raise N847.95bn through independent revenue from its agencies, while tax amnesty income, signature bonus and unspent balance from previous years was to provide N87.84bn, N114.3bn and N250bn respectively

Details of the fiscal operations of the Federal Government which were obtained from the economic report of the CBN showed that in the first quarter of 2018, the government recorded about N902.64bn in revenue while its expenditure was put at N1.59tn.

This resulted into a deficit of N697.1bn for that quarter.

In the second quarter of 2018, the revenue of the Federal Government was put at N896.74bn with expenditure of N988.91bn, resulting into a deficit of N92.17bn.

For the third quarter, the report stated that the government recorded revenue of N950.61bn while it incurred total expenditure of N1.05tn.

Based on the inability of government’s revenue to meet up with its expenditure, the fiscal deficit was put at N100.33bn.

The report read in part, “Federal Government retained revenue for the third quarter of 2018 was estimated at N950.61bn.

“This was below the proportionate quarterly budget estimate by 49.7 per cent, but exceeded receipts in the review quarter by six per cent.

“Of the total revenue, Federation Account accounted for 86.7 per cent, while Federal Government Independent Revenue, VAT,

Exchange Gain, NNPC Refund and Excess Non-oil accounted for 4.8, 4.2, 3.2, 0.6 and 0.5 per cent, respectively.

“The estimated Federal Government expenditure for the third quarter of 2018 stood at N1.05tn and was below the proportionate quarterly budget estimate of N2.37tn by 55.8 per cent.

“It was, however, above the level in the preceding quarter by 6.3 per cent.

“A breakdown of the total expenditure showed that the recurrent component accounted for 82.4 per cent, while capital and statutory transfers accounted for 12.5 and 5.1 per cent, respectively.

“A further breakdown of the recurrent expenditure showed that the non-debt component accounted for 40.9 per cent, while debt service payment was 59.1 per cent.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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