Business

FG, States, LGAs Share N4.55trn In Nine Months

Published

8 years ago

December 1, 2017

The Federal Government, states and local government authorities shared a total of N4.55 trillion between January and September this year as disbursements from the Federation Accounts Allocation Committee (FAAC).
According to the latest quarterly report of the Nigerian Extractive Industries Transparency Initiative (NEITI), released in Abuja on Wednesday, out of the N4.55 trillion that was shared in the review period, N1.76 trillion was disbursed in the third quarter as against the N1.38 trillion and N1.41trillion shared in the second and first quarters of the year, respectively.
It also showed that between January and September, the Federal Government received the highest allocation of N1.85 trillion, followed by state governments with N1.51trillion and the 774 local governments with N913.8 billion.
The sum of N271.78 billion went to the Department of Petroleum Resources, Nigeria Customs Service and the Federal Inland Revenue Service as costs of revenue collection.
Further analysis showed that the revenues shared to the federating units were higher in the third quarter, a situation that has been the pattern for some years now.
For instance, while the Federal Government got N549.41billion in the second quarter of 2017, the third quarter figure was N752.79 billion, an increase of 37.02 per cent. The trend was the same for the states and local governments, as they received N586.58billion and N363.98billion in the third quarter as against N467.13billion and N280.42billion in the second quarter, respectively.
The report noted that the percentage increases between the two quarters for the two tiers of government were 25.57 per cent and 29.8 per cent.
It attributed the reason for the increases in FAAC disbursements to the three tiers of government in the third quarter to the positive developments in the oil sector occasioned by resurgent crude prices and increased production levels.
The NEITI quarterly review report based its analysis on data obtained from FAAC, the National Bureau of Statistics, Federal Ministry of Finance and the Budget Office of the Federation.
The report stated that the “upward trend in the FAAC disbursements to the three tiers of government are encouraging signs, which if sustained, will improve government expenditures, help to boost economic activities and move the country further away from recession.”
The report also stated that Nigeria’s revenue in the first half of 2017 was about 49 per cent lower than the budgeted figures.
It stated that while the government projected N5.368trillion revenue inflow in its 2017 fiscal framework for the first six months of the year, the actual inflow was N2.712trillion.
The government’s half-year projections were N2.67trillion for oil and N2.7trillion for non-oil revenues, but the actual revenue fell short of projections.
“Actual oil revenue was N1.587trillion, representing a shortfall of N1.079trillion, implying a 40.4 per cent underperformance. Non-oil revenue fared slightly worse, as only 41.6 per cent of the projected revenue was realised. Actual non-oil revenue totalled N1.125 trillion, indicating a shortfall of N1.575 trillion,” the report stated.
It pointed out that while the government projected that the non-oil sector would outperform the oil sector, the latter performed better by as much as 41 per cent in revenue generation, raking in N1.587 trillion as against N1.125 trillion for the non-oil sector.
Figures for the three tiers of government were no different. The Federal Government had hoped for N2.542 trillion revenue flow for the first half of the year, but the actual revenue was N1.497 trillion.
A breakdown of the inflows showed that the oil sector accounted for a larger part of the shortfall, with a 60 per cent drop, while the non-oil sector underperformed by 49 per cent.
“Budgeted half-year inflow from the oil sector was N1.061 trillion but actual oil inflow to the Federal Government was N414 billion. The Federal Government’s budget estimated half-year non-oil revenue inflow at N705 billion, but realised only N352 billion, indicating a 49 per cent shortfall,” the NEITI report stated.
FG sacks trade fair complex concessionaire
The Federal Government has sacked the concessionaire in charge of the Lagos International Trade Fair Complex over non-remittance of lease fees totalling N6 billion.
As stated in the termination letter issued by the National Council on Privatisation (NCP), the concessionaire, Aulic Nigeria Limited, had breached the agreement it signed in 2007 with the Federal Government.
According to the letter, the illegalities perpetrated over the years by the concessionaire vary from the non-remittance of the lease fees to the alleged eviction of the management board from the administrative building, among others.
The letter stated that the NCP terminated the concession agreement on August 23, but took some time to implement the decision due to logistics and security reasons.
The Inspector General of Police, Ibrahim Idris, had on November 20, issued a directive that the concessionaire be evicted from the complex and this was smoothly carried out.
According to the termination letter, the management board, headed by the Executive Director, Lagos International Trade Fair Complex, Mrs. Lucy Ajayi, was directed to take possession of the complex from the concessionaire.
Speaking at a press conference in Lagos on Tuesday, Ajayi said the board would now be able to perform its statutory function and move the complex to greater heights.
Ajayi, while addressing the shop owners, assured them that they were in an era of new change, stating that the management board would do its best to ensure that their interests were taken into consideration.
“I want to thank you all for your perseverance and endurance during those trying periods. I use this medium to assure you that all those injustices meted out to you in time past are over,” she said.
The Chairman, Stakeholders Forum, Lagos International Trade Fair Complex, Mr. Jude Okeke, described the takeover by the management board as a re-birth for the complex.
According to him, by design, the management board is supposed to be the landlord of the complex, overseeing all the activities within and around it.
“We have been in the wilderness for a long time and this has caused a lot of losses in financial, trade and other aspects,” Okeke stated.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

1 day ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

1 day ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

1 day ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor