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Business News

FAAC disagrees over revenue allocation for FG, States, LGs

Members of FAAC have disagreed over the amount presented by revenue-generating agencies for allocation to FG, State and Local governments.

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FAAC disagrees over revenue allocation for FG, States, LGs

Members of the Federal Account Allocation Committee (FAAC) have disagreed over the amount presented by revenue-generating agencies for allocation to the Federal Government, State and Local governments.

The committee had met to deliberate and approve the amount that would be shared by the three tiers of the government. However, it was not impressed with what was made available. The meeting, presided over by the Minister of Finance, Budget and National Planning, Zainab Ahmed, had in attendance, commissioners of finance from the 36 states in Nigeria.

FEC reviews Ajaokuta-Kaduna-Kano gas project contract, approves $2.571 billion, Don’t over heat bleak economic outlook – Finance Minister, FAAC meeting ends abruptly as members disagree over revenue allocation for FG, States, LGs

Zainab Ahmed, Finance Minister

Also present at the meeting, which took three hours and ended in the night, were the Accountant General of the Federation, Ahmed Idris, representatives of the Revenue Mobilisation Allocation and Fiscal Commission, the Federal Inland Revenue Services, and the Nigeria Customs Service.

It was reported that the amount presented for sharing by the revenue-generating agencies for the month of February 2020 was lesser than expected, so it left the committee disgruntled, causing the meeting to end abruptly, an official of the Ministry of Finance said.

[READ MORE: FAAC disburses N650.8 billion in December 2019, South-South states receive highest share)

Another official told Punch that the issue would now be handled by the National Economic Council which is chaired by Vice President, Yemi Osinbajo, and scheduled to hold a meeting today, Thursday. The NEC, comprising of the 36 state governors, the governor of the Central Bank of Nigeria (CBN) and other co-opted government officials, advises the President on the economic affairs of the federation.

Possible reason for allocation drop: Government revenue has dropped in recent times. The Federal Inland Revenue Service (FIRS) did not meet up with its set revenue target of N8.8 trillion in 2019. According to data from FIRS, the agency generated N5.26 trillion in 2019, which is just 59.8% of the target. And the new FIRS boss, Nami has stated that the tax agency might not meet the target for 2020.

Also, due to the development in the global oil market, as the oil price war between Russia and Saudi Arabia intensifies, government revenue is declining. The oil price war led to the crash of oil price as Brent crude oil now sells for $28.14 per barrel – the lowest since 2003.

READ ALSO: 10 Nigerian companies pay a combined N187.9 billion taxes in first half of 2019

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This has affected the government’s revenue mobilization as the budget is benchmarked on Brent crude oil is $57 per barrel. Note that fuel pump price now sells for N125. This, including the negative impact of coronavirus on businesses, have compelled the Federal Government to consider curring the budget.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Appointments

Standard Bank Group appoints Yinka Sanni as new Chief Executive of Africa Regions

Yinka Sanni has been appointed as Standard Bank Group’s Chief Executive of Africa Regions.

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Stanbic IBTC declares N10.4 billion interim dividend

The Standard Bank Group has announced the appointment of Yinka Sanni as the new Chief Executive of Africa Regions.

This announcement was made by the Group in a post shared via its official LinkedIn account. The bank revealed that Sanni will be replacing Sola David-Borha who is retiring after 31 years of distinguished service to the group.

His appointment will play an integral role in driving the growth of the Standard Bank Group in Africa further in the years ahead.

He is expected to build on the work of David-Borha, a renowned professional who played a key role in growing the Group’s Africa Regions portfolio in terms of capacity, market share and contribution to the group’s headline earnings.

What you should know

  • Yinka Sanni is a Fellow of the Chartered Institute of Stockbrokers of Nigeria.
  • He has served in key positions within the Stanbic Group, as the Chief Executive of Stanbic IBTC Holdings PLC, Chief Executive of Stanbic IBTC Bank PLC, Deputy Chief Executive of the Bank and Executive Director, Corporate & Investment Banking of the Bank.
  • He was also the pioneer Chief Executive, Stanbic IBTC Pension Managers Limited and the pioneer Chief Executive, Stanbic IBTC Asset Management Limited.

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Corporate Press Releases

P2P crypto marketplace, Bitzlato (BZ) partners with Lemonade Finance to ease money transfers across Africa

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

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Bitzlato (BZ), the latest P2P Crypto Exchange to enter the African market, has added Lemonade.Finance, a borderless payment platform for Africa, as a payment method to its platform.

Lemonade Finance provides 100% digital payment experience for Africans to seamlessly participate in the global economy from anywhere in the world without any hassle or regardless of where they are from.

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

Users in Nigeria will now be able to send Nigerian Naira (NGN) to MPESA at 0% transaction fee.

Speaking about this partnership, Ridwan Olarere, CEO, Lemonade Finance, said:

“We are excited to partner with such an innovative company like Bitzlato to connect more Africans through payment. Many Africans living on the continent face many difficulties when making payments as remittance companies charge high fees and are time-consuming. We are now providing our users with a cost-effective way of sending money to Ghana, Kenya, Uk and Europe.”

Commenting on the opportunities this provides to crypto traders on the BZ platform, Mike Lunov, CEO, BZ, said:

“This partnership will provide a much-needed gateway that enables the markets we serve to seamlessly interact with each other in a borderless and open environment. We seek to break the barriers that presently exist for cross border transfers and enable our users to generate value through the opportunities that accrue from cryptocurrencies trading. The innovation exhibited by the Lemonade platform, and the brilliance of its team assures users of top-notch, secure and reliable transfers going forward.”

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According to BZ, during the first month, BZ will refund commissions in manual mode while using Lemonade Finance, but this will be automated at the end of this period.

Following this partnership, BZ is now looking to partner with merchants in the crypto space especially in Nigeria, Ghana, South Africa that have a steady flow of Nigerian Naira (NGN) to increase liquidity on the platform.

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Take advantage of the new Lemonade Finance payment method on BZ, which offers zero transactional fees for money transfers from Nigeria into Kenya. Sign up on BZ and start trading crypto easily today.

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