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Marginal Decline in the FAAC Monthly Payout – Coronation Merchant Bank

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FAAC

The latest gross monthly distribution for the Federation Account Allocation Committee (FAAC) to the three tiers of government and public agencies amounted to N714.6bn in April (from March revenue).

This was a decline of -1.1% or N8bn from the previous payout (N722.7bn recorded in February).

From thin coverage in the local media, we learnt that the take from companies’ income tax, electronic money transfer levy, import and excise duty, and oil and gas royalties recorded substantial increases over the previous month, while receipt from VAT was significantly lower.

The NNPC has made zero remittances to the federation account since 2022. The trend in total FAAC distributions has averaged of NGN710bn in 2018, NGN685bn in 2019, NGN636bn in 2020, N670.7bn in 2021 and N738.5bn in 2022.

In April, the FGN received a total of N276.1bn while state governments received N232.1bn. Oil producing states received an additional N35.1bn representing the 13% derivation for mineral revenue. The headline figure consisted of a N497.4bn gross statutory distribution, which is a 35% m/m increase from N366.8bn recorded in the previous month.

Furthermore, N202.6bn came into the VAT pool (vs N224.2bn recorded in the previous month), and N14.5bn from Electronic Money Transfer Levy (EMTL). The total deduction for cost of collection was N31.4bn.

We understand that the balance in the Excess Crude Oil Account (ECA) remained unchanged from the previous month at USD473.7m. This is relatively low compared to 2014 when it was as high as USD4.1bn. Underproduction in the oil sector and costly PMS subsidy payments continue to impact revenue accretion.

Recently, the World Bank re-affirmed its readiness to support the FGN in cushioning the impact of the expected PMS subsidy removal on Nigerians by providing an USD800m credit facility.

A small number of states, led by Lagos, can meet their obligations despite FAAC distribution levels because they collect substantial sums of internally generated revenue. However, the reliance of most states on FAAC payouts to implement their budget seems unsustainable amid the FGN’s dwindling revenue.

Therefore, pragmatic steps targeted at boosting internally generated revenue should be prioritized by the respective state governments by broadening the tax net and leveraging technology to boost revenue, among others.

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Banking Sector

Excitement as Zenith Beta Life Promo Returns With Season 3

Zenith Bank Plc has launched the third season of its hugely successful “Zenith Beta Life Promo” to reward its customers with gifts from June 1, 2023, to May 31, 2023. 

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Zenith Bank - Investors King

Zenith Bank Plc has launched the third season of its hugely successful “Zenith Beta Life Promo” to reward its customers with gifts from June 1, 2023, to May 31, 2023. 

Within this period, twenty bank customers of Zenith Bank will be chosen through a bimonthly raffle draw, each receiving gifts valued at NGN150,000. Five lucky customers will also win a cash prize of NGN500,000 during the quarterly draws.

The promo is open to both existing and new Zenith Bank customers, who can qualify with the following criteria:

* Open a Zenith Bank account and maintain a minimum deposit of NGN5,000 throughout the promotional period;

* Apply for and collect a Zenith Bank Card, which can either be virtual or physical; and

* Download and register on the Zenith Bank Mobile App, or sign up for *966# EazyBanking.

Commenting on the promo, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, said, “The Zenith Bank Beta Life Promo, now in its third season since it began in 2020, is our way of giving back to our customers and expressing our gratitude for their steadfast loyalty and support for the Zenith brand. It’s also a testament to our reputation as one of the most customer-centric financial institutions in the country, as this promo has allowed us to reward our customers throughout the federation with gifts over the past two seasons.”

During the Zenith Bank Beta Life Season 2 Promo, 480 customers of Zenith Bank received gifts worth NGN150,000 in the bimonthly draws. Furthermore, 20 customers received gifts valued at NGN500,000 each in the quarterly draws. Cumulatively, the gifts distributed during this season amounted to an impressive total of NGN82 million.

