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FAAC disburses N647.35 billion in February as allocation drops further

The Federal Account Allocation Committee (FAAC) disbursed the sum of N647.35 billion to the three tiers of government in February 2020.

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FAAC, IGR, Fiscal federalism in Nigeria, NEC Inauguration, Bailout Fund: FG begins deduction of N614 billion from states’ allocation in 2 weeks , Ekiti, Enugu, Bayelsa, 12 others attract no investment in 1H , States’ debt stock, Fiscal federalism

The Federal Account Allocation Committee (FAAC) disbursed the sum of N647.35 billion to the three tiers of government in February 2020.

Checks by Nairametrics confirmed that this marks a decline compared to N716.3 billion and N650.83 billion  that were disbursed in January 2020 and December 2019, respectively.

The February disbursement was disclosed in the latest monthly allocation report which was published by the National Bureau of Statistics (NBS).

According to the report, the Federal government received the giant share of N267.39 billion, followed by the 36 states which collectively received the sum of N176.92 billion. The local governments, on the other hand, received the sum of N132.94 billion.

The amount disbursed comprised of N524.59 billion from the Statutory Account, N16.30 billion from Non-Oil Revenue, N659.08 million from Excess Bank Charges Recovered for the Month, N104.76 billion from Valued Added Tax (VAT), and N1.04 billion exchange gain differences.

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FAAC disburses N647.35 billion in February as allocation drops further

Details 

The breakdown showed that the sum of N201.9 billion was disbursed to the Federal Government Consolidated Revenue Account and N4.8 billion as a share of derivation and ecology. See further breakdown below:

  • Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N6.17 billion, N6.94 billion and N4 billion respectively.
  • The Federal Government received N2.4 billion as stabilization fund, N8.06 billion for the development of natural resources and N6.58 billion to the Federal Capital Territory (FCT).
  • Oil-producing states received an additional sum of N46.2 billion as part of the 13% derivation fund.

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

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States Allocation: Delta State received N18.32 billion which is the highest share of the total gross allocation. Rivers State followed, having received a total of N14.28 billion while Akwa Ibom received N12.25 billion in gross allocation. Other top receiving states in the month of February include Lagos State with a total of N13.79 billion and Bayelsa State which received N13.39 billion.

On the other hand, five states with the least share of gross allocation in the month of February include – Ekiti, Kwara, and Ebonyi States with N3.96 billion, N3.97 billion and N3.99 billion respectively. Others include Nassarawa State which received N4 billion and Osun State with N4.13 billion.

States deductions: For the period under review, a total sum of N36.42 billion was deducted from the states’ allocation for the following reasons:

  • External debt deduction was put at N3.64 billion, while contractual Obligation (ISPO) was estimated at N6.44 billion. Other deductions represented the highest deduction as it cost the states a sum of N26.34 billion.
  • According to the NBS, other deductions covered National Water Rehabilitation Projects, National Agricultural Technology Support Programme and Salary Bailout.

Revenue decline: In recent times, government revenue has dropped due to the drastic slump in global oil prices. The price slump is mainly due to the oil price war between Russia and Saudi Arabia, a situation that has been complicated by the Coronavirus pandemic which has ravaged world economies, basically halting trading activities in most of the affected countries.

It is now feared that the Federal Government allocation to the three tiers of government may decline further in the coming months, as the country’s biggest export commodity continues to dwindle in price.

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What this means, therefore, is that it is high time the Federal Government and all states of the federation begin to look inwards in order to device other means of generating funds internally through the  revamp of other sectors of the economy.

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Business

#COVID-19: CACOVID spent N43.27 billion to support 3 key priorities – CBN

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CACOVID devotes N23 billion to feed Nigerians

The Central Bank of Nigeria (CBN) has revealed that the Coalition Alliance Against COVID-19 (CACOVID) has so far incurred an expenditure of N43.27billion on the acquisition of, not only medical equipment and supplies but also food palliatives for vulnerable Nigerians.

