Category: economy

Felicia Asuquo, Abuja 

The Federation Account Allocation Committee (FAAC), at its September 2024 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.203 Trillion to the three tiers of government as Federation Allocation for the month of August, 2024 from a gross total of N2.278 Trillion.

In a release signed by Mohammed Manga Director, Information and Public Relations,the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference (ED), the Federal Government received N374.925 Billion, the States received N422.861 Billion, the Local Government Councils got N306.533 Billion, while the Oil Producing States received N99.474 Billion as Derivation, (13% of Mineral Revenue).

Investigator news reports that the sum of N81.975 Billion was given for the cost of collection, while N992.617 Billion was allocated for Transfers Intervention and Refunds.

According to the Communique issued by the Federation Account Allocation Committee (FAAC),it states that at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of August 2024, was N573.341 Billion as against N625.329 Billion distributed in the preceding month, resulting in a decrease of N51.988 Billion.

From that amount, the sum of N22.934 Billion was allocated for the cost of collection and the sum of N16.512 Billion given for Transfers, Intervention and Refunds. The remaining sum of N533.895 Billion was distributed to the three tiers of government, of which the Federal Government got N80.084 Billion, the States received N266.948 Billion and Local Government Councils got N186.863 Billion.

Accordingly, the Gross Statutory Revenue of N1.221Trillion received for the month was lower than the sum of N1.387 received in the previous month by N165.994. From the stated amount, the sum of N58.415 Billion was allocated for the cost of collection and a total sum of N976.105 Billion for Transfers, Intervention and Refunds.

The remaining balance of  N186.636 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N71.624 Billion, States received N36.329 Billion, the sum of N28.008 Billion was allocated to LGCs and N50.675 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N15.643 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.252 Billion, States got N7.509 Billion, Local Government Councils received N5.256 Billion, while N0.626 Billion was allocated for Cost of Collection.

The Communique also disclosed the sum of N468.245 Billion from Exchange Difference, which was shared as follows: Federal Government received N220.964 Billion, States got N112.076 Billion, the sum of N86.406 Billion was allocated to Local Government Councils, N48.799 Billion was given for Derivation (13% of Mineral Revenue).

It further disclosed that
Companies Income Tax (CIT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), Petroleum Profit Tax (PPT), Oil and Gas Royalty and Customs External Tarrif levies (CET) all recorded decreases.

According to the Communique, the total revenue distributable for the current month of August 2024, was drawn from Statutory Revenue of N186.636 Billion, Value Added Tax (VAT) of N533.636 Billion, N15.017 Billion from Electronic Money Transfer Levy (EMTL) and N468.245 Billion from Exchange Difference, bringing the total distributable amount for the month to N1.203 Trillion.

The balance in the Excess Crude Account (ECA) as at September 2024 stands at $473.754.57

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, while welcoming FAAC members, appreciated them for their continued support and contributions, urging them to do more

While also thanking the Revenue Generating Agencies for their hard work in ensuring that the three tiers of government are running smoothly, HM Edun assured that Nigeria is going well, explaining that we have a President whose actions is in line with the Rule of Law and he is making sure that whatever the country is going through is a stringent economic conditions aimed at repositioning the economy for the benefit and future of our country

He emphasised that the policies are for the good of the nation it is for our own good, we have to go through turbulent situation before the economy will stabilize for good, he said.

He added that the challenges we are witnessing are not only limited to Nigeria alone but to other countries of the world. *We have to play our own role, we have to fasten our belts*, he noted

Felicia Asuquo

The Federal Government has said only public servants with duly registered National Identification Numbers (NIN) will be allowed to purchase as it flags off the sale of 30,000 metric tonnes of milled rice.

The Minister of Agriculture and Food Security, Abubakar Kyari while flagging off the exercise, said the move is to curb racketeering, and is part of efforts to crash the prices of food in Nigerian markets.

The Minister who represented President Bola Tinubu, Kyari said the intervention will be sold strictly “one man to one bag or one woman to one bag”.

He said the rice which is to be sold at a flat rate of ₦40,000 naira only for 50kg — is the federal government intervention for the sales of subsidised milled rice to ameliorate the prevailing food crises in Nigeria.

