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Rebound in FAAC Payout for July

The latest gross monthly distribution by the Federation Account Allocation Committee (FAAC) to the three tiers of government and public agencies amounted to N802.4bn in July (from June revenue).




The latest gross monthly distribution by the Federation Account Allocation Committee (FAAC) to the three tiers of government and public agencies amounted to N802.4bn in July (from June revenue).

This was an increase of 18% or N121.6bn from June’s payout and 14.7% higher than the payout recorded in January ’22. YTD, the average monthly FAAC distribution is N690.7bn. This is an improvement when compared with the average of N649.5bn and N642.1 recorded in the corresponding period of 2021 and 2020 respectively.

According to the local media, companies income tax (CIT), petroleum profit tax (PPT), oil and gas royalties and import duty recorded significant increases over the previous month, while value added tax (VAT)and excise duties declined.

From the FAAC payout in July, the FGN received a total of N321.9bn while state governments received N245.4bn, including N52.8bn representing the 13% derivation for the oil producing states. In addition, local government councils received N182.3bn.

The headline figure consisted of N608.6bn in gross statutory distribution. This was an increase of 58.1% when compared with the previous month and 20% when compared to the amount recorded in January ’22. Additionally, N193.8bn came in from the VAT Pool.

It was -2.4% lower than the amount recorded for June ’22 (N198.5bn), but 3.4% higher than the amount recorded in January ’22 (N187.4bn). In July, the total deductions for cost of collection was N44.6bn and the total deductions for statutory transfers, refunds and savings was N373.2bn.

The committee put the balance in the Excess Crude Account (ECA) at USD376,655. This is compared with USD61m recorded in July ’21.The drawdown can be attributed to an advance payment for the purchase of new offshore patrol vessels for the Nigerian Navy.

It is important to highlight that the Nigerian National Petroleum Company Limited (NNPC Ltd) has not made any remittance to the federation account in 2022. This is largely due to low oil production levels and high fuel subsidy costs. The NNPC has spent N1.5trn (USD3.5bn), on PMS subsidies in H1 ’22. The FGN estimates that N4trn would be spent on subsidy in 2022 compared with N1.5trn spent in 2021.

Going forward we expect the fiscal strain across states to remain unchanged. A few states, led by Lagos, generate substantial internal revenue, and can still meet their spending commitments, including capital items. However, for most states that depend solely on the monthly FAAC distribution, the prospects are bleak.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.


Discos Boost Revenue to N100bn in March Despite Power Supply Challenges



power project

Amid persistent complaints about low power generation, Nigeria’s electricity distribution companies (Discos) successfully increased their monthly revenue to N100 billion in March 2024.

This milestone comes despite the country experiencing significant power supply challenges due to ongoing gas shortages.

According to data released by the Nigerian Electricity Regulatory Commission (NERC), Discos’ revenue saw a steady rise from N95 billion in January to N97 billion in February,  and N100 billion in March.

This increase in revenue coincides with a period of reduced power supply, attributed to the gas supply crisis.

In January, Discos received 2,577 gigawatt-hours (GWh) of power and managed to bill 2,072 GWh, achieving an 80 percent billing efficiency.

The total billing for January was N130.9 billion, with N95 billion successfully collected, representing a 72 percent collection efficiency.

The allowed average tariff rate was N59.89k per kilowatt-hour (KWh), while the actual average collection was N36.97k/KWh.

February saw a decrease in the total energy received by Discos, dropping to 2,149 GWh. Of this, 1,759 GWh was billed, leading to N113 billion in billings and N97 billion in revenue collection.

In March, the energy received slightly increased to 2,468 GWh, with 1,975 GWh billed, resulting in N126.5 billion in billings and N100 billion in revenue.

The rise in revenue can be attributed to an increase in the tariff rates. NERC reported that the allowed average tariff for March was N62.73k/KWh, with the actual average collection at N40.69k/KWh. This tariff adjustment played a crucial role in bolstering Discos’ revenue.

