The gross monthly distribution by the Federation Account Allocation Committee (FAAC) to the three tiers of government and public agencies amounted to N671.9bn (USD1.62bn) in November (from October revenue). This shows a decrease of -9.2% or N68bn from the previous payout. Based on data in the local media, we learnt that companies’ income tax (CIT), petroleum profit tax (PPT), value added tax (VAT), oil and gas royalties recorded decreases while excise duty recorded an increase over the previous month.
The FGN received a total of N284.3bn, state governments received N209.8bn, including N21.5bn representing the 13% derivation for the few oil producing states and LGCs received N156.3bn.
The headline figure consists of N363.8bn in gross statutory distribution, N154.8bn from the VAT Pool, and N3.2bn of exchange gain. Based on the communique, N11.5bn was allocated to a combination of collection costs, transfers and unspecified refunds. The committee disclosed that the balance in the Excess Crude Account (ECA) is USD60.8m.
According to the Nigerian National Petroleum Commission (NNPC), it has in recent months made deductions from its contributions to the federation. We note that since June ’21, the corporation deducted a total of N939bn from its FAAC remittance. It disclosed that it would deduct its October ‘21 value shortfall of N199bn from its November ‘21 proceeds.
According to the NNPC group managing director, the subsidy regime would be halted in Q1 ‘22. To ease the impact of the fuel subsidy removal, the FGN plans to disburse N5,000 each to 40 million poor Nigerians monthly. (i.e. N200bn per month).
In 2017 the FGN provided a USD2.1bn Budget Support Facility to state governments to cushion the impact of dwindling resources. We gather that deductions for this loan repayment kickedoff in July ’21. To enable state governments to meet their respective financial obligations, the FGN has now approved N656bn Bridge Financing Facility. We understand that each state is expected to receive N18.2bn with a 30-year tenor, and a 2-year moratorium at an interest rate of 9%.
Loan Default: AMCON Takes Over IBEDC
Further to the judgment of the Federal High Court on the 8th of September 2021, the Asset Management Corporation of Nigeria (AMCON) has announced its takeover of the Ibadan Electricity Distribution Company (IBEDC).
This is following the electricity distribution company’s default in a loan servicing agreement executed with Polaris Bank.
“AMCON has been appointed receiver/manager over all the Assets of Integrated Energy Distribution and Marketing Limited as stipulated in the instruments executed in favour of AMCON by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties”, a statement from AMCON reads.
AMCON further revealed that it has appointed Osayaba Giwa-Osagie to take over the entire undertakings on the IBEDC, including the assets, shares and interests in related companies and entities, and also monies kept in any of the 25 banks in Nigeria.
Investors King gathered that AMCON’s takeover might also not be unconnected to some crisis inside the power company, a development which has reportedly affected its service delivery to customers.
IBEDC’s Chief Operating Officer (COO), Engineer John Ayodele however allayed the fears of the IBEDC staff.
“I hereby wish to inform all staff that there is no cause for alarm. We are assured of job security which entails our position/duties in the company, being entitlements to our salaries and other benefits etc.”, he said.
Investors King recalls that the IBEDC, during a stakeholders’ meeting in May 2021 had disclosed that it secured N4.2billion from the Central Bank of Nigeria (CBN) to improve power supply to its numerous customers in Ogun State.
According to Ayodele, the facility would be channelled into building lines to improve power/electricity supply to the communities. He had also revealed that 80 percent of the money collected by IBEDC goes for other services, adding that the company has lost over N3billion in estimated billing.
Lawmakers Consider Capital Market Bill, Propose Ten-Year Jail Term For Ponzi Scheme Operators
Some Nigerians would still cringe at the mere mention of ‘Investment’. This is due to their exposure to the dubious schemes of fake investment platforms and Ponzi schemes.
Hence, as part of efforts in curbing this, a bill seeking the prohibition of Ponzi and Pyramid schemes has passed the second reading at the house of representatives. The bill also proposes a 10-year prison sentence for operators of the Ponzi and pyramid schemes.
The bill, which was sponsored by the Chairman, house committee on capital markets, Ibrahim Babangida, also seeks to repeal and re-enact the Nigerian Capital Market, Investments and Securities Act.
It is titled, ‘A Bill for an Act to Repeal the Investments and Securities Act, 2007 and Enact the Investments and Securities Bill to Establish Securities and Exchange Commission as the Apex Regulatory Authority for the Nigerian Capital Market as well as Regulation of the Market to Ensure Capital Formation, the Protection of the Market to Ensure Capital Formation, the Protection of Investors, Maintain Fair, Efficient and Transparent Market and Reduction of Systematic Risk; and for Related Matters.’
A Ponzi scheme is an investment fraud that pays existing investors with the money collected from new investors. The scheme generally leads victims to believe that their earnings are from genuine business investments, and therefore, can be sustained.
Regarded as one of the world’s largest Ponzi schemes of all time, the Mavrodi Mundial Moneybox (MMM) is a Russian-founded Ponzi scheme which left some Nigerians in despair at their lost “investments” after the company suddenly went into ‘extinction’ in 2017.
After MMM, a lot of other fake investment platforms have emerged and are still emerging, ripping Nigerians off their monies.
The bill, when passed into law, will enable SEC to properly regulate the capital market, ensure capital formation, protect the market to ensure capital formation, protect investors, maintain a fair, efficient and transparent market and reduce systematic risks.
According to Babangida, current trends in capital markets regulation have made it necessary to make major improvements to the Nigerian capital market, the Investments and Securities Act, Act No. 29 of 2007, which was initially signed into law by the late President Umar Musa Yar’adua in June 2007.
Parallex Bank Debuts As Newest Commercial Bank In Nigeria
Parallex Bank, a licenced Microfinance Bank, has successfully transited to a commercial bank after 14 years of operations.
According to the bank’s chairman, Dr. Adeola Phillips, the bank is delving into the commercial banking space, to drive consumer-centric innovation that will propel the banking industry to greater heights.
The bank’s Managing Director, Mr. Olufemi Bakre, who spoke during the launch of the bank’s commercial operations, affirmed that the bank’s promise to its customers is to be an enabler of limitless banking. According to him, the vision of the bank is to be the preferred financial solution provider redefining customer experience through innovation.
The bank revealed its plan to disrupt the market and delight customers with very attractive offers. It noted that most transactions on Parallex mobile app are free but beyond that, customers will have the freedom to do much more with the app.
Parallex bank converted from Parallex Microfinance Bank (a National Microfinance Bank incorporated in 2008 as a Unit MFB) to a commercial bank duly licensed by the Central Bank of Nigeria to carry out commercial banking services. This is a first-of-its-kind achievement in the Nigerian banking space.
The bank noted that it is “poised to be the preferred financial solutions provider redefining customer experience through digital innovations.
“This we will achieve by leveraging the best talents and technology to deliver unparalleled value to our stakeholders. With a strong ecosystem anchored around the customer, we offer a superior product portfolio that is customer-focused and innovative, yet simple”.
With a vision to leverage the best talent and technology to deliver unparalleled value to all its stakeholders, the bank noted that it is open to working with various stake holders to amplify its impact and capability.
Technology4 weeks ago
World Mobile, Altaeros Partner to Launch Aerostat Balloons to Connect the Unconnected in Africa
News3 weeks ago
Npower Payment: NASIMS Commence Npower Batch C October Payment, Removes November Payroll Status
Cryptocurrency4 weeks ago
Shiba Inu Burn Update: 351.1 Million Shiba Inu Coin Destroyed In 24 Hours
News2 weeks ago
Npower Payment: Network Instability Affected 3-Month Payment to Trainees – NASIMS
Banking Sector4 weeks ago
Stanbic IBTC Bank Records LDR of 69%
Cryptocurrency2 weeks ago
Non-fungible Tokens: Sales of NFTs Hit $25 Billion in 2021
Banking Sector4 weeks ago
FirstBank Decemberissavybe: Top 11 Events to Rock Your December
Cryptocurrency4 weeks ago
Fintech CEO: Regulators Finally See Urgency in Commonsense Rulebook for Crypto