Business
RMAFC presents new revenue sharing proposal to Buhari
- FG to get 45%, states 29.7%, LGs 21.04
President Muhammadu Buhari has received a report on the review of the vertical revenue allocation formula from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
The report proposes a sharing formula of 45.17 per cent for the FG, 29.79 per cent for state governments and 21.04 per cent for the local governments.
Under the current sharing arrangement, the federal government takes 52.68 percent of the revenue shared, states get 26.72 percent while local governments get 20.60 per cent.
The development is coming on the heels of the review of the current revenue sharing formula by RMAFC, which commenced in June, last year.
According to a statement by Femi Adesina, presidential spokesperson on Thursday, Buhari said he will await the final outcome of the constitutional review process before presenting the report to the national assembly.
‘‘Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment,” Buhari said.
‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.”
Buhari outlined some of the recommendations in the report as the “establishing local government as a tier of government and the associated abrogation of the state/local government account; moving airports; fingerprints, identification and criminal records from the exclusive legislative list to the concurrent legislative list, empowering the RMAFC to enforce compliance with remittance of accruals into and disbursement of revenue from the Federation Account as well as streamlining the procedure for reviewing the revenue allocation formula.’’
The President assured members of the commission that the FG would immediately subject the report to its internal review and approval processes, while awaiting finalisation of the efforts by the national assembly.
The President said, this strategy, rather than issuing an Executive Modification Order, as was done in 1992, was more in line with entrenching the democratic tenets.
“I am aware that the present revenue allocation formula has not been reviewed since the last exercise carried out in 1992,” he said.
‘‘Considering the changing dynamics of our political-economy, such as Privatisation, Deregulation, funding arrangement of Primary Education, Primary Health Care and the growing clamour for decentralisation among others; it is necessary that we take another look at our Revenue Sharing Formula, especially the vertical aspects that relate to the tiers of government.
‘‘This becomes more compelling as we need to reduce our infrastructural deficit, make more resources available for tackling insecurity, confront climate change and its associated global warming and make life more meaningful for our rapid growing population.’’
According to him, equitable distribution has always been observed in the sharing of national resources.
“‘I want to let you all know that I have keenly followed most of the discussions held in the geo-political consultative process and one thing that struck me clearly was the agreement that a review of our vertical revenue formula cannot and should not be an emotional or sentimental discussion and it cannot be done arbitrarily,” Buhari said.
‘‘All over the world, revenue and resource allocation have always been a function of the level of responsibilities attached to the different components or tiers of government.
‘‘I am, therefore, happy to note that the discussions were held along these lines and rested squarely on roles and responsibilities as spelt out in the 1999 Constitution (as amended).
‘‘However, I also note that in reaching the final decisions at most of these engagements, not much emphasis was placed on the fact that the Second Schedule of the Nigerian constitution contains Sixty Eight (68) items on the Exclusive Legislative List and the remaining Thirty (30) items on the Concurrent List requiring both the Federal and State Government to address.”
Buhari said for the nation to have a lasting review of the present revenue allocation formula, there must first be an agreement in the responsibilities of all the tiers of hovernment.
He noted that the proposal seeks a 3.33 percent reduction in the current federal government allocation and on the other hand an increase of 3.07 percent and 4.4 percent for the states and local governments.
He added that with regard to special funds, the report by the RMAFC proposed an increase of two percent for the Federal Capital Territory (FCT) and a decrease of 38 per cent for development of natural resources.
The President said the FG also made its input into the process of reviewing the vertical revenue allocation formula.
He said this was based on existing constitutional provisions for roles and responsibilities for the different tiers of government.
“We must note the increasing visibility in sub-national level responsibilities due to weaknesses at that level. For example: Primary Health Care; Basic Primary Education; Levels of insecurity, and; Increased remittances to state and local governments through the Value Added Tax sharing formula, where the Federal Government has only 15 per cent and the states and local governments share 50% and 35% respectively,’’ he added.