Among the Discos, Ikeja Disco led the revenue generation with N20 billion in March, followed closely by Eko and Abuja Discos, each generating N16.7 billion.

Ibadan Disco contributed N10 billion, while Benin and Enugu Discos generated N7.5 billion and N6.9 billion, respectively.

The newly inaugurated Geometric Power, also known as Aba Power, recorded N1.1 billion in revenue, while Yola Disco earned N1.5 billion.

The total revenue generated by Discos in the first quarter of 2024 amounted to N292 billion. This period was marked by a nationwide blackout in January due to gas shortages, with power generation dropping from around 4,000 MW to below 2,500 MW at one point, severely impacting the Discos’ ability to supply electricity to consumers.

In response to the power supply crisis, the Discos issued apologies to their customers, citing their inability to distribute what was not available.

Despite the ongoing gas supply issues, NERC’s decision to remove electricity subsidies in Band A areas, raising the tariff to N206 per KWh, played a pivotal role in enhancing revenue.

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Banking Sector

Federal High Court Orders Forfeiture of $1.4M Linked to Ex-CBN Governor Emefiele



Godwin Emefiele

On Wednesday, the Federal High Court in Lagos ordered the interim forfeiture of $1,426,175.14 linked to the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.

Justice Ayokunle Faji issued the order following an ex parte application by the Economic and Financial Crimes Commission (EFCC).

The EFCC, represented by counsel Bilikisu Buhari-Bala, argued that the funds were reasonably suspected to be proceeds of unlawful activities connected to Emefiele, who is currently facing multiple criminal trials.

Justice Faji directed the EFCC to publish the interim forfeiture order in a national newspaper, thereby inviting any interested parties to appear before the court within 14 days to contest the forfeiture.

According to the EFCC’s investigator, David Jayeoba, credible intelligence led to the discovery of the funds in a bank account.

Jayeoba’s affidavit detailed how, between 2021 and 2022, directors of Donatone Limited—Uzeobo Anthony and Adebanjo Olurotimi—allegedly collected bribes on behalf of Emefiele to facilitate foreign exchange approvals during a period of forex scarcity.

“Payments totaling $26,552,000 were made to Donatone’s accounts, with significant transactions recorded on specific dates in 2021 and 2022,” Jayeoba revealed.

The funds were reportedly laundered through a foreign account in Mauritius before being returned to Nigeria. The balance in the account, currently $1,426,175.14, is now subject to forfeiture.

The EFCC’s application cited Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006, which empowers the court to order the forfeiture of funds suspected to be proceeds of crime.

The EFCC contended that the funds should be forfeited to the Federal Government as proceeds of unlawful activities.

Justice Faji’s order for interim forfeiture is part of a broader crackdown on financial misconduct linked to Emefiele.

Just days earlier, Justice Yelim Bogoro of the same Federal High Court ordered the interim forfeiture of $4.7 million, N830 million, and properties also linked to the former CBN governor.

Emefiele is currently facing several charges, including procurement fraud, unauthorized redesign of the naira notes, and forgery of the former President Muhammadu Buhari’s signature to allegedly divert funds from the CBN.

The court’s decision underscores the Nigerian government’s intensified efforts to combat corruption and financial crimes.

The EFCC’s success in securing these interim forfeiture orders highlights its commitment to holding high-profile individuals accountable and recovering illicitly obtained assets.

The case is scheduled for a final forfeiture hearing on June 25, where further arguments will be presented, and interested parties will have the opportunity to contest the interim forfeiture order.

The outcome of this hearing could set a precedent for similar cases involving financial misconduct by public officials.

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Banking Sector

Ebenezer Onyeagwu Caps a Stellar Tenure With Banking CEO of The Year in Africa in The International Banker Awards 2024 For The Second Consecutive Year



The Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, has been named the ‘Best Banking CEO of the Year in Africa’ at the International Banker 2024 Banking Awards, retaining this title for the second consecutive year.

This award, published in the Spring 2024 issue of International Banker Magazine, United Kingdom, coincides with Dr.

Onyeagwu’s completion of his five-year tenure as Group Managing Director/Chief Executive Officer on May 31, 2024.

Speaking on receiving the award, Dr. Onyeagwu expressed his gratitude to the publishers of International Banker for the honour.

He stated, “It is indeed an honour to be recognised as the ‘Best Banking CEO of the Year in Africa’ for a second consecutive year. This award is a testament to our team’s collective efforts and our commitment to innovation, growth, and delivering value to our customers and stakeholders. It also reflects our dedication to sustainability and high ethical standards, which are integral to our overall strategy. I am immensely proud of our accomplishments and look forward to future opportunities for the bank as I hand over the baton to my successor and begin the mandatory regulatory cooling-off period.”

Dr. Onyeagwu dedicated the award to the Founder and Chairman of Zenith Bank Plc, Dr. Jim Ovia, CFR, for his mentorship, which was crucial to his success as Group Managing Director/CEO; to the bank’s management team and staff for their unwavering commitment over the past five years; and to the bank’s customers for their loyalty.

Throughout his distinguished tenure, Dr. Onyeagwu has received multiple awards, including Bank CEO of the Year (2019, 2023) by Champion Newspaper, Bank CEO of the Year (2020–2023) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) – SERAS Awards, and CEO of the Year (2022) – Leadership Newspaper, and Banking CEO of the Year, Africa (2023) – International Banker.

Appointed as the Group Managing Director/Chief Executive Officer on June 1, 2019, as part of Zenith Bank’s succession planning strategy, Dr. Onyeagwu has led the bank to achieve significant milestones in financial performance, financial inclusion, corporate governance, and sustainability.

These achievements have earned the bank numerous local and international awards, including being named Best Bank in Nigeria for the fourth time in five years from 2020 to 2022 and in 2024 by the Global Finance World’s Best Banks Awards; Best Bank for Digital Solutions in Nigeria by the Euromoney Awards 2023; being listed in the World Finance Top 100 Global Companies in 2023; and being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine.

Zenith Bank has also been honoured as Best Commercial Bank in Nigeria for three consecutive years from 2021 to 2023 by the World Finance Banking Awards; Best Corporate Governance Bank in Nigeria by the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) by The Banker’s Bank of the Year Awards in 2020 and 2022; and Best in Corporate Governance Financial Services Africa for four successive years from 2020 to 2023 by Ethical Boardroom.

Other recognitions include Most Sustainable Bank in Nigeria at the International Banker 2023 Banking Awards, Best Commercial Bank in Nigeria, and Best Innovation in Retail Banking in Nigeria at the International Banker 2022 Banking Awards.

Additionally, Zenith Bank was named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank of the Year for three consecutive years from 2020 to 2022 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards; Bank of the Decade (People’s Choice) at the ThisDay Awards 2020; Bank of the Year 2021 by Champion Newspaper; Bank of the Year 2022 by New Telegraph Newspaper; and Most Responsible Organisation in Africa 2021 by SERAS.

In recognition of his significant contributions to the financial services sector in Nigeria and across Africa, Dr. Onyeagwu was awarded a Doctorate Degree in Business Administration by the University of Nigeria, Nsukka, on March 25, 2023, during the university’s 50th convocation ceremony.

Published by Finance Publishing Limited, the International Banker is a leading global source of authoritative analysis and opinion on banking, finance and world affairs. Its influence, integrity, accuracy and objective opinion have earned it global recognition.

The International Banker Awards strive to recognise the most worthy financial institutions around the world – those not just doing their jobs well but exceptionally well – those operating at the industry’s cutting edge and setting new performance levels to which others will aspire.

The 2024 Banking Awards focused on various criteria, including the provision of much-needed capital for economic growth, cutting-edge innovation to enhance security and efficiency, commitment to sustainability and ESG principles, as well as intelligent investing to maximise profits and shareholder value.

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