“This food intervention can be said to be timely considering the times and challenges we are in as citizens of this great nation,” he said.

“As one of the numerous efforts of the present administration to cushion the effect of high cost of food commodities, kindly join me to applaud the immense efforts of the present administration such as the release of 42,000MT of Assorted Food Commodities (AFC) to vulnerable and the 30,000MT of milled rice which is being flagged-off for sales to Nigerians today 5th September, 2024.”

The minister blamed COVID-19, the Russia-Ukraine war, climate change amidst other localized factors/challenges for the high cost of food prices.

“This has led to increase concern and risk of food insecurity and general decline in the standard of living globally. I therefore urge us to understand that the present challenges are not peculiar to our great country,” he said.

He added that the federal government being aware of the potential challenges associated with the sales of an important staple such as rice, at this critical period has deployed a multi-disciplinary machinery of Government, as well put in place certain processes and conditions to ensure the transparency, wider reach and success of this exercise.

“This includes one man one 50kg of rice, others are the verification of intending beneficiaries using relevant identification mediums such as the National Identification Number (NIN) and phone numbers to forestall multiple access to this food commodity by fraudulent individuals at the detriment of other citizens,” he said.

He implored citizens to cooperate with the relevant citizens to achieve the initiative.

“Let us work together to ensure that the dream of the present administration to uphold the fundamental right to food for all Nigerians is achieved. It is expected that with the injection of 30,000MT (1000 trucks of 30MT each of these important staples into Nigeria’s food balance sheet, it will not only crash the price of rice but also other closer food substitutes and alternatives.”

He called on Nigerians to remain steadfast and be patient with Mr. President as his numerous efforts to enhance Food security will soon begin to pay off.

The director, food and strategic reserve of the ministry, Haruna Sule Abutu outlined the procedure to buy the subsidised rice.

“To qualify for the one person one bag, you must have National Identification Number, of course you have phone numbers and those in public service are all registered under the Integrated Payroll and Personal Information System (IPPIS) platform,” he said.

“Once you have any of these three, at the point of sale, with the NIN logged into the system, a code number and a Treasury receipt will be generated, and with that the buyer can get to the collection center and pick up his bag. The receipt will indicate, time and point of collection to eliminate stampede.”he submitted

Tunde Omoniyi 

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.

Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”

He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.

According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery.

Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”

He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”he stated.

Tunde Omoniyi 

The 2023 Presidential Candidate of the Peoples Democratic Party, Alhaji Atiku Abubakar has called for caution on the part of the federal government, over ongoing public arguments between the Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission over crude supply to the refinery.

The Former Vice President who stated this on his X handle on Saturday,urged the federal government to ensure the success of the 650,000-capacity refinery.

“Each parent eagerly awaiting the arrival of a child will dutifully undertake the necessary measures to ensure that the nurturing and development of this precious blessing remain a primary focus,” he stated.

“With this understanding, I am cautious in considering any deliberate attempts to impede the progress of the Dangote Refinery, a significant private sector project positioned to meet our energy and forex needs.

“Alongside numerous fellow citizens of goodwill, I call upon all Nigerians to take resolute actions to provide reassurance that both internal and external forces are not collaborating to prevent us from reaping the benefits promised by this eagerly anticipated transformative endeavour,” he submitted.

Investigator news gathered that the crude crisis rocking the Dangote oil refinery took a new turn on Friday, after the Dangote Group accused the NUPRC of failing to effectively enforce the domestic crude supply obligations.

Reacting, the NUPRC said that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.

Dangote Refinery, however, said it did not receive any 29mb of crude.

…….Initiative Targeted to Improving Imo Livelihoods, Say Anunobi, Maduba_

By Christopher Ononukwe, Owerri 

As part of the proactive efforts of the Shared Prosperity Government of Imo State towards yet another economic development, employment opportunities, and improvement of livelihoods of Imo residents, the Commissioner for Rural Development and Economic Empowerment, Hon Chief Ifeanyi D. Oruh, recently hosted a team from the Agence Française de Développement (AFD) in his office.

