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.
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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