FAAC: FG, States, LGs Share N906.955bn October Revenue

The Federation Account Allocation Committee (FAAC) has shared the total sum of N906.955 billion Federation Account Revenue to the Federal Government, States and Local Government Councils for the month of October 2023.  A breakdown of the amount according to a communique issued by the FAAC revealed that total distributable revenue comprises statutory revenue of N305.070 billion, Value Added Tax (VAT) of N 323.446 billion, Electronic Money Transfer Levy (EMTL) of N15.552 billion, Exchange Difference of N202.887 billion and Augmentation of N60.000 billion.   According to the communique, total revenue of N1,346.519 billion was available in the month of October 2023. Total deductions for cost of collection was N53.483 billion; total transfers, interventions and refunds was N386.081 billion.    Gross statutory revenue of N 660.090 billion was received for the month of October 2023, lower than the N1,014.953 trillion received in the month of September 2023 by N354.863 billion.   The gross revenue available from the Value Added Tax (VAT) was N347.343 billion, higher than the N303.550 billion available in the month of September 2023 by N43.793 billion.    Of the N906.955 billion, the Federal Government received N323.355 billion, State Governments got 307.717 billion and the Local Government Councils took home N225.209 billion.  The sum of N50.674 billion (13% of mineral revenue) was shared to the relevant States as derivation revenue.  From the N305.070 billion distributable statutory revenue, the Federal Government received N147.574 billion, the State Governments received N74.852 billion and the Local Government Councils received N57.707 billion. The sum of N24.937 billion (13% of mineral revenue) was shared to the relevant States as derivation revenue.  The Federal Government received N48.517 billion, the State Governments received N161.723 billion and the Local Government Councils received N113.206 billion from the N323.446 billion VAT revenue. The N15.552 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.333 billion, the State Governments received N7.776 billion and the Local Government Councils received N5.443 billion. The Federal Government received N93.323 billion from the N202.887 billion Exchange Difference revenue. The State Governments received N47.334 billion, and the Local Government Councils received N36.493 billion. The sum of N25.737 billion (13% of mineral revenue) went to the relevant States as derivation revenue.  The Augmentation of N60.000 billion was shared as follows: Federal Government received N31.608, the State Governments received N16.032 billion and the Local Government Councils received N 12.360 billion In the month under review, Import Duty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), CET Levies and Electronic Money Transfer Levy (EMTL) increased significantly while Excise Duties and Companies Income Tax (CIT) recorded considerable decreases. Oil and Gas Royalties decreased marginally.   

FBNHoldings Declares N270bn PBT In 9 Months

FBNHoldings Plc has reported gross earnings of N985.6 billion for the nine months financial year ended September 30, 2023. The amount represents an increase of 80.1 per cent compared with N547.2 billion achieved in the corresponding period of 2022. The group’s profit before tax rose to N270.3 billion from N105.5 billion in 2022, representing 156.3 per cent from N105.5 billion recorded the previous year while profit after tax grew by 159.2 per cent to N236.4 billion from N91.2 per cent posted in the preceding year. Analysis of the result showed that Interest income increased by 71.1 per cent to N633.8 billion against N370.4 billion recorded in the corresponding period of last year while net interest income went up 51.4 per cent to N377.7 billion from N249.5 billion in the preceding year. Non-interest income rose by 108.2 per cent to N326.90 billion against N157 billion in 2022. Commercial banking segment of the company within the period reported N922.2 billion growing by 79.8 per cent year on year from N512.9 billion achieved in the comparative period of last year. The bank’s profit before tax went up by 157 per cent to N248.5 billion from N96.4 billion while profit after tax stood at N221.1 billion against N85.7 billion in the preceding year, indicating 158.2 per cent growth year on year. Commenting on the financial result, the Group Managing Director, FBNHoldings, Nnamdi Okonkwo said “over the period we have delivered a strong performance and growth enabled by focused execution of our strategic plan. Gross earnings were up by 80.1 per cent while our profit before tax grew by 156 per cent year on year. At the same time, our credit risk portfolio remains healthy with an NPL ratio of 46 per cent and a coverage of 85.4 per cent. Cost of income ratio improved to N 50 per cent from 65 per cent in 2022 on the back of enhanced revenue generation as well as effective cost containment initiatives. “Despite the high inflationary environment we remain committed to leveraging technology, automation and our brand strength to enhance our value proposition, increase revenues and improve the overall operational efficiency of the group. We are confident in our continuous progress in generating sustainable value for our shareholders.” Also the Chief executive officer First Bank of Nigeria Limited, Commercial banking group) Dr Adesola Adeduntun said “in the nine months ended September 30, 2023, First Bank group reported impressive financial results, reflecting sustained growth and resilience of the franchise. “Our gross earnings at the end of the quarter were N922.2 billion, making a remarkable increase of 79.8 per cent y-o-y. The substantial increase of 49.3 per cent yoy in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6 per cent y-o-y in non-interest income underscores our success in diversifying the bank’s revenue streams and providing value added services to our customer. “Growth of 157.9 per cent and 158.2 per cent y-o- y in the profit before tax and profit after tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders. “This performance is a testament to the dedication and hard work of our entire team, and it reaffirms First Bank’s position as one of the leading players in the commercial banking industry. As we continue to face dynamic market conditions, our agility, risk management capabilities and strategic approach will remain pivotal in sustaining this impressive growth trajectory. Looking ahead, we are committed to sustaining this momentum exploring new growth opportunities through innovation and upholding our core value of customer centricity.”