Zenith Bank continues to set itself apart within the Nigerian financial services sector through outstanding service offerings, unique customer experiences, and robust financial indicators. The bank remains a dominant player in the digital realm, consistently pioneering the deployment of innovative products, solutions, and a variety of alternative channels that ensure transactions are convenient, quick, and secure.

Among a plethora of awards, Zenith Bank was named Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards, Retail Bank of the year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards and Bank of the Decade (People’s Choice) at the ThisDay Awards 2020.

 

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Banking Sector

Fidelity Bank Announces 2nd Edition of Fidelity International Trade and Creative Connect (FITCC)

Building on the resounding success of the maiden edition of the Fidelity International Trade and Creative Connect (FITCC) in London, UK last November, leading financial institution, Fidelity Bank Plc, has announced plans to host the second edition of the trade expo in Houston, Texas in the United States of America.

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Fidelity Bank MD - Mrs Nneka Onyeali-Ikpe

Building on the resounding success of the maiden edition of the Fidelity International Trade and Creative Connect (FITCC) in London, UK last November, leading financial institution, Fidelity Bank Plc, has announced plans to host the second edition of the trade expo in Houston, Texas in the United States of America.

Tagged FITCC Houston, the event would hold on Wednesday, 18th and Thursday, 19th October 2023 at the George R. Brown Convention Center, 1001 Avenida de las Americas, Houston, Texas 77010.

Situating the critical role FITCC plays in the bank’s export trade strategy, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe stated that, “Fidelity Bank is very much invested in supporting export trade and has consistently demonstrated this by the interventions and innovations that we bring to the space. Beyond the instrument of financing, some of our key interventions in the space revolve around business management capacity development with initiatives like the Export Management Programme (EMP) which we host in partnership with the Lagos Business School and the Nigerian Export Promotion Council (NEPC) and market access development initiatives like FITCC.”

To promote Nigeria’s non-oil exports and facilitate integrations to global supply-chain networks, FITCC Houston will host leading businesses, entrepreneurs, investors and regulators operating in the commodity, service, creative, fashion and FinTech sectors in Nigeria and the United States. The participants would explore partnership, co-creation and foreign direct investments opportunities.

Participating businesses will benefit from curated market access engagements, investment and partnership opportunities, extended brand exposure before a global audience as well as speaking and networking opportunities amongst a long list of benefits in FITCC Houston.

Interested businesses and participants are encouraged to register for the conference at www.fidelitybank.ng/fitcc .

Fidelity Bank is a full-fledged customer commercial bank operating in Nigeria with over 8million customers serviced across its 250 business offices and digital banking channels. The bank was recognized as the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

 

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BUA Cement Secures $500 Million Financing for Expanding Cement Plants in Nigeria

BUA Cement Plc has successfully secured a financing package of $500 million to support the expansion of its cement plants.

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BUA Hq - Investors King

BUA Cement Plc, a leading cement manufacturer in Nigeria, has successfully secured a financing package of $500 million to support the expansion of its cement plants.

The financing was obtained from a syndicate of renowned development finance institutions, led by the International Finance Corporation (IFC), and includes participation from the African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – und Entwicklungsgesellschaft (DEG).

The expansion projects will focus on BUA Cement’s integrated cement plants located in Kalambaina, Sokoto State, Nigeria. According to the company, the financing will enable BUA Cement to increase the production capacity of these plants to 8.0 million metric tonnes per annum (MTPA) and develop additional auxiliary utilities to support the company’s operations.

This significant financial achievement follows BUA Cement’s disclosure to the Nigerian Exchange Limited (NGX), its esteemed shareholders, and the investing public on 25th July 2022, where the company expressed its intention to pursue expansion projects and raise up to $500 million in debt.

BUA Cement’s expansion projects are expected to have far-reaching effects, including job creation, promotion of local economic development, and infrastructure growth. The increased production capacity will meet the rising demand for cement in Nigeria, supporting various infrastructure projects and bolstering the country’s economic development.

The syndicate of development finance institutions backing the financing highlights the confidence placed in BUA Cement’s potential and its positive impact on the Nigerian economy.

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