Q3: FG, states, LGs get FAAC’s N2tn, highest in 2020 - Newstrends
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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.


C’River ‘ll become largest cocoa producer in Nigeria soon – CFAN President




C’River ‘ll become largest cocoa producer in Nigeria soon – CFAN President

NATIONAL President of Cocoa Farmers Association of Nigeria (CFAN), Mr Adeola Adegoke, has said that Cross River will soon become the largest producer of cocoa in Nigeria.

Adegoke stated this at the inauguration of the Executive Committee of CFAN in Cross River’s, on Friday in Calabar.

According to him, Ondo State is presently known to be the largest producer of the crop in the country.

He said that the average age of a cocoa farmer in the state was between 55 and 60, describing this as an ageing population.

Adegoke said that Cross River had the potential in massive land and forest for cocoa farming, coupled with the youthful population cultivating the crop in the state.

Though the CFAN national president acknowledged the potentials, he, however, said that the state had to tap into them to succeed, as cocoa alone could run the state’s economy effectively.

“Enough of talking about cocoa estates established by the old Eastern Region. We need to start establishing new estates now.

“We want to see nothing less than 1,000 hectares of new cocoa estates established by the state.


“Enough of export of raw cocoa beans. We need to start adding value and coming up with cocoa wines, biscuits, sweets and soaps that we can consume and export.

“We cannot prosper by just exporting raw cocoa beans. It is, therefore, important for the state government to be deliberate in infrastructural development in cocoa farming communities,’’ he said.

Adegoke also stressed the need for extension services in the state through innovation.

He urged CFAN members to repay the loans they collected from government and also pay their annual dues to the association.

The CFAN national president disclosed that in 2024, the Third Cocoa Festival would be held in Calabar.

On his part, Gov. Bassey Otu, represented by Secretary to the State Government, Prof. Anthony Owan-Enoh, said that the state would do all within its powers to ensure that cocoa farmers got all the necessary inputs.

According to him, the state has been shortchanged for so long because it produces cocoa but doesn’t get the necessary recognition.

“Others come to the state to buy their cocoa but at the end, it is not counted for Cross River as the producing state.

“Going forward, Cross River will produce, sell and export, because we have the capacity and the farmers will get maximum yields for their investments.

“I will have a private meeting with the newly-inaugurated chairman of CFAN in the state, where he will table the concerns of the farmers so we can chart a new course for the sector,” he said.

In his remarks, the new CFAN chairman, Dr Ramsey Tiku, said that cocoa remained the mainstay of the state’s econony.

According to him, if cocoa development is relegated, the state will be relegating the development of its people.

Tiku said that CFAN would partner with different groups and ministries to create an action plan that would add value to cocoa production in the state.

While thanking members of the association for the confidence reposed in him, he stressed the need for them to start looking at the regeneration of cocoa estates in the state and how to generate data for farmers.

C’River ‘ll become largest cocoa producer in Nigeria soon – CFAN President


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Excitement as Dangote refinery welcomes first crude oil shipment



Excitement as Dangote refinery welcomes first crude oil shipment

Excitement rippled through the air as the Dangote refinery marked a significant milestone by receiving its first shipment of crude oil, heralding the commencement of operations for the eagerly anticipated $20 billion plant.

The OTIS tanker, carrying a cargo of 950,000 barrels of Nigeria’s Agbami crude, set sail on December 6 and is en route to Lekki, the closest land port to Dangote’s offshore crude receiving terminal. This shipment, chartered by the Nigerian National Petroleum Company (NNPC), signifies the initiation of crude supplies for the refinery’s operations.

The tanker’s estimated arrival on Thursday, December 7, at 8 pm marked the beginning of a new era for the Dangote refinery, which former President Muhammadu Buhari officially commissioned in May. The excitement was palpable as the refinery gears up to contribute to Nigeria’s oil industry.


The NNPC, holding a 20% stake in the refinery, agreed to supply 6 million barrels of crude oil as feedstock to jumpstart Dangote’s operations. The first shipment is a symbol of this initial supply.

Agbami, operated by Chevron, is a major deepwater development in Nigeria’s central Niger Delta, producing approximately 100,000 barrels per day of light sweet crude. The refinery is designed to process multiple crudes concurrently, with plans to handle three Nigerian crude grades—Escravos, Bonny Light, and Forcados.

As the ship approached the Lekki Anchorage area in Lagos, an insider from Dangote revealed that preparations were in place to receive the shipment. Following regulatory clearances, the refinery’s management is set to commence the process of barging the crude, with ceremonies planned to commemorate this historic event.

Jasper Nwachukwu, an oil and gas expert, emphasized the significance of ensuring sustainable domestic supply to the refinery for maximum benefit to Nigeria. He suggested that as an oil-producing nation, Nigeria should be the direct supplier to the Dangote refinery. The commencement of operations is not only a momentous event for Dangote but also a positive development for the Nigerian oil industry.

Excitement as Dangote refinery welcomes first crude oil shipment

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Lagos-Ibadan rail to get three more trains as NRC opens two new stations



Lagos-Ibadan rail to get four more trains as NRC opens two new stations

The Nigerian Railway Corporation will soon increase the daily train trips on the Lagos-Ibadan standard gauge rail line from two to six.
Railway District Manager (RDM) for Lagos, Augustine Arisa, an engineer, disclosed this in an interview with some select journalists including NewsTrends reporter.

He said four more trains, two each from Lagos and Ibadan, would be added as soon as ongoing work on the telecommunication facility was completed. The facility will ensure smooth communication and between the train driver and the control tower.
Arisa spoke just as the corporation has opened for operation two recently completed train stations along the route, Ijoko and Papalanto.
The RDM said, “We currently run two return trips on Lagos-Ibadan standard gauge line. I want to run six trains daily when the telecommunication facility is fully ready.
“I also want to move more containers from the port. This will no doubt positively affect the prices of goods in the market.
“It’s a lot of trailers that will be taken off the road. In the long run, it makes the products being carried cheaper for the final consumers/ buyers
“The double issue of accumulated demurrage and port congestion will also be solved with the evacuation of cargoes by rail. It saves the importer the cost of demurrage and ultimately makes the goods cheaper.”
He also spoke on the measure being taken to reduce the cost of moving containerised goods from Apapa port, Lagos, to Ibadan, Oyo State, following complaints by importers and customs agents.
Already, he said the Managing Director of the NRC, Fidet Okhiria, (an engineer), had set up a committee to review the container haulage rate in order to make it competitive and attractive to more people.
He said, “When the issue came to us, the MD immediately called a meeting and set up a committee to review the situation.
“All over the world, people complain of double handling.”
“On the complaint, we are expecting the report of the committee for a possible downward review of the freight rate,” Arisa added.
Meanwhile, the corporation has officially inaugurated the Ijoko and Papalanto train stations.
The report of the opening was obtained by NewsTrends from the NRC website on Tuesday.
This is therefore good news for people hoping to board or drop the train at these stations.
Before now, the train only stopped at Agege, Abeokuta and Omi Adio after taking off from Mobolaji Johnson Station in Lagos or Obafemi Awolowo Station in Ibadan.

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