Business
Q3: FG, states, LGs get FAAC’s N2tn, highest in 2020
The federation accounts allocation committee (FAAC) has disbursed a total of N2.054 trillion to the three tiers of government in the third quarter of 2020.
This is contained in the quarterly review report released by the Nigeria Extractive Industries Transparency Initiative (NEITI) on Tuesday.
A breakdown showed that the Federal Government received N812.22 billion; N676.5 billion to state governments; and N429.16 billion to local governments.
This is the first FAAC allocation in 2020 to hit the N2 trillion mark.
It is also 5.6 per cent and 6.2 per cent higher than the disbursements made in the first and second quarter respectively.
In the first quarter of the year, a total disbursement of N1.945 trillion was made while N1.934 trillion was shared in Q2 2020.
The report noted that the increased allocation is as a result of exchange rate adjustment by the Central Bank of Nigeria.
“The total amount disbursed in the third quarter of 2020 was the first time that total disbursements exceeded N2 trillion in 2020,” the report read.
“Important to note here is that the Central Bank of Nigeria adjusted the official exchange rate from N360/$1 to N380/$1 in early August. Since the revenue from FAAC is disbursed in naira, this necessarily means that more funds will be disbursed in months after the adjustment.”
The CBN has had to devalue the naira twice in 2020; first from N306/$ to N360/$ and from N360/$ to N380/$.
This development sustains a trend that third-quarter disbursements are always higher than disbursements in either the first or second quarter of the year.
With the exception of 2018, FAAC disbursements between 2015 and 2019 were highest in the third quarter
This is attributed to “increased demand for oil during the summer season, and the attendant surge in oil prices”.
Despite the increase in allocations within the year, the Q3 2020 disbursement is lower when compared to Q3 2018 and 2019.
The N2.054 trillion disbursed in Q3 2020 was 9.6 percent lower than the N2.273 trillion disbursed in the third quarter of 2019 and 9.8 percent lower than the N2.278 trillion disbursed in the third quarter of 2018.
NEITI explained that the dip in disbursements “was largely on account of the impact of COVID-19 and its associated effects on demand for oil, oil prices, economic activities and other sources of revenues”.
On total net FAAC disbursement, Osun received the lowest net disbursement (N9.39 billion), while Delta received the highest disbursement (N43.08 billion).
For deductions, Yobe had the lowest deduction of N81.98 million, while Lagos had the highest deduction of N17.35 billion.
The deductions of Lagos state were higher than the combined total deductions of 20 states: Yobe, Sokoto, Borno, Jigawa, Kebbi, Katsina, Anambra, Enugu, Ebonyi, Adamawa, Kano, Nasarawa, Kwara, Taraba, Niger, Edo, Abia, Kogi, Kaduna, and Rivers which totalled N15.72 billion.
The report also projected that actual oil revenue will outperform projected oil revenue for the fourth quarter although all tiers of government may struggle to meet their revenue projections.
Business
NERC warns DisCos against estimated billing
NERC warns DisCos against estimated billing
The Nigerian Electricity Regulatory Commission (NERC) yesterday warned electricity Distribution Companies (DisCos) not to forcefully migrate customers with faulty meters to estimated billing regime.
The warning came as the regulator reiterated its directive that the DisCos owe the obligation to replace faulty and old meters at no cost to customers.
Also, some customers yesterday bemoaned what they described as a ploy by the DisCos to frustrate customers into accepting estimated billing by surreptitiously denying them access to reload energy credits.
In a statement yesterday, NERC stated that it had been notified that the DisCos were instructing customers to apply and make payments for the replacement of spoilt and obsolete meters in their franchise areas.
The regulator noted that such instruction by DisCos contravened the Commission’s Order No. NERC/246/2021on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry (NESI).
The statement reads: “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.
READ ALSO:
- DSS detains former Ogun PDP gov candidate Adebutu
- Boniface recounts accident ordeal in Germany
- We’ll use military for mass deportation – Trump
“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.”
NERC reiterated that that no customer with a meter should be forcefully migrated to estimated billing.
According to the regulator, if any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.
NERC restated its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.
It urged the customers to report cases of non-compliance to its order by any DisCo through its designated channels.
Some consumers of Eko Electricity Distribution Company (EKEDC) and Ikeja Electric (IE), yesterday lamented their inability to load electricity tokens on their meters.
The situation has left several consumers stranded. A consumer on Lawanson, Surulere, under EKEDC, Cecilia Nwadie, said that several attempts to load her energy token in the last two days had been futile.
The effect of this is that she and her family has remained without power supply.
She said: “I tried to load my meter, but it failed. All that the meter indicated to me was “CALL”. When I eventually called EKEDC customer care, I was told that the meter has expired and that I should apply for another meter”.
For IE customers, it was mixed fortune. While some said they were able to load their tokens after several attempts, others insisted they have been unable to log onto the website provided by the utility for updates before the November 14 deadline.
