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.
WorldRemit and The Nest partner to empower entrepreneurs in Nigeria, 3 others
WorldRemit has partnered with The Nest to empower entrepreneurs in Nigeria, Kenya, Ghana, and Zimbabwe.
WorldRemit, a global fintech platform, has partnered Nigeria’s tech innovation hub, The Nest, to empower entrepreneurs in Nigeria, Kenya, Ghana, and Zimbabwe.
This was disclosed by the company via a statement issued on Wednesday, and seen by Nairametrics.
According to the statement, the partnership is to build scalable business models across Africa via the WorldRemit Entrepreneurs Program.
In its quest to go beyond digitalizing payment methods across the globe, strengthen its renewed commitment to creating opportunities, and facilitate development in Africa, WorldRemit will now equip African entrepreneurs with effective skill sets and tools to build, innovate, and scale their businesses.
Country Manager (Nigeria and Ghana), WorldRemit, Gbenga Okejimi, explained that the partnership came right in time for impact, as many small businesses had taken a hit in the course of the tumultuous year.
He lauded the efforts of the team at The Nest Hub for their resolve at ensuring continuous education, and enabling a thriving environment for start-ups and small businesses.
He said, “Much of what Africa is today is due to its entrepreneurship, which is a key driver for socio-economic progress through significant job creation and innovation.
“At WorldRemit, we want to be known for fostering the African entrepreneurship spirit. We want to be a part of Africa’s future prosperity. By helping build entrepreneurs across our African markets, we are enabling growth and development.”
Co-founder, The Nest, Oluwajoba Oloba, explained that the Entrepreneurs Program will serve as a catalyst in building scalable business models across Africa as the continent enters into a new wave of business revolution.
He said, “The entrepreneurs will be equipped with effective skills and tools required to build and scale their businesses. The Nest definitely plays a big role in this important partnership, as the project partner leads the designing of the digital business course, otherwise known as the learning modules, that would be used in training selected entrepreneurs while also mentoring them on innovative ways to manage and scale their businesses.”
He added that beyond training and mentoring, The Nest provides entrepreneurs, creatives, start-ups, and small businesses with dynamic facilities and workspaces.
What you should know
- The WorldRemit Entrepreneurs Program will run simultaneously in Nigeria, Ghana, Kenya, and Zimbabwe, from November 2020 through January 2021.
- It is expected to empower 50 aspiring and budding entrepreneurs.
FG says vehicle owners to pay N250,000 to convert from petrol to autogas
FG says owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.
The Federal Government has revealed that vehicle owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.
This disclosure was made on Wednesday, December 2, 2020, by the Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum, Justice Derefaka, while on Channels Television’s Sunrise Daily, which was monitored by Nairametrics.
While stating that the conversion of vehicles from petrol to autogas will take at least 7 hours at the various conversion centres, Derefaka also pointed out that vehicle owners will have different payment plans to perform the conversion.
What they are saying
Derefaka, who is also the Programme Manager, Nigerian Gas Flare Commercialization Project, said:
“The cost varies. So, in terms of cost implication, it depends on the cylinder of the vehicle and of course, for a typical SUV cylinder, it is a bit higher. On the average, it is around N200,000 to N250,000 and this is for a four-cylinder vehicle, but it becomes a little bit higher for a six-cylinder SUV vehicle.”
Nairametrics earlier reported that the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed that the corporation is going to provide free conversion services in some selected NNPC retail filling stations across the country.
Derefaka further explained that there will be different payment plans for making the conversion, adding that vehicle owners can have agreement with commercial banks to get the conversion done.
He also said, “The owner of the car basically will decide to say I want to run on autogas or CNG or LNG and like the Honourable Minister had mentioned as well, conversion basically has different strands, you can partner with your bank and then the bank will now agree with the conversion centre to say ‘Convert this our customer’s car for free.’
“Not free in its entirety, but you now go and covert your vehicle. What happens is that the installer will put some form of mechanism, that each time you buy the gas; a certain amount will be deducted to pay for the conversion kits.”
While dismissing the notion amongst many Nigerians that the conversion fee is expensive, the ministerial aide noted that payment can be done within 5 to 7 months, in addition to saving up 45-50% cost associated with petrol.
What you should know
- The Federal Government had on Tuesday launched the autogas scheme, called the National Gas Expansion Programme.
- The programme involves the conversion of fuel-powered cars and generators from petrol to gas, and is aimed at deepening domestic usage of natural gas in its various forms.
- The programme is also in line with the Federal Government’s plan to make gas the first choice source of cheaper and cleaner energy. This follows the deregulation of the downstream sector of the oil industry with sharp increases in prices of petrol.
- The Minister of State for Petroleum Resources said that the availability of Autogas as an alternative fuel option will afford Nigerians cheaper, cleaner and additional choice of fuel. Cheaper than the price of petrol and better for automobile and other engines.
Conventional insurance firms can now set up their Microinsurance department – NAICOM
NAICOM has issued a circular allowing conventional insurance companies in Nigeria to exploit the huge opportunities in the Microinsurance window.
The National Insurance Commission (NAICOM) has issued a circular (NAICOM/DPR/CIR/32/2020) allowing conventional insurance companies in Nigeria to exploit the huge opportunities in the Microinsurance window.
The circular was signed by Akah L M, Director (Policy & Regulations), and disclosed that the requirements for the conventional insurance firms to be granted approval for the window operation includes:
- The insurer shall seek and obtain approval of the Commission to transact microinsurance business.
- Board resolution approving the establishment of a microinsurance department.
- Applicant shall apply for window microinsurance national operation licence.
- The department shall be headed by an experienced Insurance Officer, not below the rank of an AGM.
- The Insurance Officer must possess a minimum of 7 years post Associate of Chartered Insurance Institute of Nigeria qualification or a minimum of 10 years working experience in a technical department of an insurance institution.
- Any window operator shall segregate the financial records of its microinsurance business from that of the conventional business.
- Appropriate reinsurance arrangement shall be put in place.
What this means
The microinsurance window presents a gold mine waiting to be tapped by the conventional insurance firms in Nigeria, helping them to achieve critical mass in the market.
This would afford opportunities for those in informal sectors, as well as low-income people and households to enjoy insurance products and services that will protect them against unexpected events, that could threaten their livelihood and businesses.