Business
FG spends 97% of five-month revenue on debt servicing
The Federal Government has spent N1.8tn of N1.84tn revenue it generated for the five months (January-May 2021), on debt servicing.
This has thus indicated that the nation’s debt-to-revenue ratio is 97.8 per cent for the period under review.
This means that for every N100 revenue generated, N97 was expended on debt servicing, leaving the government with a meagre amount to spend on infrastructure — a pointer to gaps in revenue generation and high government spending.
Minister of Finance, Budget and National Planning, Zainab Ahmed, stated this while giving a presentation on the 2021 budget implementation, on Thursday.
She said the FG’s share of oil revenues for the five months was N289.61bn, representing a 50 per cent performance.
Giving the breakdown, non-oil tax revenues totalled N618.76tn, company income tax (CIT) and value added tax collections were ahead of the budget targets with N290.90bn and N123.85bn respectively.
“Customs collections was N204.0 billion (86% of target). Other revenues amounted to N762.70 billion, of which Independent revenues was N487.01 billion,” she said.
On the expenditure side, Ahmed said a total of N4.86 trillion was spent in the five months down to May — this excludes government owned enterprises and project-tied expenditures.
“Of the expenditure, N1.80 trillion was for debt service (37% of FGN expenditures), N1.50 trillion for personnel cost, including Pensions (31% of FGN revenues),” she added.
Ahmed noted that as of May, N973.13 billion had been released for capital expenditure.
She said the gross oil and gas revenue for 2021 was projected at N5.19 trillion and as of May, N1.49 trillion was realised out of the prorated sum of N2.16 trillion — this represents 69 percent performance.
“Oil and gas deductions were N194.31 billion (or 45.8%) more than the budget. This is mainly attributable to petroleum subsidy costs which was not provided for in the 2021 budget,” she said.
The minister also said, “After netting out deductions (including 13% derivation), net oil and gas revenue inflows to the Federation Account amounted to N872.16 billion. This is N864.20 billion or 49.8% less than the projection as of May.”
Ahmed said the amount available for distribution from the Federation Account during the period was N2.78 trillion
“The Federal Government received N998.57 billion, while the States and Local Governments received N506.59 billion and N390.48 billion respectively from the Main Pool Account.
“Federal, state and local governments received N132.70 billion, N442.33 billion and N309.63 billion respectively from the VAT Pool Account.”
She also announced that key parameters as well as other macroeconomic projections driving the medium-term revenue and expenditure framework had been revised in line with the emergent realities.
Inflation projection for 2021 was raised to 15 per cent from 11.95 in the 2021 budget.
Business
Finally, NERC unbundles TCN, creates new system operator
Finally, NERC unbundles TCN, creates new system operator
The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).
The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.
The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.
By this order, the TCN is expected to transfer all market and system operation functions to the new company.
The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.
The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.
Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”
Business
Naira depreciates again, trades at N1,402/$
Naira depreciates again, trades at N1,402/$
The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.
Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71
READ ALSO:
- Why I killed my one-year-old son – Delta woman
- Bandits kill nine civilian JTF members, kidnap three in Sokoto
- Yahaya Bello govt spending third term in office through Ododo – Clark
This represents a 0.84 per cent loss when compared to the previous trading date on Tuesday April 30, when it exchanged at 1,390.96 to a dollar.
However, the total daily turnover increased to 232.84 million dollars on Thursday, up from 225.36 million dollars recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira traded between 1,445.00 and N1,299.42 against the dollar.
Naira depreciates again, trades at N1,402/$
Auto
Appeal court takes over NURTW case as NIC withdraws
Appeal court takes over NURTW case as NIC withdraws
The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.
The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.
Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.
The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.
The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.
Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.
With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.
Terrorist attack claims 24 lives in Katsina community
Chicago priest blesses same-sex ‘spouses,’ says Fiducia Supplicans allows it
Many dead, houses razed in Delta tanker explosion
-
Auto3 days agoAppeal court takes over NURTW case as NIC withdraws
-
metro3 days agoInspector arrested with snatched car
-
metro2 days agoSecurity forces, vigilantes arrest kidnapper terrorising communities in Kogi
-
metro3 days agoTerrorists release video of kidnapped palace servant, others in Zamfara
-
Africa3 days agoMan who has lived in America for over 13 years says he’s tired, wants to return home
-
metro2 days ago19-year-old boy convicted for impregnating 14-year-old sister
-
News2 days agoDrama as Delta workers boo Gov Oborevwori over minimum wage
-
International1 day agoUS students slam Biden’s comments on Gaza encampments