The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.86bn to the three tiers of government in March 2019.
This is revealed in the latest FAAC report released by the National Bureau of Statistics (NBS).
The latest FAAC report shows that Nigeria’s revenue allocation dropped by 4% in March 2019. Specifically, the sum of N649.19 was disbursed in February 2019, compared to N619.86 disbursed in March 2019.
- The amount disbursed comprised of N474.42bn from the Statutory Account, N96.39bn from Valued Added Tax (VAT), N4.02bn as excess charges recovered, N44.17bn distributed as FOREX Equalisation Fund, and N858.46m exchange gain differences.
- Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) received N3.91bn, N6.49bn, and N3.19bn respectively as the cost of revenue collections.
- Federal Government received a total of N257.68bn from the N619.85bn. States received a total of N169.93bn, while N127.72bn was allocated to Local Governments.
- The sum of N50.95bn was shared among the oil-producing states as 13% derivation fund.
- Delta, Akwa Ibom, and Rivers received the highest gross allocation for the month
- Ekiti, Ebonyi, and Kwara States received the lowest gross allocation for the month
Federal Government received highest 41.5% allocation among the three tiers
The NBS report shows that the Federal Government received a total of N257.68bn from the N619.85bn in March. All States across the federation received a total of N169.92bn and Local Governments received N127.72bn. The sum of N50.94bn was shared among the oil-producing states as 13% derivation fund.
Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N203.04bn was disbursed to the FGN consolidated revenue account; N4.63bn shared as share of derivation and ecology; N2.31bn as stabilization fund; N7.77bn for the development of natural resources; and N5.52bn to the Federal Capital Territory (FCT) Abuja.
Delta State tops highest allocation recipient
Delta State received N20.3bn allocation received in March 2019. This means that Delta state maintained its top spot among the list of states with the highest gross revenue allocation.
Meanwhile, Akwa Ibom also maintained the second position with N16.3bn and Rivers moved to the third highest recipient with N14.1bn. Lastly, Lagos state moved down and ranked 4th with N13.2bn allocation for the review period.
However, Bayelsa and Kano ranked 5th and 6th highest recipient with N13.18bn and N6bn respectively.
Kwara State received the lowest revenue allocation yet again
The Bureau’s report shows that Kwara State once again received the lowest revenue allocation with N3.8bn for the month of March. This shows a fall in allocation to the State when compared to N4.06 billion received in February.
Lagos State received the highest VAT allocation
As expected, Lagos State received N8.8bn in March 2019 from VAT, up from N8.5 billion received for February. This implies that Lagos State recorded a 3% rise in its VAT allocation for the month of March 2019.
Kano, Oyo, and Rivers ranked 2nd, 3rd and 4th as states that received the highest VAT with N1.7bn, N1.5bn and N1.5bn respectively.
Still on VAT allocation, Taraba, Nassarawa and Bayelsa received the lowest VAT allocation with N875.7 million, N836.1 million and N822.5 million respectively.
Why it matters?
All things being equal, the drop in FAAC for the month of March implies that economic activities may slightly slow down in states that witnessed a sharp drop in allocations received.
The drop in FAAC disbursement in affected states and local governments, mean fewer funds to use for various recurrent and capital expenditures. This is expected to have its spiral effect on key sectors of the economy.
Nigerian Real Estate and COVID in 19 Slides
Validate investment cases and focus energies on property sectors that are more resistant to shocks.
Nigeria is rapidly approaching an economic crisis as the COVID-19 global pandemic has put the world on lockdown and sent Brent crude oil prices to a 20-year low. Spurred by lower global demand and reliance on oil exports for 90% of its foreign exchange income, Nigeria’s economy and her fragile currency are being pushed to their breaking point.
In this report, we will focus on the impact this pandemic will have on the real estate market in Nigeria. So far, key themes include mass concessions, re-negotiation and restructuring activity, slowed decision making, stretched out project deliveries due to the lockdown and more. After outlining the potential property sector losers, hospitality and retail most especially, alongside potential winners (industrial and healthcare), we discuss the impact of the COVID-19 pandemic on individual property sectors and the direction of rentals, capital markets and more.
Within this uncertain environment, we recommend that market participants including asset owners, real estate service providers and others stress test their businesses at varying levels of reduced income, use the downtime for market research to validate investment cases and focus energies on property sectors that are more resistant to shocks.
Download the report through the link in the header.
IMF appoints Ceda Ogada as new director and secretary of the fund
Before joining the IMF, Ogada worked at the United Nations Conference on Trade and Development.
The International Monetary fund (IMF) has announced the appointment of Mr. Ceda Ogada as the Secretary of the Fund and Director of the Secretary’s Department with effect from September 1, 2020, following the retirement of the former Secretary, Mr Jianhai Lin.
This was disclosed in a press statement by IMF on Wednesday, July 15, 2020.
While making the announcement, Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), said, “Ceda has outstanding institutional knowledge, strategic and intellectual heft, and people leadership. His unparalleled ability to bring people together, combined with his profound appreciation of the Fund’s institutional history and legal principles, as well as a strong service orientation, will help the Fund to even more effectively serve our member countries in a very challenging economic environment.”
Mr. Ogada joined the IMF’s Legal Department in 1999 and rose through the ranks to become Deputy General Counsel in 2014. During this time, he has worked on virtually all aspects of the Fund’s work, including advising on the governance of the Fund, on country operations, helping to develop Fund policies and implementation guidance, and providing technical assistance to member countries.
According to the statement, ‘’Some of the key projects that he has worked on include the Fund’s enhanced policy to address governance and corruption issues, ensuring the adequacy of the Fund’s lending resources, reforms in lending policy such as the establishment of the Flexible Credit Line (FCL) and the Catastrophe Containment and Relief Trust (CCRT), reviews on surveillance policy and capacity development strategy and transparency, archives and communications policies.’’
The new Secretary of the fund was heavily involved in the work on euro area crisis countries during the global financial crisis. Recently, he has led the Legal Department in promoting good governance and transparency in several countries, together with the use of emergency financing for the COVID-19 crisis.
Before he joined IMF, Mr. Ogada worked at the United Nations Conference on Trade and Development as a legal expert and also before that he was in private legal practice in the United States. He holds a Juris Doctor from Harvard Law School and a B.A. in history from Dartmouth College. Mr. Ogada is a citizen of Kenya.
Just in: Suspended EFCC boss, Ibrahim Magu, finally released from detention
Magu’s lawyer confirmed his release from the custody of the DSS.
The suspended acting Chairman of the Economic and Financial Crime Commission (EFCC) has been released from police custody after about 10 days in detention.
According to a monitored report, this was confirmed by his lawyer, Tosin Ojaomo, who said that the EFCC boss is no longer under custody.
The suspended EFCC boss was invited by the presidential probe panel headed by Ayo Salami, a retired President of the Appeal Court to the Presidential Villa in Abuja on July 6 over allegations bordering on corruption and financial misconduct.
He was later moved to Area 10 Force Criminal Investigation Department (FCID) of the police in Abuja where he has since been detained.
Just earlier today, the Inspector-General of Police, Mohammed Adamu, asked Magu, to direct his bail application to the presidential probe panel.
This was in response to a request by Mr Oluwatosin Ojaomo, Magu’s legal representative, who asked the IGP to grant bail to his client on self-recognisance after the suspended EFCC chief had spent four days in custody.
But in a letter dated July 14, 2020, and addressed to Mr Ojaomo, the IGP said the police force is not investigating and detaining Magu, so, it cannot grant the bail request.
It also advised the lawyer to redirect his request to the chairman of the presidential probe panel for appropriate action.