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  • Fed Govt, states, councils share N907b

    Fed Govt, states, councils share N907b

    The Federation Account Allocation Committee (FAAC) has disbursed a total sum of N906.955 billion as October 2023 Federation Account Revenue to the Federal Government, states, and local councils.

    According to a communique issued by FAAC at its November 2023 meeting, the N906.955 billion distributable revenue comprised: N305.070 billion statutory revenue; N323.446 billion Value Added Tax (VAT) revenue; N15.552 billion Electronic Money Transfer Levy (EMTL) revenue; N202.887 billion Exchange Difference revenue and N60.000 billion augmentation

    Total revenue of N1,346.519 billion was available in October 2023. Deductions for cost of collection amounted to N53.483 billion, and total transfers, interventions, and refunds totaled N386.081 billion.

    Gross statutory revenue of N660.090 billion was received in October 2023, a decrease of N354.863 billion from the N1,014.953 billion received in September 2023.

    Gross VAT revenue was N347.343 billion, an increase of N43.793 billion from the N303.550 billion available in September 2023.

    From the total distributable revenue of N906.955 billion, the Federal Government received N323.355 billion, the State Governments received N307.717 billion, and the Local Government Councils received N225.209 billion.

    A total sum of N50.674 billion (13 percent of mineral revenue) was shared to the relevant States as derivation revenue.

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    From the distributable statutory revenue of N305.070 billion, the Federal Government received N147.574 billion, the State Governments received N74.852 billion, and the Local Government Councils received N57.707 billion. The sum of N24.937 billion (13per cent of mineral revenue) was shared to the relevant States as derivation revenue.

    The Federal Government received N48.517 billion, the State Governments received N161.723 billion, and the Local Government Councils received N113.206 billion from the distributable Value Added Tax (VAT) revenue of N323.446 billion.

    The N15.552 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.333 billion, the State Governments received N7.776 billion, and the Local Government Councils received N5.443 billion.

    The Federal Government received N93.323 billion from the N202.887 billion Exchange Difference revenue. The State Governments received N47.334 billion, and the Local Government Councils received N36.493 billion. The sum of N25.737 billion (13% of mineral revenue) went to the relevant States as derivation revenue.

    The Augmentation of N60.000 billion was shared as follows: Federal Government received N31.608, the State Governments received N16.032 billion, and the Local Government Councils received N12.360 billion.

    In October 2023, Import Duty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), CET Levies, and Electronic Money Transfer Levy (EMTL) increased significantly, while Excise Duties and Companies Income Tax (CIT) recorded considerable decreases. Oil and Gas Royalties decreased marginally.

  • Accountability: Five states receive performance audit manual

    Accountability: Five states receive performance audit manual

    Rive state – Anambra, Delta, Ekiti, Kaduna and Yobe  have received performance audit manual from the Paradigm Leadership Support Initiative (PLSI).

    The Executive Director, Paradigm Leadership Support Initiative (PLSI) Segun Elemo stated that the manual would help to strengthen public audit practices and accountability at the state level.

    He stated this during thd commissioning of Performance Audit Manual as well as the opening of a five -Day workshop on Performance Auditing for Subnational Supreme Audit Institutions SAIs in Abuja yesterday.

    Elomo hailed MacArthur Foundation for supporting the initiative to fortify audit practices and leverage public audit information and instruments to tackle public sector corruption, reinforce accountability and enhance service delivery to underserved groups at subnational level.

    He stated that since the project commenced in 202, the organisation has worked with respective offices to commission the performance audit manual for the five states.

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    Mentioning that performance audit is at the heart of the attainment of the Sustainable Development Goals, he urged the states to utilise the manual to deliver good governance and sustainable development for the people in their respective states.

    Earlier, Office of the Auditor – General of the Federation (OAGF) expressed concerns over the lack of financial and administrative autonomy by sub-national governments to effectively carry out performance audits of government programmes and activities.

    According to the office, Performance audit required specialised skills, hence the need for more funds to employ skilled personnel to ensure effectiveness and efficiency of the audit reports.

    A Performance Auditor, Stephen Uwamah- who represented the Director of Audit Overseeing the Office of the Auditor General for the Federation, noted that performance audit was very expensive but unfortunately, most states including the Federal Government does not have financial and administrative autonomy that is they do not have resources like they should have like other countries.

    Uwamah said: “Supreme audit institutions in other countries have financial autonomy such that when they receive money they can use it to employ staff from various discipline because performance audit cut across various discipline.”

