Subsidy: NNPC to deduct N114bn from June remittance to FAAC – Newstrends
Connect with us

Business

Subsidy: NNPC to deduct N114bn from June remittance to FAAC

Published

on

The Nigerian National Petroleum Corporation says it will deduct N114.3bn from its June remittance to the Federation Account and Allocation Committee due in July.

In April, the corporation had written the Accountant-General of the Federation, Ahmed Idris, that it would not make any remittance to the FAAC in May.

The NNPC had also deducted N126.2 billion from remittance to FAAC in June.

A report by THISDAY quoted a document obtained from the Ministry of Finance, Budget and Planning that detailed the NNPC’s presentation to the committee, which took place between June 22 and 23.

The corporation said it had continued to bear the burden of the underpriced sales of premium motor spirit (PMS), better known as petrol.

Signed by Bello Abdullahi, on behalf of Umar Isa Ajiya, chief financial officer, the document showed that N50 billion, which is part of the corporation’s financial obligations to its Joint Venture (JV) partners, meant to have been subtracted from the latest round of deductions remains pending.

“The sum of N126,298,457,944.36 was deducted as value shortfall resulting from the difference between the landing cost and ex-coastal price of PMS (petrol) recorded in April 2021,” the document stated.

“In addition, May value shortfall of N114,337,097,352.49 is to be deducted from June federation proceeds in July 2021 FAAC meeting. Also, the balance of March 2021 value shortfall of N50,000,000,000.00 remains outstanding.”

The NNPC remitted a marginal net sum of N29.647 billion to FAAC in May, which was shared in June, as opposed to its zero contribution in April, its N90.860 billion in January, N64.161 billion in February and N41.184 billion in March.

According to the document, the NNPC has been able to contribute a net sum of N225.852 billion to the federation for the year, out of its yearly projected remittance of N1.473 trillion and monthly value addition of N122.7 billion, leaving a variance of N820.684 billion.

Recently, Mele Kyari, group managing director of NNPC, had said that with the current exchange rate, the pump price of petrol should be N256 per litre.

“I know that so much work is going on, and then we have to manage the volume that we are exposed to between this price of N162 and N256. The difference comes back to as much as N140 billion to N150 billion cost to the country monthly,” he had said.

 

 

 

Business

CBN raises commercial banks’ capital base to N500bn

Published

on

CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

Continue Reading

Business

Tinubu orders creation of single-digit tax system

Published

on

Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

Continue Reading

Business

Naira gains further against dollar

Published

on

Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

READ ALSO:

The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

Continue Reading

Trending

Skip to content