The Nation Newspaper

Tag: six months

  • ‘FAAC disburses N3.946tr in six months’

    The Federation Accounts Allocation Committee (FAAC) has disbursed N3.946 trillion in the first half of 2018 to federal, state and local governments, the Nigeria Extractive Industries Transparency Initiative (NEITI) quarterly report has revealed.

    The report released in Abuja yesterday, noted that the amount rose by 41.4 per cent compared to N2.788 trillion disbursed in the first half of 2017 and 95.4 per cent higher than the N2.019 trillion disbursed in the first half of 2016.

    It said Delta State received the highest allocation of N101.19 billion in the six-month, followed by Akwa Ibom with N100.2 billion; Rivers State with N85.01 billion, while Bayelsa received N77.14 billion.

    According to the report, the four states received N364.26 billion in the quarter under review.

    “Thus, the disbursements in the first half of 2018 were almost double the disbursements in the first half of 2016.

    “The breakdown of the data reveals that in the first half of 2018, the Federal Government received N1.652 trillion, which made up 41.8 per cent of the total amount disbursed.

    Read also: FAAC disbursed N6.418tr in 2017

    “The states got N1.375 trillion, representing 34.8 per cent of the total; while N795 billion was disbursed to the local government areas (LGAs), representing 20.1 per cent of the total,” it said

    The report further noted that following the top four states to make the top 10 category in the report was Lagos State that received N59.52 billion, Kano N39.88 billion, Edo N32.88 billion, Kaduna N32.86, Ondo N30.96 billion and Borno N30.04 billion.

    On the other hand, the report revealed that the 10 states with the least federation allocation received a total of N189.45 billion, about six per cent less than the N201.39 billion total allocation received by Delta and Akwa Ibom states.

    Osun State received the least allocation in the six-month period with N10.24 billion, while Cross River, Ekiti, Zamfara and Ogun states received N17.13 billion, N17.92 billion, N18.64 billion and N18.79 billion.

    Others include Plateau, Gombe, Kwara, Ebonyi and Taraba, with allocation of N20.6 billion, N20.64 billion, N21.39 billion, N21.61 billion and N22.49 billion.

    Continuing, the report noted: “In the first quarter of 2013, total disbursements were N2.607 trillion. This figure for first quarter of 2013 was the highest over this period, while the N886.4 billion disbursed in second quarter 2016 was the lowest.

    “This indicates a difference of N1.721 trillion between disbursements in the highest and lowest months.

    “This figure is very large and further highlights the volatility in revenue for the federation, arising from the dependence on oil.

  • CBN lends banks N27.6tr in six months

    Banks borrowed N27.46 trillion from the Central Bank of Nigeria (CBN) in six months, according to the apex bank’s half year report on financial sector performances released yesterday.

    The 2017 half-year Financial Markets Activity Report, said loans came in the form of Standing Lending Facility (SLF), including the Intra-day Lending Facilities (ILF). The standing facilities were accessed by the banks to enable them either meet their short-term liquidity needs or place their surpluses. The rates for SDF and SLF remained at nine and 16 per cent, respectively.

    The report said the SLF was utilised by the banks in order to enable them square up their positions after inter-bank market trading hours. It said of the total SLF granted in the review period, N20.62 trillion was conversion from unsettled ILF.

    The SLF is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value. Funds were sourced mainly from time, savings and foreign currency deposits, as well as accretion to unclassified assets. The funds were used, largely, to extend credit to the private sector and payment of claims on demand deposit.

    According to the report, signed by CBN Director, Financial Markets Department, Alvan Ikoku, said the banks continued to access the CBN’s Standing Facilities window to square up their positions either by borrowing from the SLF window or depositing excess reserves at the standing deposit facility (SDF) window of the CBN at the end of each business day.

    The report said the SLF was utilised by the banks in order to enable them square up their positions after inter-bank market trading hours. It said the patronage of the facility reflected the liquidity position during the first half of the year, as requests were at its lowest on January 2, 2017 with N83.61 billion and at its highest on April 18, 2017 with N478.54 billion.

    “In view of the 122 transaction days within the period, average daily request amounted to N225.14 billion. Consequently, the cumulative interest received on the facilities was N21.13 billion at 16.00 per cent. In comparison with the corresponding period of the previous year, total SLF transactions amounted to N5.07 trillion, out of which N4.87 trillion was conversion from ILF.