    The Performance Auditor lamented that a lot of audit institutions are not bringing out reports due to lack of funds, saying supreme audit institutions in other countries have financial autonomy such that when they receive money they can use it to employ staff from various discipline.

    While explaining that performance audit was a veritable instrument for achieving good governance at the sub-national level, he said Performance audit was the type of audit of economy, efficiency and effectiveness, as well as accesses how government uses resources at their control to achieve good governance..

    He called on the government to implement recommendations from the financial, compliance and performance audit reports, saying it was one thing to come up with audit reports, it was another thing for government to implement the recommendations from the reports because only when the reports are implemented that Nigeria can have good governance.

  • Private sector, states not remiting pension, says Trust Fund Pensions

    A Pension Fund Administrator (PFA), TrustFund Pensions Plc has accused the private sector and the state governments of non-remittance of pension under the Contributory Pension Scheme (CPS) for their workers.

    To this end, Trustfund has called on intending retirees to always check their balance to ensure that their employers have been remitting their pension as and when due.

    The call was made by the Head of Customers Relations Management, Trustfund, Mrs Racheal Obi, during a pre-retirement and retiree forum organised by Trustfund Pensions in Abuja.

    She said: “Private sector and state governments are worst culprits when it comes to non remittance of pension for the workers.

    “For the pre-retirees, we tell them what they ought to know in preparation for retirement. They should be conscious of the balances in their accounts, whether or not their employers have remitted as and when due, as well as the legal issues, so that they can sort them out before they approach us for payment. So that when they come, payment is seamless.”

    She pointed out that there were a lot of unfunded accounts due to the failure of private sector employers to fully comply, while the state governments constitute a weak link in the implementation of the scheme.

  • Sultan tasks FG, states on building, equipment of hospitals

    The sultan of Sokoto, His Eminence, Alhaji Saad Abubakar III, has on Tuesday tasked government at all levels on adequate construction and equipment of healthcare facilities to help in effective delivery of healthcare.

    The Sultan made the call in his keynote address to the first quarter review meeting of Northern Traditional Leaders Committee on Primary Health Care, which was held in Kaduna.

    The major focus of the meeting was to receive update on Community Health Influencers, Promoters and Services (CHIP) initiative launched by President Muhammadu Buhari in 2018.

    The CHIPS initiative is aimed at using community-based women to improve maternal and child healthcare,  part of which includes educating women on importance of visiting health facilities when need arises in order to avert deaths from preventable diseases.

    The sultan who decried the deplorable status of healthcare facilities in the country said, “I will like us to talk about the position of our health care facilities across the towns and villages.

    “You can’t come around with such  programs, (CHIPS)   advocating about going to clinics for antenatal and you don’t have the clinics. There are so many buildings across the villages in the name of clinics,  but there’s no nurses, nothing.

    “So, we will want to see states and Federal Government embark on construction and equipment of full healthcare facilities across the villages and towns where we have large population of our people.”

    While assuring that traditional leaders in the north will do everything humanly possible to ensuring that new born and mothers live healthy, the sultan said  provision for man power, drugs and shelter are very paramount in ensuring such is achievable.

    The sultan who admitted that the traditional leaders in ten years have recorded tremendous success in the Polio eradication program  however,  noted that, the disease is not the only  health challenge bedeviling the country, “We also have so many other diseases —and one of them is hunger.”

    Meanwhile, the Executive Director of National Primary Health Care Development Agency, Dr. Faisal Shuaib said the meeting is focused on how the traditional rulers can use their unique positions,  as custodians of heritage and culture to mobilize people in communities for improved primary health care, especially  on CHIPS.

    He said the traditional leaders have recorded success in polio eradication program and such success can be replicated in the CHIPS initiative.

    According to Shuaib, “The point to note is how they have have been able to provide leadership in all ramifications towards polio eradication, especially  as they have assisted in casting away doubts on polio vaccines and immunization.

    “When community members saw their leaders are advocating for immunization and vaccines,  they came out and started receiving it. As you can see,  we are just five months away from been declared a polio free nation. This is significant.

    “So in this first quarter meeting,  we are now expanding the horizon of this traditional leaders in terms of what they will be engaging in. Moving forward,  they will be taking up the role President Buhari asked them to take—which is providing leadership around CHIPS program.

    “President Buhari has put in place and laid a solid foundation  for a day in future where no Nigerian will be denied access to health care because they can’t afford it,” the Executive Director explained.

     

  • FG, states, LGs share N649.198bn for December

    A total of  N649.198 billion has been distributed as the federal allocations for the month of December, 2018 to the federal, state and local governments.