The recent press release noted that the funds raised by CACOVID was used to support 3 key priorities – Medical facilities and equipment, food relief programs and communications plans.

The breakdown of the expenditure in the aforementioned areas are:

  • Medical Facilities and equipment: In collaboration with other stakeholders, CACOVID developed 39 fully equipped isolation centers across the 36 States of the Country including the Federal Capital Territory (FCT). The sum of N4.19billion was spent in Building Isolation Centers. In addition, medical equipment such as PCR test kits for suspected cases of COVID-19 were procured along with other required medical items at a cost of N9.02billion.
  • Food relief programs: As a way of cushioning the impact of the lockdown on vulnerable citizens, CACOVID provided palliatives in the form of essential food items to 1.7million households, which is equivalent to supporting 8 million Nigerians. A total of N28.76billion was spent procuring these food supplies.
  • Communication plans: CACOVID also worked to improve awareness in rural communities on the COVID-19 virus, and the measures community health workers and other members of society should take when someone in the community is suspected of having symptoms similar to that of COVID-19. In lieu of this, expenses were incurred on Print, TV, radio, and social media as part of CACOVID communication plans.

Why this matters

The recent disclosure is in line with the principle of accountability and transparency, as the organization seeks to lay bare facts regarding expenditure incurred so far; thereby, nipping in the bud, suspicions and unfounded rumor.

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What you should know

Due to the sudden global health challenge (COVID-19), which wreaked havoc on most economies of the world, coupled with declining oil prices and declined government revenue; the Bankers Committee, comprising the Central Bank of Nigeria and the Deposit Money Banks, as well as key stakeholders in the private sector came together to set up an alliance in March 2020, known as the Coalition Alliance Against COVID-19 (CACOVID).

The ultimate objective is working with the government to provide support in areas that would result in improved health and welfare for vulnerable Nigerians.

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Companies

PZ Cusson announces retirement of Chairman, Kola Jamodu

PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.

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Kola Jamodu

The Board of Directors of PZ Cussons Nigeria Plc has announced the retirement of Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.

This disclosure was made in a notification signed by the Company’s Secretary, Jacqueline Ezeokwelume, and sent to the floor of the Nigerian Stock Exchange.

According to the notification issued by Mrs. Ezeokwelume, Chief Kola Jamodu will retire as a Non-Executive Director and Chairman of the Board effective 11 December 2020 to enable him to pursue other personal endeavours.

What you should know

Chief Jamodu joined PZ Cussons Group in 1974 and served in Executive positions for 24 years rising to the position of Chief Executive Officer of the Company, a position he held until he retired in 1999.

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He thereafter continued as a Non-Executive Chairman of the Board until 2001 when he was appointed as the Honourable Minister of Industry of the Federal Republic of Nigeria, a position he held until 2003.

He was reappointed as the Chairman of the Board of PZ Cussons Nigeria Plc in November 2014.

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Appointments

Abbey Mortgage Bank announces appointment of 6 Directors

The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.

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Abbey Mortgage Bank announce the appointment of substantive Managing Director, and 5 Directors.

Abbey Mortgage Bank has announced the appointment of 6 Directors, including Mr. Madu Hamman as the substantive Managing Director.

The disclosure is contained in a notification, signed by the Bank’s Secretary, Geoff Amaghereon Esq. and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.

What you should know

Five (5) other Directors were appointed by the CBN – 2 Executive and 3 Non-Executive Directors.

The names and portfolios of the Directors are; Mr. Mobolaji Adewumi – Executive Director; Mr. Oladipupo Ayodele Adeoye – Executive Director; Mr. Nonso Okpala – Non-Executive Director; Professor Marius N. Umego – Non-Executive Director; and Brigadier-General John Obasa (rtd) – Non-Executive Director.

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The notice also mentioned that all appointments have been approved by the Central Bank of Nigeria.

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