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FAAC Disbursed N1.94tn to FG, States, LGAs in Q1

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Federation Account Allocation Committee
  • FAAC Disbursed N1.94tn to FG, States, LGAs in Q1

The Federation Account Allocation Committee disbursed N1.938tn to the three tiers of government in the first quarter of this year.

The shared sum represented an increase of 37.3 per cent when compared with the N1.411tn that was shared during the same period in 2017, and 71.1 per cent of the N1.132tn shared in the same quarter of 2016.

The FAAC allocations showed that the Federal Government received N812.8bn; the 36 states got N683.4bn; while N393.3bn went to the 774 Local Government Areas.

A further breakdown showed that N655.2bn was disbursed by FAAC in January, N635.6bn in February, and N647.4bn in March this year.

The information is contained in the latest edition of the Quarterly Review by the Nigeria Extractive Industries Transparency Initiative.

The publication observed that even with increasing trends in the revenue disbursement to the three tiers of government, the amount shared in the first quarter of 2018 was still 25.6 per cent lower than the N2.6tn disbursed during the same period in 2013, before the crash in global oil prices.

The report projected brighter prospects of higher revenue disbursements for the rest of the year, because of the rising oil prices, which currently hover around $70 per barrel, in addition to the increase in crude oil production.

It, however, called for caution while celebrating the amounts disbursed in the first quarter of 2018 because of the volatility of the international oil market.

“The year started on a bright note as all tiers of government received higher revenues than corresponding quarters in the past two years. This was largely on the account of sustained increase in domestic oil production and global oil prices,” the NEITI report stated.

On allocations received by each state, the report revealed that Akwa Ibom got the highest amount of N50.44bn, while Osun State received the lowest net share of N4.99bn, a variance of 920 per cent between the highest and the lowest.

It explained that the disparities in FAAC disbursements suggested differences in revenue capacities of different states and the implications for expenditure decisions in the affected states.

The publication expressed concerns about the relationship between the projected revenues of states and their proposed budgets.

“The budget of all states completely outstrips their projected total revenues,” the report stated.

For instance, the publication observed that the gap between projected total revenues and budgets was small in some states like Kano, Enugu, Delta and Bayelsa.

In these states, projected revenues were at least 60 per cent of the budgets.

However, in about 18 states, projected revenues were less than 40 per cent of budgets.

NEITI stated that examples could be seen in the 2018 budgets of Adamawa, Akwa Ibom, Anambra, Bauchi, Benue, Borno, Cross River and Ebonyi states.

Other states include Imo, Katsina, Kebbi, Kwara, Ogun, Osun, Oyo, Plateau, Sokoto and Zamfara.

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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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DSS Arrests EFCC, Acting Chairman, Magu

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Dss Arrests Ibrahim Magu

DSS Arrested Magu, the Acting Chairman of EFCC

The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.

The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.

The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.

But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.

This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.

The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.

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Again CBN Debits Banks N118 Billion for Failing to Meet CRR Target

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CBN Debits Deposit Money Banks N118bn for Not Meeting CRR Target

The Central Bank of Nigeria (CBN) on Friday debited the nation’s deposit money banks a total sum of N118 billion for failing to meet 27.5 percent Cash Reserve Ratio (CRR) target.

This is the fourth of such action, bringing the total amount debited so far this year to N2.2 trillion.

According to Tunde Abidoye, an analyst at Lagos-based FBN Quest, the move brings “further downward pressure on banks liquidity ratios and earnings.”

“Based on the total sum that each bank has been debited this year, and our NIM assumptions for each bank, we estimate an aggregate opportunity cost of funds of N86bn for our universe of banks coverage,” Abidoye stated in a note to clients.

The central bank continues to debit banks to force them to loan more into the real sector and also reduce their forex purchasing power to better manage the nation’s weak foreign reserves and curb capital outflow. A series of recent reports have pointed to a possible foreign exchange devaluation to ease pressure on the nation’s reserves.

The report shows that the Stanbic IBTC and Guaranty Trust Bank were debited N15 billion each.

Details later…

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Debt Market: Dangote Cement Raises N250 Billion in H1, 2020

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Prime Real Estate Development At Eko Atlantic City

Dangote Cement Raises N250 Billion From Debt Market in H1 2020

Dangote Cement raised a total sum of N250 billion from the nation’s debt market in the first half of the year, according to the FMDQ Securities Exchange Limited.

In the statement published on the FMDQ website, the N250 billion debt includes the N100 billion Series 1 Bond raised under Dangote Cement’s N300 billion Bond Programme and the N150 billion Commercial Paper (Series 13-16 Domestic CP Issuance Programme) offered earlier in the year and now listed and quoted on FMDQ Securities.

Mr Michel Puchercos, the Chief Executive Officer, Dangote Cement, was quoted as saying, “This landmark transaction is the largest-ever bond issuance by a corporate issuer in Nigeria.

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”

Mr Kobby Bentsi-Enchill, the Executive Director and Head of Debt Capital Markets, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and are delighted to have advised on this landmark corporate bond issuance, which reflects the depth and diversity of the Nigerian debt capital markets.”

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