    The Technical sub-Committee of the Federation Accounts Allocation Committee (FAAC) in a communiqué yesterday read by the Accountant General of the Federation (AGF), Mr. Idris Ahmed, put the gross statutory revenue received at  N547.462 billion.

    The amount is lower than the N649.629 billion received in November by N102.167 billion.

    Ahmed noted that federation crude oil export sales dropped by 1.7 million barrels resulting in a drop in federation revenue by $83.54 million regardless of a significant increase in price from $72.84 to $81.06 per barrel for the month.

    ”There was also shut-in, shut -down and closure of production at various terminals due to fire leakages and flooding,” the AGF said.

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    Revenues from Value Added Tax (VAT), import and excise duties and royalties increased marginally while Company Income Tax (CIT) and Petroleum Profits Tax (PPT) decreased significantly.

    The total revenue distributed for the month (including VAT and Exchange Gain Difference) is N649.198 billion.

    Therefore, from the Net Statutory Revenue, Federal Government received N255.202 billion representing 52.68%; states received N129.442 billion representing 26.72%; local government councils received N99.794 billion representing 20.60%; while the oil-producing states received N45.524 billion also representing 13% derivation revenue.

    The cost of collection, transfer and FIRS refund came up to N 21.530 billion.

    Furthermore, from the revenue available from the Value Added Tax (VAT), Federal Government received N14.510 billion representing 15%; states received N48.365 billion representing 50% while the local government councils received N33.856 billion also representing 35%.

    The AGF maintained that the balance in the Excess Crude Account remains $0.631 billion.

  • FG, States, LGs share N649.198b monthly allocation

    A total of N649.198 billion has been distributed as federal allocation for the month of December, 2018 to the Federal,State Governments and Local Government governments

    The technical sub -committee of the Federation Accounts Allocation Committee (FAAC) in a communiqué on Friday read by the Accountant General of the Federation (AGF), Mr. Idris Ahmed, put the gross statutory revenue received at N547.462 billion.

    The amount is lower than the N649.629 billion received in November by N102.167 billion.

    Ahmed noted that federation crude oil export sales dropped by 1.7 million barrels resulting in a drop in federation revenue by $83.54 Million regardless of a significant increase in price from $72.84 to $81.06 per barrel for the month.

    “There was also Shut-in, Shut -down and Closure of production at various Terminals due to fire leakages and flooding,” the AGF said.

    Revenues from Value Added Tax (VAT), Import and Excise Duties and Royalities increased marginally while Company Income Tax (CIT) and Petroleum Profits Tax (PPT) decreased significantly.

    The total revenue distributed for the month (including VAT and Exchange Gain Difference) is N649.198 billion.

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    Therefore, from the Net Statutory Revenue, Federal Government received N255.202 billion representing 52.68%; States received N129.442 billion representing 26.72%; Local Government Councils received N99.794 billion representing 20.60%; while the Oil Producing States received N45.524 billion also representing 13% derivation revenue.

    The cost of collection, transfer and FIRS refund came up to N 21.530 billion.

    Furthermore, from the Revenue available from the Value Added Tax (VAT), Federal Government received N14.510 billion representing 15%; States received N48.365 billion representing 50% while the Local Government Councils received N33.856 billion also representing 35%.

    The AGF maintained the balance in the Excess Crude Account remains $0.631 Billion.

  • Fed Govt, states issue N3.24tr bonds in one year

    The Federal and state governments borrowed N3.24 trillion in local and international bond issuances last year, it was learnt yesterday.

    According to Nigerian Stock Exchange (NSE) Chief Executive Officer (CEO) Oscar Onyema, the  governments sourced N1.286 trillion in new debts through the local capital market last year.

    The Federal Government also raised $5.36 billion (about N1.95 trillion) in Eurobonds.

    Addressing stakeholders on the activities at the capital market yesterday at the Exchange in Lagos, Onyema said the Federal Government dominated the debt capital market in 2018, raising N1.16 trillion to finance fiscal and infrastructural deficits. State Governments also raised N125.59 billion in new debts during the year.

    According to him, the new debt issues buoyed the fixed-income market capitalisation by 11.75 percent to N10.17 trillion in 2018 as against N9.10 trillion in 2017.

    The governments crowded the private sector during the period as companies only raised a total of N31.47 billion.

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    “The market also witnessed the listing of a N100 billion Sukuk designed to finance critical road infrastructure across the country,” Onyema said.

    The total number of listed bonds on the NSE rose from 85 bonds in 2017 to 108 bonds in 2018. The increase helped to moderate the decline in number of quoted equities from 172 in 2017 to 169 in 2018. With Exchange Traded Products unchanged at nine, the number of listed securities at the NSE increased from 266 in 2017 to 286 in 2018.