The chairman of RMAFC, Elias Mbam, said the proposed vertical revenue allocation formula advised 45.17 percent for the FG, 29.79 percent for state governments and 21.04 per cent for the local governments.
Under special funds, he said, the report by the commission recommended 1.0 percent for ecology, 0.5 percent for stabilisation, 1.3 percent for development of natural resources and 1.2 percent for the FCT.
Mbam said there was wide consultation with major stakeholders, public hearing in all the geo-political zones, administering of questionnaires and studying of some other federations with similar fiscal arrangements like Nigeria to draw useful lessons from their experiences.
According to the RMAFC chairman, the commission also visited all the 36 states and the FCT, the 774 local government areas to sensitize and obtain inputs from stakeholders.
He said literature reviews were conducted on revenue allocation formula in Nigeria dating back to the pre-independence period.
He added the commission received memoranda from the public sectors, individuals and private institutions across the country.
Mbam said since the last review was conducted in 1992, the political structure of the country had changed with the creation of six additional states in 1996, which brought the number of states to 36.
He said the number of local governments also increased from 589 to 774.
Business
We’re not involved in N40m HxAfrica mortgage scheme – FMBN
We’re not involved in N40m HxAfrica mortgage scheme – FMBN
By Dada Jackson
The Federal Mortgage Bank of Nigeria (FMBN) has distance itself from claims linking it to a N40 million mortgage pre-financing scheme promoted by Housing Exchange Africa (HXAfrica).
In an official disclaimer issued by Virginia Jang, FMBN’s Group Head of Corporate Communications, it clarified that the bank has no formal partnership or approval arrangement with HXAfrica concerning the alleged scheme.
“The management of the Federal Mortgage Bank of Nigeria wishes to disclaim reports in the media by HXAfrica (Housing Exchange Africa) on a purported N40 million mortgage pre-financing scheme, which referred to FMBN as a partner,” Jang stated
She further explained that while HXAfrica had applied for engagement with the bank, no approvals had been granted, and no formal agreements had been finalized.
Jang emphasized that FMBN remains committed to advancing housing initiatives, including the forthcoming Diaspora Mortgage Scheme, which is being developed in collaboration with the National Diaspora Commission (NIDCOM)
“While the FMBN and NIDCOM remain committed to the roll-out of the Diaspora Mortgage Scheme after obtaining the necessary regulatory approvals, we will endeavour to provide official information and updates on our respective websites and social media handles to prevent the public from being misled,” she added.
The statement also revealed that NIDCOM had issued a similar disclaimer regarding the HXAfrica scheme, urging the public to be cautious of unverified claims.
FMBN assured citizens that details of the official Diaspora Mortgage Scheme would be communicated through authorized channels once regulatory approvals are secured.
The bank reiterated its commitment to delivering credible housing solutions while encouraging the public to rely only on updates from its verified platforms.
Auto
Soludo: Kojo assembly plant will make Anambra auto manufacturing hub
Soludo: Kojo assembly plant will make Anambra auto manufacturing hub
Anambra State Governor, Professor Charles Chukwuma Soludo, has expressed optimism that the new Kojo automotive assembly plant at Umunya along the Enugu-Onitsha Expressway will not only boost the economy of the state but also reposition it as an automotive manufacturing hub.
The assembly plant nearing completion is expected to roll out its first set of vehicles under the Soludo administration soon.
The governor spoke at the just concluded Anambra State Investment Summit (ANINVEST 2.0) with Kojo Motors as one of the official partners and sponsors.
This year’s ANINVEST held under the theme “Changing Gears: Accelerating Anambra’s Economic Transformation”
was organised by the state government as a pivotal event in advancing the collective vision for rapid development of the state’s economy.