    It said the average daily request stood at N59.76 billion, while the cumulative interest received on the facilities was N2.92 billion at the applicable rates of 13.00 and 14.00 per cent. The higher level of transactions over the corresponding period in 2016 was occasioned by the tight monetary operations in 2017.

    The CBN report said patronage of the SDF reflected the liquidity unease in the system as less funds were deposited compared with the corresponding period of the preceding year.

    “The reduced patronage was due to tighter monetary operations through increased Open Market Operation (OMO) auctions. The foreign exchange interventions, in addition, moderated the cash balances in the banking system. The restriction of N7.50 billion maximum remunerable SDF per bank remained applicable.

    The total request for SDF in the review period was N5.1 trillion, indicating a daily average volume of N45.54 billion as against a total SDF of N12.69 trillion and daily average of N102.42 billion in the corresponding period of 2016.

    Further analysis of the transactions indicated that the highest amount of SDF was N121.50 billion on February 2, while the lowest was N0.30 billion on March 20.

    Consequently, the interest paid on SDF amounted to N1.99 billion at the rate of 9.00 per cent in the first half of 2017, as against N2.84 billion at 4.00 per cent from January 1 to March 21 and 7.00 per cent from March 22 to June 30, 2016.

    It said the total value of transactions in the funds market stood at N864.93 billion in the first half of 2017, as against N513.11 billion in the corresponding period of 2016. The high level of activity in the review period was attributable to liquidity squeeze occasioned by tight monetary operations.

    Further analysis of the transactions indicated that open-buy-back (OBB) accounted for 89.42 per cent at N773.42 billion, while the unsecured recorded 10.58 per cent at N91.51 billion.

    In the preceding year, OBB accounted for less at N203.54 billion or 39.67 per cent compared to the unsecured segment which recorded N309.57 billion or 60.33 per cent. The shift in patronage in favour of OBB in the review period was attributable largely to greater risk aversion by market participants.

  • Man jailed six months for trespass

    A Karmo Grade 1 Area Court in Abuja has sentenced Stanley Chibike to six months’ imprisonment for criminal trespass and attempt to commit theft.

    Chibike, who lives at Jabi, Abuja, pleaded guilty.

    He, however, appealed to the court to temper justice with mercy and promised to be of good behaviour.

    Convicting the accused, the judge, Alhaji Abubakar Sadi, handed six-month jail term to him, but with an option to pay fine of N10, 000.

    He said the sentence would act as a deterrent to others.

    The prosecutor, Mr. Zannan Dalhatu, had told the court that Abdullahi Usman of Utako, Abuja, reported the matter at Utako Police Station on March 17.

    He said on the same date, the convict formed criminal intention, trespassed into a compound and attempted opening the complainant’s door, but was caught by the security guard.

    Dalhatu said during police investigation, the convict confessed to the crime.

    He told the court that the offences contravened sections 348 and 95 of the Penal Code.

     

     

  • Man gets six months for hacking into account

    A Kubwa Grade 1 Area Court yesterday sentenced a 28-year-old man, Ibe Chitoo, to six months’ imprisonment for hacking into the bank account of Ifeoma Nwobu and withdrawing N455, 000.

    Chitoo of Jalingo, Taraba State was convicted and sentenced for theft and cheating.

    The judge, Mohammed Marafa, however, gave the convict an option of N20, 000 fine ýand ordered him to pay N455, 000 as compensation to Nwobu.

    He said if Chitoo failed to pay the money, he would serve him additional three months in prison.

    The prosecutor, Babajide Olanipekun, had told the court that the complainant, Nwobu, reported the matter at Kubwa Police Station on November 24, 2017.

    He said Chitoo stole the complainant’s MTN SIM card, hacked into her First Bank account and fraudulently transferred N455, 000 from the complainant’s account sometime in 2016.

    The prosecutor said Chitto transferred the sum to various accounts without the complainant’s consent and converted same to his personal use.

    The offence contravenes sections 287 and 322 of the Penal Code.

    Counsel to the defendant, Moses Ugwummadu, however, prayed the court to temper justice with mercy, saying Chitto was a first time offender.

     

  • Navy arrests 20 vessels in six months, says CNS

    Navy arrests 20 vessels in six months, says CNS

    …..Destroy several illegal refineries, others

    The Nigerian Navy (NN) yesterday said it has arrested 20 vessels and destroyed 149 illegal refineries across the country since July.