    The total market capitalisation of the Exchange however declined from N22.72 trillion in 2017 to N21.90 trillion in 2018.

    The decline was attributed to a drop in total market value of quoted equities from N13.62 trillion in 2017 to N11.73 trillion in 2018.

  • How states can be viable, by Emefiele

    RATHER than depend on handouts from the Federation Account; states have been advised to explore their areas of strength to shore up Internally Generated Revenue (IGR) base.

    Central Bank Governor Godwin Emefiele, who gave the counsel, noted that looking inward remained a viable alternative to make the states viable in the face of the dwindling oil cash.

    Emefiele said: “I do not think states can’t be viable. They were self- sustaining in the days of regions. I don’t like states coming to Abuja with pan in hands.

    “We’ve abandoned agriculture. Everybody is now depending on oil. States can be viable if they leverage on their advantage.”

    The apex bank boss spoke on Monday evening when he received Osun State Governor Gboyega Oyetola in his office.

    Oyetola was at the CBN to request support for his programmes, especially in the areas of agriculture, Youth Entrepreneureship and Small and Medium Enterprises (SMEs).

    In the governor’s entourage were some of the officials superintending as administrators of ministries. The included: Dr. Charles Akindiji Akinola, Mr. Bola Oyebamiji, Mr. Remi Omowaiye, House of Representatives member Israel Ajibola and Chief Press Secretary (CPS) Adeniyi Adesina.

    The governor, who told his host that the state has programmes with potential to generate jobs in agriculture and mining, requested for support in form of loans for small scale entrepreneurs and farmers.

    He said his government plans an economic summit within the first quarter of next year to address its development and to make progress in job creation. He said the summit will also address the plan to raise revenue.

    Besides, there is a plan to establish nine farm centres in the nine federal constituencies, he added.

    Oyetola said: “Osun has the largest deposit of mineral resources especially gold but we have not been able to harness it for the full benefit of our people and the government. We want to streamline the artisan mining among other steps that we are taking to lift the economy of this state.

    “We need support for the SMEs and the Youth entreprenurship programme.”

    The governor lauded Emefiele for stabilising the naira and for his achievements so far, saying: “I’m not surprised because of your impressive antecedent.”

    Emefiele promised to support the state within the ambit of CBN programmes, adding that he had known the governor for many years as a man of integrity and competence when he was a private sector player.

    He said the plan to streamline the artisan miners and youth emterprenurship will receive the full support of the CBN.

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    Mines & Steel Development Minister Bawa Bwari also promised to assist the state in organising artisan miners to enable the state get the full benefit of the large deposit of gold and other mineral resources in its domain.

    “We are willing to partner the state as appropriate,” he said during a visit to his office also on Monday by the governor.

    The minister described the visit of the governor to his ministry less than one month after assuming office, as “an indication of the seriousness you’ve taken your role.”

    Oyetola told the minister of his plan to take the full advantage of the mineral resources in the state for the benefit of the people and government of Osun State.

    He said the state had about 16 mining licences which are not being utilised.

    The governor also visited Works, Power & Housing Minister Babatunde Fashola, Finance Minister Hajiya Zainab Ahmed and Qatar Ambassador to Nigeria Abdulaziz bin Mubarak Al-Muhannadi.

  • Fed Govt, states, councils share N788.139b as October allocation

    THE Federal, states and local government areas have shared N788.139 billion as revenue allocation that accrued in the month of October.

    But, the gross statutory revenue for the month was N682.161 billion, which was higher than the N569.281 billion received in the previous month by N112.880 billion.

    In a statement yesterday at the end of the Federation Account Allocation Committee (FAAC) meeting, Accountant-General of the Federation Ahmed Idris said crude oil export sales increased by 0.82 million barrels, leading to increase in revenue to the federation.

    AGF Idris added: “However, the average unit price dropped further from $75.69 to $73.92.

    “The shut-in and shut down of pipelines at various terminals persisted due to leaks and maintenance.

    “Revenues from oil and gas royalties, petroleum profit tax and value added tax increased significantly while Companies Income Tax, Import and Excise duties increased only marginally.”

    The breakdown of the figures released by the AGF showed that beneficiaries of the statutory allocation for the October disbursements shared N682.161 billion with the Federal Government keeping, N284.396 billion; state governments, N144.249; the 774 local government councils took N111.210 billion.

    However, N58.092 was allocated to the oil mineral producing states under the 13% derivation principles and N84.214 billion was disbursed under the Cost of Collection/Transfers/FIRS refund.

