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According to this report, only 2 states earn more than they receive as Federal allocation

How does your state fare?

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Economic Confidential magazine has released its Annual States Viability Index (ASVI) for 2016 and the report shows that only 2 states in the country can boast of Internally Generated Revenue (IGR) higher than what they receive from the Federal Government as allocation. These states are Lagos and Ogun whose IGR were 169% and 127% of the allocation they received in 2016.

The report also indicates that 14 states earned IGR of 10% or less of what they received as Federal allocation. Thus, these states were mainly surviving on the FG allocation, without which they would have packed up. The worst 5 performers were Borno, Ebonyi, Kebbi, Jigawa and Yobe States.

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The North-South geographical divide also showed that more Northern states were heavily reliant on FAAC allocation as only 3 (Kwara, Kaduna and Kano) earned IGR of up to 20% or more of their allocation. In contrast, 8 states in the South recorded over 20% IGR in 2016. They are Lagos, Ogun, Rivers, Edo, Delta, Cross River, Enugu, and Oyo States. In total, the IGR of the 36 states of the federation totaled N801.95 billion in 2016 as compared to N682.67 billion in 2015, an increase of N119.28 billion.

Economic Confidential claims that the index was “carefully and painstakingly computed” using IGR of states from Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDA)s. See below for full list.

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Patricia

Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

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Corporate Press Releases

Coronavirus presents a tremendous opportunity to attract domestic investment in Nigeria – Yewande Sadiku

Increased domestic investor activity can also trigger foreign companies expanding or partnering with Nigerian businesses.

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On Thursday, 16 July 2020, Yewande Sadiku, the Executive Secretary and Chief Executive Officer of Nigerian Investment Promotion Commission (NIPC) was a guest on Arise Xchange, the weekly global business report of ARISE TV Networks where she shared her thoughts on how the coronavirus pandemic has affected Nigeria’s
strategy in soliciting foreign investments and renewed focus in local investors focusing on stimulating local businesses.

Commenting on UNCTAD’s forecast which estimates that foreign direct investment flows will decrease by 30-40% in 2020/2021, Sadiku explained that “as the pandemic worsens and economies further contract, our projection remains that those UNCTAD figures will shrink even further”. She added, “Investment announcements which we track and share daily through our newsletter show that $5.06 billion investment announcements were recorded in the first half of 2020 – this is a third of what was recorded within the corresponding period last year”. Nevertheless, the biggest investments for new entrants from the half-year were recorded from Kaduna, Nasarawa and Ekiti states.

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Addressing the anchor, Boason Onafeye’s question on the 33 projects announced, the importance of tracking investments, she explained that “in the first half of 2020, NIPC tracked 33 projects across 15 states and the FCT, versus in the first half of 2019 where the Commission tracked 43 projects in 10 states and the FCT. Our meticulous
tracking gives the Commission an understanding of the sectors, sub-national areas that excite investors. Additionally, it enables us to advise the government on policy changes that are required to reverse or thrust policy-making.”

While FDI is expected to slow down because of COVID-19, we are also presented with new optimism for local investments and businesses to take advantage of some unique opportunities presented by COVID. In particular, fintech, e-commerce, food processing is witnessing increased consumer activity. Increased domestic investor
activity can also trigger foreign companies expanding or partnering with Nigerian businesses.

On her outlook for the rest of 2020, she expressed her belief that “many economies will be focused on investment-driven growth and getting their investors to look internally and invest inwards to stimulate local businesses. This will also happen alongside a renewed zeal on impact investment, as investors would not only consider the returns on their investments but the impact their capital will have on the overall health of economies.” She further added that there will be a continuous increase in the domestic manufacturing capacity of essential and critical commodities per
country.”

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Yewande Sadiku is the Executive Secretary/CEO of Nigerian Investment Promotion Commission, NIPC. She was appointed in September 2016 by His Excellency, President Muhammadu Buhari, GCFR with a mandate to encourage, promote and coordinate investment in the Nigerian economy. Sadiku a seasoned investment banker with over two decades’ experience until her appointment, was Executive Director, Corporate and Investment Banking at Stanbic IBTC Plc.

During her period at the bank, she was instrumental in several landmark transactions including, the $535m first dual listing of Seplat petroleum on London and Nigerian Stock Exchanges, raising public and private funding for Access Bank, Dangote Sugar, Flour Mills Nigeria, Zenith Bank, MTN Nigeria, Nigerian Bottling Company, but
to name a few.

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Business

Just-in: Lagos cancels 2018 land use charge

The government reverted to pre-2018 land use charges.

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LAND USE CHARGE, Lekki sealed buildings, Lagos state governor issues new guidelines for lockdown, consider full reopening of its economy

The Lagos State Government has revoked the 2018 land use charge.

This was disclosed by the Lagos Commissioner for Finance, Dr Rabiu Olowo, on Wednesday. According to him, the government reverted to pre-2018 land use charges.

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He said, “The penalties for land use charges for 2017, 2018, and 2019 have also been waived, which translates to a loss of revenue amounting to N5.6billion.”

Details soon…

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Energy

FG increases fuel pump price to N138.62 per litre

Kerosene would be sold for N160 at depots and diesel is set at N160 per litre in Lagos.

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Subsidy and PIB, petrol price, PPPRA, We have sufficient PMS stock for 38 days- DPR 

Petroleum Products Marketing Company, PPMC, a subsidiary of the NNPC has increased the retail pump price for petrol to N138.62 for August.

The PPMC announced this in a statement viewed by Nairametrics and signed by the Manager of Sales, Mohammed Bello on Wednesday morning and says the new price changes would be effective from the 5th of August.

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READ: NNPC releases audited financial statements, refineries record losses of N154 billion

Backstory:

In June, Nairametrics reported that the Petroleum Products Pricing Regulatory Agency (PPPRA) reduced petrol price to N121.50 per litre.

After a review of prevailing market fundamentals in the month of May and considering marketers realistic operating costs as much as practicable, we wish to advise of a new PMS guiding pump price with the corresponding ex-depot price for the month of June 2020, as follows; price band N121.50 – N123.50 per liter,” the body had said.

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READ MORE: Reps to investigate alleged illegal withdrawal of $1.05 billion from NLNG account

The PPMC also disclosed in today’s statement that the wholesale depot price would be sold to marketers at N113.70, while the retail prices were set at N138.62 per litre.

However, fuel marketers are expected to adjust to the new changes by selling at N145, as the price of petrol is being sold at N143.80 per litre before the new effective changes.

READ MORE: Investors are now rushing into Ethereum, as gains surge by 262% in 4 months

Other price announcements include Kerosene which would be sold for N160 at depots and diesel, which is set at N160 per litre in Lagos while at the Oghara depots it would be sold at N165 per litre.

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