    Chief of the Naval Staff (CNS), Vice Admiral Ibok-Ete Ibas, disclosed this at the opening ceremony of the annual sea inspection codenamed Exercise Treasure Guard held at the Onne Port in Port Harcourt, Rivers State.

    Ibas also stated that a total of 149 illegal refineries, 19 barges, 75 large wooden boats and 93 auxiliary equipments were destroyed during the same period.

    He noted that the force’ sustained drive to curb criminality at sea was in line with his emphasis on zero tolerance for illegalities within the maritime environment.

    Ibas, who listed the major achievements of the NN this year, noted that there has been an aggressive sea patrols with at least five capital vessels patrolling the waterways on a daily basis, with at least 65 boats of various sizes patrolling numerous rivers and creeks.

    “In the reviewed period, the NN has also been more aggressive in her patrol. She had thus been deploying at least five ships on a daily basis to sea to carry out routine patrols.

    “Additionally, there are at least 65 boats of various sizes patrolling numerous rivers and creeks daily. The NN patrol operations cover crude oil theft and anti illegal bunkering operations, anti-kidnapping and anti-hostage taking operations, anti-illegal fishing and anti-marine pollution, as well as maritime safety and administration operations.”

    While flagging off the exercise, the Chief of Defence Staff (CDS), Gen. Gabriel Olonisakin, who represented the Minister for Defence, Gen. Mohammed Ali, said the sea exercise was a necessity for the navy because it was the only way to ascertain the operational state of the force.

    Commending the navy for its ability to maintain its ships in spite of all odds, the CDS lauded the NN’s drive at curbing crude oil theft and other maritime crimes.

     

  • The Economist: $29.8b reserves fit for six months imports

    The Economist: $29.8b reserves fit for six months imports

    The $29.8 billion foreign reserves can only cover less than six months of imports – a threshold that may threaten Nigeria’s balance of payment transactions, Afrinvest West Africa Plc Managing Director Ike Chioke has said.

    In a report titled: Nigerian economy and financial markets: After elections … what next? released last weekend, he said the reserves have tumbled by 14 per cent to $29.8 billion despite the accretion to the reserves.

    Chioke said despite the N200 per dollar foreign exchange (forex) rate forecast for this year, the forex pressure may persist after the elections because of the fallen crude oil prices.

    The devaluation of the naira, he said, is taking its toll on the general price levels, arguing that as against the eight per cent inflation rate last December; general price level inched higher by 0.2 per cent each in January and February to settle at 8.4 per cent in February.

    Chioke expects the fiscal policy to remain tight after the elections, as the Monetary Policy Committee (MPC) considers whether to either preserve foreign portfolio investments or ease the monetary environment to encourage lending.

    He said: “As a result of the huge participation of the foreign portfolio investors in the Nigerian capital market, the need to attract capital inflow, as well as save the depleting external reserves year-to-date decline of 12 per cent to $29.8 billion may compel the CBN to keep the Monetary Policy Rate (MPR) at 13 per cent, or plus one per cent till end of 2015.”

    The persistent decline in crude oil prices, which exposes the economy’s weak revenue structure, has increased the country’s risk premium, Chioke said.

    “In a bid to reduce the challenge of increased lending, we expect the government, through the CBN, to come up with additional stabilisation funds, in addition to the recent N300 billion Real Sector Support Facility to select sectors that would foster diversification of Nigeria’s revenue base.

    “In the light of the Single Treasury Account (STA) policy, we expect the CBN to unleash the strings of public sector deposits from current 75 per cent as we expect less public funds will be available to the banks,” he said.

    He said the threshold of private sector deposits currently at 20 per cent, may be tweaked plus or minus five per cent before the year ends, if the exchange rate is stable.

    Chioke said it is expected that the CBN would revert the Net Open Position (NOP) to one per cent from 0.5 per cent before the year ends. Foreign Portfolio Investors (FPIs) fears.

    He said: “In a bid to stabilise the naira and preserve the external reserves, the apex bank devalued the naira by 8.4 per cent last November. However, with sustained pressure of the foreign exchange rate, the CBN shut down official window in February 2015, implying another tacit devaluation of the naira.

    “This move led to a relative stability in the currency market as CBN intervenes to meet excess demand through special intervention. We attribute this hike in general prices to increase in price of imported goods resulting from pressure on foreign exchange rate.”