Connect with us

Economy

Operating Surplus: MDAs Remit N1.42tn in 10 Years

Published

on

Hajiya Zainab Ahmed
  • Operating Surplus: MDAs Remit N1.42tn in 10 Years

A total of 122 Ministries, Departments and Agencies remitted N1.42tn to the Consolidated Revenue Fund in 10 years, data obtained from the Fiscal Responsibility Commission have shown.

The Federal Government requires agencies listed in the Fiscal Responsibility Act 2007 to pay 80 per cent of their operating surpluses into the CRF after their accounts must have been audited.

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.

While some agencies had regularly complied with the requirement of the law, there are others that the Fiscal Responsibility Commission battles on a regular basis to extract the remittances or pledges for compliance with the law.

Many agencies have never paid operating surplus from the document obtained by our correspondent. This category of agencies includes the Nigerian National Petroleum Corporation, the Nigeria Customs Service, the Nigerian Electricity Regulatory Commission, the National Space Research Development Agency and the Nigeria Content Development and Monitoring Board.

Others that had never paid operating surplus include the Nigerian Communications Satellite Limited, the Nigerian Atomic Energy Commission, the Department of Petroleum Resources, Energy Commission of Nigeria, the Federal Housing Authority and the Bank of Industry.

Agencies leading in the level of remittances to the CRF include the Central Bank of Nigeria which had remitted N864.35bn; the Nigerian Communications Commission, N131.74bn; the Nigerian Ports Authority, N121.8bn; and the Nigerian Deposit Insurance Corporation, N101.09bn.

Others are the National Maritime Administrative and Safety Agency, N52.98bn; the Bureau of Public Enterprises, N27.52bn; Federal Inland Revenue Service, N24.24bn and the Nigerian Civil Aviation Authority, N11.88bn.

Thirty agencies were originally listed in the FRC Act. However, the Federal Government in order to shore up its revenue added 92 agencies in 2017 and that brought the number of government organisations required to pay operating surpluses to 122.

The 92 agencies that were added to the list include the Nigeria Drug Law Enforcement Agency, the Nigerian Investment Promotion Council, the Nigerian Railway Corporation, Small and Medium Enterprise Development Agency of Nigeria and FRCN.

The Federal Government set a target of N866bn to be realised from the 122 agencies in 2018. It is not certain how far the target was realised but the analysis of the data obtained from the FRC showed that N141.61bn was realised from the agencies in 2017.

The performance was better in 2016 when a total of N253.61bn was realised from the agencies through the payment of operating surpluses. An even better result was obtained in 2015 as a total of N323.56bn was realised.

The FRC believes that if the list of agencies required to pay operating surpluses is expanded and if the agencies will be faithful in remitting their obligations to the Consolidated Revenue Fund, the Federal Government will not need to borrow again.

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.

Continue Reading
Advertisement
Comments

Economy

Nigeria, Morocco sign MOUs on Hydrocarbons, Others

Published

on

moroccan-king-mohammed

The Federal Government and the Kingdom of Morocco have signed five strategic Memoranda of Understanding that will foster Nigerian-Morocco bilateral collaboration and promote the development of hydrocarbons, agriculture, and commerce in both countries.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, led the Nigerian delegation to the agreement signing ceremony on Tuesday at Marrakech, Morocco, while the Chief Executive Officer of OCP Africa, Mr Anouar Jamali, signed for the Kingdom of Morocco, according to a statement by the Nigerian Content Development and Monitoring Board.

Under the agreement between OCP, NSIA and the Nigerian National Petroleum Corporation, Nigeria will import phosphate from the Kingdom of Morocco and use it to produce blended fertiliser for the local market and export.

The statement said Nigeria would also produce ammonia and export to Morocco.

“As part of the project, the Nigerian Government plans to establish an ammonia plant at Akwa Ibom State,” it said.

The Executive Secretary of NCDMB, Mr Simbi Wabote, and the Group Managing Director of NNPC, Mallam Mele Kyari, were part of the delegation and they confirmed that their organisations would take equity in the ammonia plant when the Final Investment Decision would be taken, the statement said.

Sylva said the project would broaden economic opportunities for the two nations and improve the wellbeing of the people.

He added that the project would also positively impact agriculture, stimulate the growth of gas-based industries and lead to massive job creation.