The AFD delegation which was led by Timochee Witknowski alongside Steven Allen and Engr Saliyu Abubakar,the Head of FPMU Agrologistic was welcomed by the Honorable Commissioner for Rural Development and Economic Empowerment with two of his colleagues, Hon. Cosmos Maduba Commissioner for Agriculture & Food Security and Barr (Chief) Rex Anunobi Commissioner for Commerce, Trade and Investment.

While assuring the AFD team of the state government’s support ,he stated that the collaboration is a determined effort to support agricultural productivity, promote trade and industrialization, develop rural communities, and enable the Imo people to lead sustainable lives in accordance with the state government’s Shared Prosperity Agenda.

Along with staff and top management of the Ministry of Rural Development and Economic Empowerment, Commissioner Oruh led the team on a site inspection tour to look at possible locations for the wholesale food market which be evaluated in order to identify the suitable place for the market hub.

It will be recalled that as Gov Hope Uzodimma’s administration continues to demonstrate its commitment to infrastructural development and economic empowerment, this initiative is set to transform the state landscape, providing yet another centralized hub for wholesale food distribution which is expected to enhance food security, boost local commerce, and create numerous economic opportunities for the resident.

Emmanuel lkpeama

Governor Mr. Babajide Sanwo-Olu will tomorrow, Wednesday July 23, 2024 host a selected cast of over 200 investors from around the world at the Pre-Summit Investors’ Roundtable in anticipation of the third Africa Social Impact Summit (ASIS 3.0).

The event, scheduled to hold at 10 AM at the Eko Convention Centre, Eko Hotel & Suites in Victoria Island, will feature investment presentations, a Q&A session, interactive sessions, roundtable discussions and deal rooms for prospective investors ready to sign Memorandum of Understanding and partnership agreements with the state government.

Themed “Opportunity MADE in LAGOS”, the Investors’ Roundtable is aimed at highlighting and showcasing the high impact and ongoing investable projects in Lagos State, particularly in sectors aligned with the summit’s theme, namely: Health, Art, Culture, Creative Economy, Technology, Agriculture, Infrastructure, Transportation, and Telecommunications.

Speaking ahead of the highly anticipated event, the Commissioner for Commerce, Cooperatives, Trade & Investment, Mrs. Folashade Ambrose-Medebem, said, “By showcasing ongoing investment opportunities and fostering partnerships, the Pre-Summit Investor Roundtable will contribute to the overall success of Africa Social Impact Summit (ASIS 3.0) and support Lagos State’s vision of becoming a vibrant hub for social impact investment in Africa.”

According to her, the event, among other things, is aimed at showcasing the ‘Invest in Lagos’ brand by positioning Lagos State as a prime destination for foreign direct investment, local investors, the diplomatic community, and the diaspora, as well as highlighting existing investable ongoing projects within the state. It will also be used to highlight the comparative advantages and potential investment opportunities in the state, including the Lekki-Epe International Airport, the Fourth Mainland Bridge, Lagos Blue Rail Phase V, Omu Creek, Lagos Food Systems Hub, and the KITE Programme.

Commissioner for Information and Strategy Gbenga Omotoso explained that this edition of the Investors’ Roundtable is not another talk-shop, but a bespoke gathering dedicated to prospective investors who are ready to make investment decisions right away. “We have done many conferences and workshops, but this is the moment of decision for discerning investors and this event has been specially curated for them.”

The highly focused investors’ roundtable will bring together diverse groups of local and international investors, policymakers, and business leaders to explore investment possibilities in these crucial areas. It will drive sustainable growth and create a positive social impact in Lagos State.

Felicia Asuquo, Abuja

In a bid to cushion the economic hardship in the country, the Federal Government  has taken steps to address the issue of food shortage in the country by distributing 20 trucks of rice each to the 36 states of the Federation and the Federal Capital Territory (FCT), Abuja.

The Minister of Information and National Orientation, Mohammed Idris, disclosed this after Monday’s Federal Executive Council (FEC) meeting.

He appealed to the governors to ensure the effective distribution of the grains to the most vulnerable in the society.

