Connect with us

Business

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

Published

on

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.

Print Friendly, PDF & Email
Continue Reading

Business

NNPC, IOCs Sign Pact To Generate $500bn Revenue …To Produce 10bn Barrels Oil From Five OMLs

Published

on

The Nigerian National Petroleum Company (NNPC) Limited and International Oil Companies (IOCs) operating in Nigeria, on Friday, signed various agreements that would ensure the production of about 10 billion barrels of crude oil and generate over $500bn revenue to all parties involved.
NNPC officials and their counterparts from the IOCs including Shell, Chevron, Texaco, Sinopec, Sapetro, Esso Exploration and Production Nigeria Limited, among others, renewed their agreements in five Oil Mining Leases (OMLs) that included OMLs 128, 130,132, 133, and 138.
The agreements renewed by the parties were Production Sharing Contracts (PSC) as well as Dispute Resolution Agreements (DRA) among others, at a signing ceremony held at the Abuja headquarters of NNPC.
Speaking at the event, the Group General Manager, National Petroleum Investment Management Services, Bala Wunti, said, “Cumulatively we hope to produce and monetise over 10 billion barrels of oil with these signatures that we had today.
“And this by no means will give significant revenue for all the parties. We expect over $500bn of revenue for all the stakeholders.”
Earlier, the Group Chief Executive Officer, NNPC, Mele Kyari, had explained that the Petroleum Industry Act 2021 gave NNPC the legal backing to renegotiate all its existing PSCs in conformance to the provisions of the new Act within a one-year period.
The PIA became law on August 16, 2021 after it was signed into law the same day by the President, Muhammadu Buhari.
The PIA in Section 311(2) stipulates that new PSC agreements under new heads of terms will be signed between NNPC Ltd as concessionaire and its contracting parties within one year of signing the PIA into law, giving a deadline of August 15, 2022.
Kyari noted that this provision paved the way for the resolution of lingering disputes which created investment uncertainty and stifled new investments in the nation’s deep offshore assets.
To achieve this, he said NNPC leveraged the near end-term of the PSCs and the parties’ interest to renew the PSCs as a negotiation currency in bringing the contractors to work towards trading the past for the future.
“These renewed PSCs would provide several benefits such as improved long-term relationships with contractors, elimination of contractual ambiguities especially in relation to gas terms, enablement of early contract renewal, among others,” he stated.
Kyari added, “The signing of the new PSCs is a key milestone achievement by NNPC Ltd which would ultimately unlock opportunities within the Nigeria upstream sector.
“The execution of the PSCs will deepen investment and development of Nigeria’s rich petroleum resources and ensure that the trifold mandate of the NNPC Ltd to ensure energy availability, sustainability, and accessibility is achieved.
“Ultimately, the new PSCs will provide an inflow of Foreign Direct Investment, expanded access to affordable energy, job creation and socio-economic development.”

 

Print Friendly, PDF & Email
Continue Reading

Business

Nigeria’s Crude Production Plunges By Over 2m Barrels 

Published

on

The Organisation of Petroleum Exporting Countries (OPEC) has said Nigeria’s crude oil production plunged by 2.3 million barrels in July 2022 when compared to what was produced in the preceding month of June.
Data obtained from the latest Monthly Oil Market Report for August 2022, of OPEC, revealed  that crude oil production figures, based on direct communication,  indicated that Nigeria’s output dropped by an average of 74,000 barrels per day in July.
It indicated that for the 31 days in July, the country lost about 2.3 million barrels of crude oil, whereas the average cost of Brent crude, the global benchmark for oil, during the month under review was $105.12/barrel.
Going by the 2.3 million barrels loss in July this year, it means Nigeria’s oil earnings fell by about $241.1m or N101.13bn (at the official exchange rate of N419.37/$) in the month under review.
The data from OPEC also showed that Nigeria’s oil production in June 2022 was 1.158 million barrels per day, but this dropped to 1.084 million barrels per day in July.
The country had produced 1.024 million barrels per day in May this year, according to figures released by the OPEC on Friday.
The Federal Government, operators and experts have consistently fingered crude oil theft in the Niger Delta as the major reason for Nigeria’s poor output and its continued failure to meet the monthly oil production quota approved by OPEC.
The downstream sector has continued to be weighed down by the pricing regimes and the regulatory environments which have continued to dim the growth prospects in the sector.
OPEC has also stated that crude oil prices dipped in July, as against their costs in June, adding that crude in OPEC Reference Basket fell by $9.17 or 7.8 per cent month-on-month in July, to the average of $108.55/barrel.
“Oil futures prices remained highly volatile in July, amid a sharp drop in liquidity. The ICE Brent front month declined $12.38 or 10.5 per cent in July to average $105.12/barrel and NYMEX WTI declined by $14.96 or 13.1 per cent to average $99.38/barrel,” the international oil cartel stated.

By: Corlins Walter

Print Friendly, PDF & Email
Continue Reading

Business

PH Airport Passengers Kick As Touts Increase

Published

on

Business activities at the Port Harcourt International Airport, Omagwa, seem to be taking a new twist, particularly at the arrival terminal area, as touts and touting activities have increased tremendously at that arrival arena.
Many arrival passengers have not been having it easy with the influx of these new touts, who claim to be hustling at the airport for their daily bread.
Some of the passengers not only argue with them, but brazenly argue or shout at them for forcing themselves on them (passengers).
The Tide had severally observed that the number of these hustlers has increased in recent times and their modus of operation is to approach arrival passenger, whether known or unknown to ask for assistance.
“Anything for the boys? Your boys are here-o”;  or “welcome-ooo, your boys are hungry, we are loyal-ooo”, are usually their opening gambit.
Several times, fracases had broken forth among them on how to share money given to them by some benevolent arrival persons with large heart, which usually constitute public nuisance.
Nevertheless, few of them have engaged themselves in helping passengers to load or offload luggages, and were being appreciated by some passengers, while others shun them, because they did not engage them.
Several questions have been asked by The Tide, on why this situation seems to be persisting, as the airport management appears to be indifferent to the issue, even when some passengers had been complaining.
Even the security operatives, particularly the airport security personnel, appear to be overwhelmed by the situation.
Meanwhile, a senior security officer at airport, who The Tide interacted with on the matter, said the unemployment situation had aggravated the increase in touting at the airport.
He expressed regret that many of the youths are unemployed, and that hustling at the airport, will be better  than taking arms and rubbing people, noting that it was for that reason they are not coming hard on their touting activities.

By: Corlins Walter

Print Friendly, PDF & Email
Continue Reading

Trending