He said the President, Major General Muhammadu Buhari (retd.), had mandated the Ministry of Petroleum Resources and it agencies and other government agencies to give maximum support for the project.

“He mandated me to ensure that at least the first phase of this project is commissioned before the expiration of his second term in office in 2023,” he added.

According to the statement, the MOUs were for the support of the second phase of the Presidential Fertiliser Initiative; Shareholders Agreement for the creation of the joint venture company to develop the multipurpose industrial platform and MOU for equity investment by the NNPC in the joint venture and support of the gas.

Other agreements are term sheet for gas sales and aggregation agreement and MOU for land acquisition and administrative facilitation to the establishment of the multipurpose industrial platform for gas sales and aggregation agreement.

The NCDMB boss described the bilateral agreement as significant to the Nigerian economy as it would accelerate Nigeria’s gas monetisation programme through establishment of the ammonia plant in the country.

The agreement would also improve Nigeria’s per capita fertiliser application through importation of phosphate derivatives from Morocco, he added.

Wabote challenged the relevant parties to focus on accelerating the FID, assuring them that the NCDMB would take equity investment for long-term sustainability of the project.

He canvassed for the setting up of a project management oversight structure to ensure project requirements and timelines are met.

“There is also need to determine manpower needs for construction and operations phase of the project and develop training programmes that will create the workforce pool from Nigeria and Morocco and design collaboration framework between research centres in Nigeria and Morocco to develop technology solutions for maintaining the ISBL and OSBL units of the Ammonia complex,” he said.

Continue Reading

Economy

Dangote Fertiliser Plant to Commence Shipment of Urea in March 2021

Published

on

Dangote to Sells Petrol in Naira, Plans to Commence Urea Shipment in March 2021

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said Dangote Fertiliser Plant will commence shipment of Urea in March 2021.

The CBN governor disclosed this during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline at Ibeju Lekki, Lagos on Saturday.

Emefiele further stated that Dangote Refinery would sell refined petroleum products in Naira when it starts production.

This he said would save the country from spending 41 percent of the nation’s foreign exchange on importation of petroleum products yearly.

Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira,” Mr Emefiele said.

That is the element where foreign exchange is saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.

Emefiele explained that this will make the price of Nigeria’s petroleum products affordable and cheaper in naira.

If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.

“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Mr Emefiele said.

Continue Reading

Economy

UK Budget 2021: Will Sunak’s Budget Run Into Unintended Consequences?

Published

on

UK EConomy contracts

Rishi Sunak’s Budget will encourage higher earners to consider their “international financial options” and will drive businesses away from the UK, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as the Chancellor delivered his 2021 Budget in the House of Commons, his second since he took on the role.

Mr Green says: “The Chancellor has got an extraordinarily difficult hand to play as he tries to stem the economic damage caused by the pandemic, support jobs and businesses and, crucially, rebuild the public finances.

“Whilst Mr Sunak is being hailed a hero for the continued and unprecedented levels of support, it should also be remembered that he is – in a stealth move – dragging more people firmly into the tax net.

“He is raising taxes under the radar.

“Yes, there is no income tax rise. However, he is freezing personal tax thresholds, meaning as incomes rise and thresholds don’t, he is able to raise money by fiscal drag.”

Earlier this week, the deVere CEO noted: “Those most impacted by this stealth move will be looking at the financial planning options available to them, including international options, in order to grow and protect their wealth.”

Rishi Sunak also confirmed that corporation tax will increase to 25% from 2023, up from the current level of 19%.

Of this tax hike, Mr Green goes on to say: “Lower corporation tax helps job and wealth-creating business to survive and thrive. It also helps attract business to move and invest in the country.

“Instead of increasing taxes, Mr Sunak should have relentlessly focussed on growth and stimulus policies for businesses.  This would have been of greater help to firms, the economy, jobs and, ultimately, the Treasury’s coffers.”

He adds: “Again, this corporation tax hike is likely to serve as a prompt for businesses to consider their overseas financial options.”

The deVere CEO concludes: “The Chancellor had to perform a tough juggling act.  But stealthily dragging more people into the tax net and raising corporation tax might have negative, unintended consequences for the Treasury’s bottom line.”

Continue Reading

Trending