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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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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.

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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)

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.

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

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  • 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.

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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Economy & Politics

CBN reacts to videos, pictures of new N2,000 and N5,000 in circulation

The videos and pictures of the purported circulation of the N2,000 and N5,000 banknotes as false, a piece of fake news that is being pushed out to the members of the public and asked them to disregard the falsehood.

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The Central Bank of Nigeria (CBN) has reacted to the circulated videos and pictures that claimed it had introduced N2,000 and N5,000 banknotes to members of the public.

The apex bank in a statement described the videos and pictures of the purported circulation of the N2,000 and N5,000 banknotes as false and a piece of fake news that is being pushed out to the members of the public and asked them to disregard the falsehood.

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Going further, they asked the members of the public to report to law enforcement agencies if they found anyone in possession of such banknotes.

This was disclosed by the Central Bank of Nigeria in a tweet post on its official twitter handle on Sunday, May 31, 2020.

The CBN stated, ‘’Videos and pictures of purported circulation of N2,000 and N5,000 banknotes are false and fake. Members of the public are advised to disregard such falsehood and to report anyone found in possession of such banknotes to the law enforcement agencies’’.

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https://twitter.com/cenbank/status/126713171778308505

It would be recalled that the planned introduction of the new N2,000 and N5,000 banknotes by the CBN under the leadership of the then Governor, Lamido Sanusi, in 2012, had elicited some mixed reactions from some experts.

The Federal Government at that time said that the proposed N5,000 banknotes will not be for mass circulation, but would only be reserved for banks and heavy cash users.

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Business News

UPDATED: CBN revises timelines for resolution of dispense errors, refund complaints

The apex bank said this is in line with its resolve to enhance the quality of service bank customers are given. Nigerian banks are, therefore, required to implement the revisions starting from June 8, 2020.

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The Central Bank of Nigeria, CBN, has revised the timeframes for the resolutions of all botched online transfers, POS transactions, and ATM withdrawals.

According to a brief statement that was posted on its official Twitter handle this evening, the apex bank said this is in line with its resolve to enhance the quality of service bank customers are given. Nigerian banks are, therefore, required to implement the revisions starting from June 8, 2020.

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Below are the revisions

In line with the revisions, any failed ATM transaction that occurs when a customer tries to withdraw from their bank must be reversed instantly. In the event that instant reversal fails due to technical challenges, the money must be manually reversed within a 24-hour period. Note that prior to the revision, the timeframe for such reversal is usually three working days.

Similarly, the resolutions for failed ATM withdrawals occurring when bank customers use their ATM cards on other banks should not exceed 48 hours, the CBN said. Before now, such a resolution would normally take three working days.

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Also, starting from June 8, banks will be required to resolve all disputed/failed online transfers and POS transactions within 72 hours. In other words, resolution for such disputes shall no longer be taking five working days as it used to.

In the meantime, the apex bank advised banks to ensure that all pending failed transactions/complaints are resolved “within two weeks starting June 8, 2020”.

“Meanwhile, key service providers in the Nigerian payments system have also committed to establish an integrated dispute resolution platform for the industry and enhance their payment system infrastructure and processes to reduce incidences of transaction failure,” the statement further disclosed.

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Tech News

Why Nigeria must invest in digital technology – El Rufai

Nigeria needs to look for a way to move from the agrarian and industrial into the services sector, and ICT is a way to do that.

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If Nigeria is to join the richer countries of the world, she must invest aggressively in technology, improve local production, and cut cost of governance.

These were some of the opinions presented by experts during a virtual colloquium tagged Government Unusual: Innovative Economic Solutions to Unlock Mass Prosperity held on Saturday afternoon.

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While making a presentation at the Rauf Aregbesola colloquium, Governor Nasir El Rufai noted that investment in digital technology must become a priority if Africa hoped to join the league of developed countries. He said,

Investing aggressively in digital technology is the only way Africa can preserve its growth and continue to lift people out of poverty. We must invest in the digital because henceforth, every sector of governance and living will depend on the digital.

READ ALSO: FG sets committee to support tech start-ups with affordable internet access amid lockdown

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He added that one of the lessons from the COVID-19 pandemic was the need for Nigeria to embrace technological advancement so that Nigerians could benefit from the numerous opportunities that came with it; and pointed at the recent decision to crash right of way charges as the first way to go.

In agreement with his position, CEO Lotus Capital, Mrs Hajara Adeola, added that investment in technology was the best way to get Nigerian youths to take advantage of global opportunities without migrating to other countries.

Nigeria needs to look for a way to move from the agrarian and industrial into the services sector, and ICT is a way to do that. Our youths are innovative and capable, so if we can train our youths in technology, then we can get homegrown solutions to some of our issues without them having to migrate” she said during the panel discussion.

Infrastructure for business

Unless infrastructural developments are shaped and directed towards business developments, the country will continue to invest in infrastructure which have no benefits.

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“You don’t shape infrastructure as how you think it makes sense. you do it in a way that follows the money because ultimately that is where prosperity comes for everybody,” Chairman of Citibank Nigeria limited, Yemi Cardoso said.

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The global terrain continues to change and Nigeria must develop a framework to align its growth strategy with the changes, identifying and eliminating bottlenecks as we go forward.

The colloquium, which was held online (via zoom), had over 700 participants across several countries, and was also streamed live on Youtube.

Panelists at the colloquium were Mallam Nasir El-Rufai, Governor, Kaduna State; Sen. Abubakar Bagudu, Governor, Kebbi State; Mrs. Hajara Adeola, CEO, Lotus Capital Limited; Mr. Bismarck Rewane, CEO, Financial Derivatives; Dr. Joe Abah, Country Director, Development Alternatives Incorporated (DAI); Dr. Yemi Cardoso, Chairman, Citibank Nigeria, and Boason Omofaye, the Moderator.

Dr Yemi Kale, Statistician General of the federation and CEO of the National Bureau of Statistics (NBS) was also present.

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