Meanwhile, Nigeria’s inflation figure has reached a new high, hitting 34.19% for June 2024, according to the latest data from the National Bureau of Statistics (NBS).

As expected, there was a rise in food inflation for June 2024 in comparison with the figure recorded in May 2024.

“On a month-on-month basis, the Food inflation rate in June 2024 was 2.55% which shows a 0.26% increase compared to the rate recorded in May 2024 (2.28%),” the NBS report read.

According to the NBS, this hike was triggered by a rise in the average prices of food items such as groundnut oil, palm oil, etc (oil & fats class), water yam, cocoyam, cassava, etc (potatoes, yam & other tubers class), tobacco, catfish fresh, croaker, mudfish fresh, snail, etc, (fish class).

Felicia Asuquo,Abuja

In order to cushion the economic hardship in the country, the Federal Government has suspended import duty and other tariffs on staple food items, raw materials, and inputs for manufacturing, agriculture, and pharmaceutical products for six months.

This move is aimed at reducing inflation and stabilizing prices.

According to an Executive Order signed by President Bola Ahmed Tinubu, the suspension affects essential items like fertilizers, seedlings, chemicals, poultry feeds, flour, and grains. The order also grants a rebate on import duty by fixing the exchange rate at N800 to $1 for six months.

To enhance productivity, the government has directed the Nigeria Customs Service to fast-track the clearing of agricultural equipment, food items, and manufacturing inputs at ports, aiming to reduce clearance time by at least 50%.

The order encourages states and local government councils to adopt similar measures to boost productivity. It also mandates government agencies to refrain from actions that may negatively impact businesses or sectors.

This move is expected to improve local supply and capacity utilization in various industries, including rice milling. Authorized millers can now import paddy rice at zero duty and VAT for six months.

The order added that the government shall prioritize the implementation of approved capital expenditures on basic infrastructure, including access roads to farms, solar-powered food storage facilities, and public sanitation. It added that at least 50% of the incremental revenue from PMS subsidy removal and Naira flotation will be earmarked for this purpose.

Felicia Asuquo, Abuja 

The Central Bank of Nigeria (CBN) says mobile money operators including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint will resume the enrolment of new customers “in another couple of months”.

CBN Governor, Olayemi Cardoso, stated this on Tuesday at the 295th Monetary Policy Committee (MPC) of the apex bank in Abuja when the MPC jacked up interest rate from 24.75 per cent to 26. 25 per cent.

The CBN chief said the apex bank has engaged many of the players on the need to strengthen their operations.

Cardoso said to block money laundering and illicit flows the apex bank brought up “remedial measures that will help that sector to tighten up on onboarding and even existing clientele base”.

“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past and then you will see that sector going back into what they’ve been known to do before, but certainly with a very stronger regulatory framework,” he said.

In April, the apex bank stopped fintech companies from onboarding new customers, a move that has been seen as a clampdown on the financial sub-sector by the Cardoso-led CBN.

When asked why the apex bank took the decision, the CBN chief said reports that the CBN has decided to clamp down on fintech firms are “furthest from the truth”.

He said “the fintechs have not been singled out for any exceptional kind of treatment”, adding that the CBN remained proud of the exploits of fintech firms in the last number of year and the apex bank would continue to support and strengthen them.

“However, regulation is very critical in a sector that seems to have grown so incredibly rapidly,” Cardoso said, citing illicit flows within the sub-sector.

“More recently, we had course to take a deep dive look at the whole issue of illicit flows and money laundering particularly within the non-heavy regulated banking system and we all know some of the issues that came out with cryptos and some of the messages we put out after that, which of course, gave us some course to know that there is the need for heightened surveillance.”

He said the apex bank has had major handshake with security agencies to identify the places to tighten regulations and surveillance in the sub-sector.

Cardoso said, “For that reason, we were concerned with respect to how we saw the issue of anti-money laundering and illicit flows as they made their way within the various sub-sectors of the financial industry and we felt there was a need for us to take a breather and work with different players to strengthen regulations, not by any means to throw them out of business.

“Let me re-emphasise that as at this point in time, we have not revoked the licenses of any of the fintech organisations.”he said.