    With regards to the Value Added Tax (VAT) distributions for the month, a total of N105.172 billion was disbursed with the Federal Government receiving N15.145 billion; state governments and the Federal Capital Territory (FCT) keeping N50.483 billion and local government councils receiving N35.338 billion. But N4.207 billion was allocated to the Cost of Collection/Transfers/FIRS refund for VAT.

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    The AGF added that N806 million was shared as proceeds of Exchange Gain with the Federal Government receiving N372 million; state governments, N188 million; local government councils N145 million and beneficiaries of the 13% of mineral revenue derivation receiving N101 million.

    He said reports of revenue collection agencies and military pensions were read and adopted, adding that the next FAAC meeting has been fixed for mid-December in Abuja.

    But, FAAC has finally adopted a revenue disclosure template as directed by President Muhammadu Buhari.

    Buhari had given the directive following a bitter face off in June 2018 between the Nigerian National Petroleum Corporation (NNPC) and other FAAC members, particularly the commissioners of finance over the haphazard disclosure of revenues made to the committee by NNPC.

    As a sign of things to come with the adoption of the revenue template, the revenue into federation account from where the three tiers of government and other beneficiaries draw allocations grew by N112.88 billion.

  • Fed Govt to states: cut down on overhead, ensure fiscal discipline

    FOR states to raise their Internally Generated Revenue (IGR), they must cut down on unnecessary overhead costs and enthrone fiscal discipline, the Federal Government said yesterday.

    Finance Minister Mrs. Zainab Ahmed, who gave the counsel, said the application of such measures will enable governments at the states to properly manage the resources at their disposal.

    Mrs. Ahmed spoke at the opening of the 2018 Conference of the National Council on Finance and Economic Development (NACOFED) in Kaduna yesterday.

    Her Media and Communications’ aide Paul Ella Abechi said in a statement that the minister advised the states to “look inwards to harness various avenues to improve on their financial resources in order to meet demands in their states.”

    He said the minister was optimistic that the conference would afford the Federation Account Allocation Committee members, who are dominate the event, “a veritable forum for us to review the present Federation revenue sources, which we all agree is been monolithic”.

    The finance minister expressed the hope that participants will “be able to make actionable recommendations for sustainable improvement in the IGR and expenditure pattern. It is on record that due to persistent domestic fall in oil revenue, over the past years, it became extremely difficult, if not impossible for us to meet duly budgeted obligations.”

    She reminded members that they “need to develop cost effective strategies to increase our IGR, reduce unnecessary overhead costs, enthrone fiscal discipline and transparency so as to optimize available limited resources, while efforts are sustained to broaden our revenue base.”

    On the Federal Government’s part, she said the government will continue to account for all revenues accruing to the Federation Account in the most transparent manner and manage it efficiently to deliver on the dividends of democracy.

    She commended the wisdom behind the development of the new revenue reporting template that was engineered by her predecessor and the Commissioners of Finance. The implementation of the template, she noted, “will be one of the key reforms in revenue remittances into the Federation Account.”

    The minister urged the states to leverage on the sectors lying fallow in their states to consolidate on the financial allocation they receive from the Federation account.

    She said: “We must get back to agriculture, develop our solid minerals sector, further streamline and reinforce our tax collection systems, block all avenues for revenue leakages, continue to strengthen our borders to stem smuggling and abhor all forms of corruption.

    “We have to cultivate a new culture of efficient resource management and genuine paradigm shifts to enable us utilize the untapped resources in a more efficient manner.”

    These measures notwithstanding the mistakes of the past she said, “will rekindle our hope and embolden us to take practical steps towards unlocking the potentials in the non-oil sector in our respective states.”

    The minister had at the weekend in Lagos, said that strong capital market activities was instrumental in taking Nigeria out of recession and back to the path of positive growth.

    Mrs. Ahmed, who was represented by the Acting Director-General, Security and Exchange Commission (SEC), Ms. Mary Uduk, made the observation at the 22nd African Securities Exchanges Association (ASEA) Annual General Meeting and Conference in Lagos.

    She revealed that it was President Muhammadu Buhari’s decision to allocate money into the various sectors of the economy to stimulate economic growth.

    The minister noted: “Nigerian government’s deliberate effort gave support to the private sector a critical pillar in its policies, by ensuring macroeconomic stability and diversifying the economy from a focus on oil to other sectors and providing an enabling environment for the financial sector as a major catalyst in the implementation of the Nigeria’s Economic Recovery and Growth Plan (ERGP).”