An angry consumer of IE who identified himself as Ladi Ogundele, alleged that the ploy of the utility is to ensure consumers are placed on estimated billing just to exploit them.
He explained that the insistence of IE that consumers must pay for meter replacement even after a contrary directive by the Federal Competition and Consumer Protection Commission (FCCPC) and NERC is an indication that the game plan of the utility is to exploit customers.
The DisCo had been silent since the regulators wade in to ensure adherence to the rules.
“I think this is an acid test for both FCCPC and NERC. If they allow the DisCos to get away with this apparent disregard for customers, then both agencies of government would have failed,” Ogundele said.
NERC warns DisCos against estimated billing
Business
Naira exchanges for N1,735/$ in parallel market
Naira exchanges for N1,735/$ in parallel market
The Naira yesterday appreciated to N1,735 per dollar in the parallel market from N1,740 per dollar last weekend. However, the Naira depreciated to N1,690.37 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM rose to N1,690.37 per dollar from N1,652.25 per dollar last week Friday, indicating N38.12 depreciation for the naira.
READ ALSO:
- Osimhen to end season with us, despite Jan exit clause – Galatasaray
- NERC directs DisCos to provide free replacement for old meters
- Obasanjo failed to lay solid foundation for Nigeria’s democracy – Presidency
Naira exchanges for N1,735/$ in parallel market
Business
Nigeria to begin local manufacturing of vehicle spare parts – NADDC
Nigeria to begin local manufacturing of vehicle spare parts – NADDC
The National Automotive Design and Development Council (NADDC) says it has established necessary structures and frameworks to begin local production of vehicle spare parts.
This initiative is aimed at reducing Nigeria’s reliance on imports, which currently cost the country $1 billion annually.
The NADDC Director General, Joseph Osanipin, disclosed this during the conclusion of a two-week automotive engineering and software design training held in Abuja organised in partnership with Midas IT Co. of South Korea, a platform for advanced design and analysis.
The DG spoke through the Director of Research Design and Development at the NADDC, Fidelis Achiv, stressing that council is committed to transforming Nigeria’s automotive industry by increasing the percentage of locally manufactured components in vehicle assembly.
“We are working to achieve a level whereby we can go back to assembling vehicles that have up to 40% locally manufactured components. We have vehicle assemblies in Nigeria but the assembling that is going on is not adding much value to the economy.
“Vehicles that have been assembled come in completely built, and they just remove the tyres, remove the exhaust system, remove the engine, ship them, and come and assemble them here.
“But we want to transform from that to a level where these vehicles come in unpainted, the welding is done here, some components parts are produced here and the assembly will add more value, and employ more people. We have over 11 million vehicles on our Nigerian roads.
READ ALSO:
- Kidnap kingpin who abducted 20, collected N70m, arrested in Taraba
- Kidnap kingpin who abducted 20, collected N70m, arrested in Taraba
- Obasanjo’s comment on Tinubu mischievous, says Afenifere chief
“Of the over 3,000 parts in a vehicle, if we can leverage on producing just 10 that we can beat our chest, that in the whole world, Nigeria produces these 10 components and they are best, the market is going to be huge. Our economy will change,” he stated.
The training boot camp, which hosted 15 participants, aims to equip engineers with the skills necessary to achieve this vision.
“The essence is to train engineers to design and produce parts, making Nigeria self-sufficient in vehicle parts production,” Achiv explained.
Abdul-Lawal Zubair, Managing Director of FAZSAL Nigeria Limited, encouraged participants to apply their newly acquired skills practically and creatively to address challenges in the automotive industry
“You have not just seen the theory of design but with practicality. Solve the issues for us. There is a reason among all the software for this agency to choose Midas NFX.
“Let them be proud of you. They can call you for advanced training, possibly in South Korea. Don’t just know the software and keep it. Be innovative and give solutions,” he said
Nigeria to begin local manufacturing of vehicle spare parts – NADDC
-
metro3 days ago
South-West NURTW: Why we chose Oluomo over Baruwa
-
News2 days ago
[UPDATED] [Breaking] APC’s Lucky Aiyedatiwa wins Ondo governorship election
-
metro2 days ago
NURTW: Agbede urges Baruwa to congratulate MC Oluomo, in spirit of sportsmanship
-
Health21 hours ago
Constant sexual intercourse does not prevent prostate cancer – Urologist
-
Auto3 days ago
Soludo: Kojo assembly plant will make Anambra auto manufacturing hub
-
metro22 hours ago
Electricity: NERC directs DisCos to replace old meters free
-
metro2 days ago
Supreme Court sacks Remo monarch in Ogun State
-
metro22 hours ago
Oluomo: Reinstate Baruwa as NURTW president, Falana tells FG
You must be logged in to post a comment Login