Nigeria’s eCommerce Revenue To Hit $6.710m By December

Revenue in Nigeria’s eCommerce market is projected to reach $6,710.00 million by December 2023, a new report by Statista has said. In its eCommerce in Nigeria report, the data company stated that revenue is expected to show an annual growth rate (CAGR 2023-2027) of 10.79 per cent, resulting in a projected market volume of $10,110.00 million by 2027. With a projected market volume of $1.319 billion in 2023, the report noted that most revenue will be generated in China. “In the eCommerce market, the number of users is expected to amount to 143.9m users by 2027. “User penetration will be 45.3% in 2023 and is expected to hit 58.6% by 2027. “The average revenue per user (ARPU) is expected to amount to $66.23, the report said. 

Nigeria Rakes In N5.2trn Revenue In 6 Months – RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed that the total sum of N5,244 trillion accrued into the Federation Account in the first 6 months of 2023. A press statement signed by the RMAFC Chairman, Mr. Mohammed Bello Shehu, and made available to journalists on Wednesday in Abuja, said the amount was captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.  According to Shehu, out of the total gross revenue inflows into the Federation Account, the sum of N627.301 billion was NNPCL JV Petroleum Profit Tax (PPT) due, captured and recorded by the FIRS, but utilized by the NNPCL for other FGN obligations. From the reports according to the statement, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N823,512,065,893.15 while the Federal Inland Revenue Service (FIRS) made a gross collection of N3,655,894,989,129.28 but remitted N3,028,593,066,702.93 retaining the difference as cost of collection.  The statement further disclosed that the Nigeria Customs Service (NCS) on its part remitted the sumN764,630,581,539.17. It however, added that the Nigerian National Petroleum Company Limited (NNPCL) did not remit any amount into the Federation Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021 as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided. Furthermore, the statement adds that the sum of N1,490,946,180,918.52 was realized as Value Added Tax (VAT) while the sum of N83,024,395,855.89 was realized from the Electronic Money Transfer Levy (EMTL) from which the sum of N3,320,975,834.23. Additionally, the FIRS received the sum of N82,031,796,937.01 and N3,320,975,834.23 as cost of collection on PPT/CIT and EMTL collections respectively in the period. The report revealed that on VAT, the FIRS/NCS together received the sum of N59, 593,164,213.83 as cost of collection within the period under review. Similarly, the report indicates that the sum of N16, 680,990,990.93 was realized from the solid minerals sector. The RMAFC Chair further revealed that total collections from VAT netted the sum of N1,387,328,862,898.16 whichwas shared to the 3-tiers of government in accordance with the approved VAT sharing formula.On the statutory allocations to the three tiers of government, Mr. Bello disclosed that the net sum of N3,069,594,889,669.74 (Three trillion, sixty-nine billion, five hundred and ninety-four million, eight hundred and eighty-nine thousand, six hundred and sixty-nine Naira, seventy four Kobowas shared to the 3-tiers of government in the period January to June, 2023. In the area of payment of cost of collection to Revenue Generating Agencies (RGAs) from the Federation Account component, the statement reveals that the NCS received the sum of N53,524,140,707.73 within the period under review. In the same vein, the statement adds that the sum of N48,105,698,218.35 was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). “This money was collected by NUPRC as penalty on gas flared. Revenues on gas flared penalty used to be Federation Account revenues before the PIA, 2021 which provided that such revenues should be paid 100% to the NMDPRA”. In a similar development, the RMAFC Chair described the statutory deductions which constituted 32.27% of the total gross inflow into the Federation Account in the six-month period as superfluous and constitute a drain on the Federation Account.

