The Federation Account Allocation Committee (FAAC) disbursed the sum of N617.57 billion to the three tiers of government in April 2019. This is according to the latest FAAC report released by the National Bureau of Statistics (NBS).
The report shows that Nigeria’s revenue allocation dropped by 4.8% in April 2019 after the sum of N617.57 billion was disbursed, compared to N649.19 billions that was disbursed in March.
The Details: The amount disbursed comprised of N446.65 billions from the Statutory Account, N92.18 billions from Valued Added Tax (VAT), N55 billion as Good and Value Consideration, N10 billion as Additional Funds From NNPC, N13.09 billion distributed as FOREX Equalisation Fund, and N652.55 millions exchange gain differences.
FG received the lion share: Just like in the previous months, the Federal Government (FG) received the highest share of the entire allocation in April 2019. Specifically, the Federal Government received a total of N257.76 billion from the N617.57 billion, states received N168.25 billions, and Local Governments received N126.58 billions. The sum of N49.82 billions was shared among the oil-producing states as 13% derivation fund.
More Details: Also, revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N5.12 billions, N6.15 billions and N3.87 billions respectively as cost of revenue collections.
Delta received the most: Despite the drop in revenue allocation to States, Delta State still maintained the top spot among the list of states with the highest gross revenue allocation. The State received N20.4 billion in April 2019.
Akwa Ibom also maintained its second position with N15.8 billion and Rivers ranked third highest recipient with N13.7 billions. Lagos State ranked 4th with N12.8 billions allocation for the review period.
Meanwhile, Bayelsa and Kano ranked five 5th and 6th highest recipients with N12.6 billions and N6 billions respectively. Further analysis shows that the top 5 states scooped 35% of the total revenue allocation for the month.
On the other hand, Osun (N3.9 billion), Gombe (N3.9 billion), Nassarawa (N3.8b billion), Ebonyi (N3.8 billion), Ekiti (N3.79 billion), and Kwara (N3.77 billion) all received the lowest share of April allocation respectively.
South-South States scooped N72 billions: Out of the six geopolitical zones, the South-South zone received the biggest of N72.7 billions, representing 33.3% of the total allocation. Both Northwest and Southwest both scoop N35 billions each for the period under review.
Also, the North East received N31 billions, while South East and North Central scooped the lowest share of allocation with N22.2 billions and N21.2 billions respectively.
Upshots: Seeing as many states are struggling to meet their financial obligations, a reduction in revenue allocation from the Federal Government could further compound their financial difficulties. On the flip side, this should serve as a challenge to state governors to seriously consider increasing their internally generated fund.
In just a few days, the newly elected governors will be sworn into power across States in Nigeria. They should brace-up for the task ahead. For instance, there is the N30,000 minimum wage increment which they must implement. Since many states depend mainly on federal allocation to keep the States running, it is not out of place to point out that there could be trouble between state governors and the organised labour; especially if state governors are eventually unable to pay the minimum wage.
United Capital Plc CEO purchases additional 1.5 million shares worth N8.03 million
Mr. Ashade has spent the sum of N8.03 million on the purchase of additional 1.5 million shares United Capital Plc.
The CEO of United Capital Plc, Mr. Peter Ashade has maintained a 3-month buying streak, acquiring an additional 1.52 million units of the firm’s shares worth N8.03 million.
This is according to a recent notification signed by the firm’s secretary, Leo Okafor and forwarded to the Nigerian Stock Exchange market today, as seen by Nairametrics.
The recent transaction which took place on January 20, 2021 saw the United Capital boss purchase an additional 1,515,092 units of the firm’s share at N5.30 per unit, totalling N8,029,987.60.
Nairametrics gathered that the recent transaction will raise the total number of shares purchased by the CEO in the last three months by an additional 4,669,387 units.
What you should know:
- Nairametrics earlier reported the purchase of an additional 1.28 million units of United Capital Plc shares by its CEO, Peter Ashade and the CFO.
- Ashade had earlier purchased an additional one million units of the company’s shares, worth N5.17 million.
- As at the time of reporting this, United Capital Plc share price ended trading at N5.39, down by 0.19%.
- The report of the recent transaction is in line with NSE policy on insider transactions.
January 2021 FGN Bond records oversubscription of N88.3 billion
FGN bond offer has received a total bid of N238.28 billion across all tenors.
The January 2021 FGN bond offer has received a total bid of N238.28 billion across all tenors, indicating it was oversubscribed by approximately N88.3 billion.
This fact was implicitly revealed through a disclosure by the Debt Management Office (DMO), seen by Nairametrics.
Nairametrics had earlier reported the offering of N150 billion worth of FGN bonds by the Debt Management Office for January 2021. In line with the notice, the auction occurred on the 20th of January, 2021 (yesterday).
The following are the key highlights of the 2021 FGN bond auction;
- A total of N91.84 billion was submitted for the 10-Year tenor worth N50 billion, implying that it was oversubscribed by N41.84 billion.
- The 15-Year tenor recorded a total subscription of N106.37 billion, implying an oversubscription of N56.37
- On the other hand, the 25-Year tenor was undersubscribed by N9.93 billion, after it recorded a total subscription of N40.07 billion.
What you should know
- Recall that the December 2020 FGN bond offer was oversubscribed by more than N70 billion, as reported by Nairametrics.
- Nairametrics learnt that the oversubscription is sequel to higher rates across all tenors for January 2021, at 7.98%, 8.74% and 8.95% for the 10-Year, 15-Year and 25-Year period respectively, compared to the rates of 6.945% and 7.00% for the 10-Year and 15-Year tenors at the last auction in December 2020.
Lafarge gains N111.1 billion on NSE in 14 trading sessions
The cement manufacturer gained an additional N1.45, thus extending year-to-date gains on the NSE to N111.1 billion.
Lafarge Africa Plc continues the streak of gains on the Nigerian Stock Exchange (NSE) today, as shares of the cement manufacturer gained an additional N1.45, thus extending year-to-date gains on the NSE to N111.1 billion.
This was uncovered by Nairametrics after tracking the performance of the shares of the company on the floor of the Nigerian Stock Exchange, from the open of trade on the 4th of January 2021, till the close of trade today on The Exchange.
A preview of the performance of the cement manufacturer on NSE revealed that the shares of the company which opened trading activities this year at N21.05 per share have rallied by 32.78% at the back of renewed investors’ buying interests, to set a 52-week record high price N27.95 at the end of today’s trading session.
Checks by Nairametrics revealed that Lafarge has gained N111.1 billion on NSE this year, as investors continue to bid the shares of the company higher, owing to the robust valuations of the company and its fundamental strength which has made the company investors’ delight at the current price.
It is important to note that the buying interest in Lafarge shares saw the market capitalization of the company increase from N339.1 billion to N450.2 billion alone this year.
What you should know
- At the end of today’s trading session, Lafarge gained an additional N1.45 per share, which translates to 5.47% increase, thus driving the shares of the company to close at a record 52-Week high price of N27.95, with 22.65 million shares of the company worth over N620.53 million, exchanged in 439 deals.
- Nairametrics reported that the Board of Lafarge Africa Plc resolved to sell off its 35% shareholding in Continental Blue Investment Ghana Limited, in order to cut down on costs impacting the Group’s profitability.