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RMAFC vows to Revisit Revenue Sharing Formula

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  • RMAFC vows to Revisit Revenue Sharing Formula

The newly reconstituted board of the Revenue Mobilisation Allocation and Fiscal Commission resumed work on Monday and vowed to revisit the nation’s revenue sharing formula.

Answering questions from journalists at the inaugural meeting of the 37 commissioners of the body in Abuja on Monday, Chairman of the commission, Mr Elias Mbam, declared that the review done by the commission in 2014 was not rejected but inconclusive.

Four years after the RMAFC work on a draft of a new revenue formula for the country, the draft had not been presented to the National Assembly by the Presidency as the procedure required.

Mbam said, “On a new revenue formula, it was not rejected; it was inconclusive. Our main mandate includes monitoring accruals to and from the federation account. It also includes a review of the revenue formula and determination of the appropriate remuneration of political office holders.

“We are not going to leave any of the items. We are going to address all these issues and that is why I say we are going to be more concerned about the sources of revenue.”

Both former President, Dr Goodluck Jonathan, and current President, Muhammadu Buhari, had frustrated efforts to complete the process required to give life to the draft document because they did not want the Federal Government to lose funds to the subnational governments.

Both Jonathan and Buhari had rebuffed attempts by officials of RMAFC to formally hand over the document to them.

Although the draft document, which is believed to have recommended a higher revenue share for the states, was part of the documents that were presented to Buhari on assumption of office by Ministries, Departments and Agencies, the Presidency had denied officials of RMAFC the opportunity to formally present the draft to the President.

It is the responsibility of the President to send the document to the National Assembly after securing the approval of the Federal Executive Council.

RMAFC, had in a statement on May 3, 2018, confirmed our correspondent’s report that Jonathan did not grant audience to the commission until he left office on May 29, 2015. It also confirmed that Buhari had been intimated of the draft document.

Buhari had failed to take the necessary follow-up actions as approval of the draft document would reduce what goes to the Federal Government from the federation account.

On what the body would do that a new document does not suffer the fate of the 2014 document, Mbam said it was the responsibility of all Nigerians to ensure that the work of the commission succeeded.

Promising that the commission would look into what political office holders earned, Mbam, however, failed to confirm whether the review would go upwards or downwards.

He added that any earning of political office holders outside the approved remuneration was outside the law.

He said, “Anything outside that Act is not known to this commission,” referring to the 2008 Political Office Holders Remuneration Act.

Mbam also promised to establish a committee on diversification and urged members of the commission to pay attention to national values even though they were appointed to represent their various states.

The RMAFC boss said, “I want to assure you that the commission as a family shall provide you with the opportunity to develop and contribute your quota to the socioeconomic development of our country.

“Our mandate as a commission is to uphold and promote national interest far above primordial interests. To this end, I implore all members to approach all issues pertaining to the mandate of the commission with an open mind and nationalistic fervour for the development of our country.”

Buhari inaugurated the rejuvenated commission last Thursday. Mbam had served his first tenure as chairman between 2011 and 2015. He was reappointed in July 2016 even though his name was not submitted to the National Assembly until recently.

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.

Finance

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue

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Lafarge Africa

Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020

Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.

In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.

Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.

Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.

On the outlook for the company going forward, the company said:

 Market demand is expected to remain strong in Q4.
 Naira devaluation and inflation remain a concern in Q4.
 The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
 We will maintain a healthy balance sheet.

Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.

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Despite COVID-19 Pension Assets Hit N11.4 Trillion

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Total Pension Assets Expand to N11.35 Trillion

The National Pension Commission has revealed that the total pension assets rose to N11.35 trillion as of the end of August 2020 despite the COVID-19 pandemic that disrupted businesses and economic productivity.

According to the latest figures from the National Pension Commission,  the commission assets expanded from N11.08 trillion in June 2020 to N11.3 trillion in July.

The report noted that 66.27 percent or N7.51 trillion of the funds had been invested in the Federal Government’s securities.

While some of the funds were also invested in domestic and foreign ordinary shares, corporate debt securities, local money market securities and mutual funds.

In the commission’s second quarter (Q2 2020) report, it said that following “the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by recovery agents, 16 of the affected employers remitted N261.33 million during the period.

“PenCom said this represents a principal contribution of N152.79 million and penalty of N108.54 million during Q2 2020.”

In the commission’s Q2 2020 report, it said “the pension fund administrators (PFAs) 2,839 contributors under the micro pension plan, remitted a total of N7.4 million to the RSAs as pension contributions.

Also in the same quarter, it said the PFAs recaptured 56,990 RSA holders and uploaded their data to the enhanced contributory registration system (ECRS).

PenCom further said the growth in the industry’s membership was driven by the RSA scheme, which had an increase of 41,147 contributors, representing 0.46 percent.

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