Speaking on the sidelines of the summit, Managing Director of OMAA, Chinedu Oguegbu, reiterated the plan of the company to invite Governor Soludo to commission the plant and drive the first locally assembled vehicle out of the Kojo Assembly Plant by the first quarter of 2025.
He said, “His Excellency is very passionate about the Kojo Motors auto assembly plant. He is very eager to see its completion and commencement of assembly of vehicles come to reality.
“I can assure him and the state government that we are doing everything possible to ensure we meet with the governor’s wishes and aspirations.”
The event brought together stakeholders from the various sectors of the local and global economy including industry leaders, development partners, financial institutions and other relevant participants, all united in a commitment to accelerating the economic transformation of Anambra State.
Anambra, according to the state governor, is fast becoming a renewed investors’ destination for different types of money bags rushing to the state to capitalise on the pledged ease of doing business to set up businesses.
“This time around, one of such massive investments is being undertaken by John Ikenna Oguegbu, an indigene of the state and chairman, founder and CEO, Kojo Motors Limited,” Chinedu Oguegbu said.
Last year September, Governor Soludo performed the groundbreaking ceremony of the Kojo Motors auto assembly plant for the local assembly of the OMAA range of gas-powered mini passenger and commercial buses as well as Chinese range of Yutong passenger and commercial buses.
While congratulating John Ikenna Oguegbu, chairman and chief executive of Kojo Motors Limited for bringing his wealth to his home state to invest. Governor Soludo also commended the Yutong buses manufacturers from China for the smart move of coming to Anambra State to set up the auto assembly plant in collaboration with the local franchisee.
The governor stated that the decision to allow prospective investors to come and invest in the state was not out of philanthropy or charity, but rather a business decision model that would take Anambra State to the world and bring the outside world to the state.
Governor Soludo pledged the state government’s commitment and patronage of the vehicles rolling out of the Yutong Assembly plant.
He declared that the state government under his administration was on course for massive industrial development, employment generation and prosperity for all its citizens.
Business
Naira slumps on NNPC, marketers importation of fuel
Naira slumps on NNPC, marketers importation of fuel
The naira has weakened further on the parallel market, dropping to N1,740/$ from N1,720/$.
Similarly, the NAFEM official exchange rate showed a slight depreciation on Friday, closing at N1,652/$ compared to the earlier rate of N1,650/$.
The Nigerian National Petroleum Company Limited (NNPC) and other oil marketers imported 1.5 million metric tonnes of petrol and 414,018.764 metric tonnes of diesel between October 1 and November 11, 2024.
The country’s inflation rate also spiked, with the Consumer Price Index (CPI) rising to 33.88% in October, up from 32.70% in September, according to the National Bureau of Statistics (NBS).
The oil importation statistics indicated 13,500 metric tonnes of jet fuel alongside petrol and diesel imports during the 42-day period.
The total value of these products was put at $1.9 billion or approximately N3 trillion.
The breakdown revealed that two billion litres of petrol, 500 million litres of diesel, and 17 million litres of jet fuel were imported.
But at an event in Lagos, NNPC’s Group Chief Executive Officer, Mele Kyari, highlighted the company’s commitment to reducing dependence on imported refined products.
The NNPC spokesperson Olufemi Soneye clarified that while the company prioritizes sourcing from local refineries, importation would continue based on economic factors.
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“Today, NNPC does not import any products; we are taking only from domestic refineries,” Kyari stated. Soneye, however, added, “The GCEO’s statement should not be construed to imply that NNPC is obligated to be the sole off-taker of any refinery or that we will no longer import fuel. While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability.”
The Dangote Refinery, which has advocated for sourcing locally refined products, faces challenges with pricing dynamics, making the transition complex.
Aliko Dangote, the refinery’s President, recently disclosed that it holds over 500 million litres of fuel in reserves.
The NNPC’s importation data showed Lagos, Warri, Port Harcourt, and Calabar as key discharge points for refined products.
Naira slumps on NNPC, marketers importation of fuel
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