Rail transport revenue surges to N1.1bn in Q2 2023 –NBS

The National Bureau of Statistics (NBS) has said that its revenue for the second quarter of 2023 increased to N1.1 billion from the sum of N768 million collected from rail passengers in the first quarter of this year. In its Transportation Data (Q2 2023)’ report published on its website Friday, the statistics bureau the figure represents a 69.7 per cent increase over the Q1 figure. On a year-on-year basis, the amount represents a 83 per cent increase over the sum of N598.74 million generated in the corresponding quarter of 2022. The NBS disclosed that in the quarter under review, a total of N188.03 million was generated from the transportation of goods and cargo by rail, amounting to an increase of 105.04 per cent when compared to the N91.70 million revenue in Q2 2022. Furthermore, the Bureau disclosed that miscellaneous income from rail transport in Q2 2023 amounted to N18.74 million, reflecting a decline of 62.31% from the N49.73 million reported in Q2 2022. On the number of passengers that travelled by rail during the quarter, the statistics agency reported a significant increase with a total of 474,117 passengers, which also indicated 12.25% increase compared to the 422,393 passengers reported in the same quarter of 2022. However, the report showed that the volume of goods transported by rail in Q2 this year reduced to 56,029 tons, from the 59,996 tons recorded in the first quarter of 2023 but that when compared to the corresponding quarter of 2022, the volume of cargo increased from 31,197 tons.

DisCos raked in N247.33bn revenue in Q1 2023 -NBS

Data from the National Bureau of Statistics (NBS) has revealed that there was a slight increase in the number of total number of customers in the second quarter of 2023 with the number moving to 11.47 million from 11.27 million in the first quarter of 2023, indicting a 1.84 per cent increase. In its Nigeria Electricity Report Q2 2023: Energy Billed, Revenue Generated and Customers By DISCOS, the bureau stated that on a year-on-year basis, customer numbers in Q2 2023 rose by 6.17% from 10.81 million reported in Q2 2022. Similarly, metered customers stood at 5.47 million in Q2 2023, indicating a growth of 3.10% from 5.31 million recorded in the preceding quarter. “On a year-on-year basis, this grew by 10.40% from the figure reported in Q2 2022 which was 4.96 million. In addition, estimated customers during the quarter were 6.00 million, higher by 0.72% from 5.96 million in Q1 2023. “On a year-on-year basis, estimated customers increased by 2.58% in Q2 2023 from 5.85 million in Q2 2022,” it said. The coordinating agency for all statistics in Nigeria added that revenue collected by the DISCOs in Q2 was N263.08 billion from N247.33 billion in Q1 2023. “On a year-on-year basis, revenue generated in the reference period rose by 39.63% from N188.41 billion recorded in Q2 2022. “Electricity supply was 5,909.83 (Gwh) in Q2 2023 from 5,851.87 (Gwh) in the previous quarter. However, on a year-on-year basis, electricity supply increased by 13.06% compared to 5,226.97 (Gwh) reported in Q2 2022,” it said.  

Anambra targets N160bn revenue from palm oil, coconut

The Anambra Government says it hopes to rake in more than N160 billion yearly from ongoing palm oil and coconut investment. Dr Onyekachi Ibezim, Deputy Governor of the state made this known while inaugurating the 2023 Farming Season at Alex Ekwueme Square Awka. Ibezim who represented the governor at the event said the anticipated revenue was from one million palm seedlings and one million coconut being imported from Malaysia. “We started importation of one million palm oil seedlings and one million coconut from Malaysia last year, these species have three years maturity period. “When this investment fully matures, the off-takers will be processing the fruits of these plants and over N160 billion will be yearly income from this window”, he said. Ibezim also said there is a plan for irrigation of 10,000 hectares of land for rice farming at Ifite Ogwari Community, Ayamelum Local Government Area for rice cultivation. He said that agriculture has the potential of not only creating wealth but employment opportunities for thousands of people. Ibezim said it was for the abundance of opportunities in the sector that the government listed it among the priority area of investment in the 50 years development plan of the state. He called on farmers to show commitment to the sector as the government will always support them in their activities. Also speaking, Dr Foster Ihejiofor, the Commissioner for Agriculture said the state is currently promoting the “Biological Farming” practice which according to him is nature’s sustainability solution. “As we all know farming is not about producing food; it is about preserving our environment and ensuring the sustainability of our food system. “Biological farming aka, zero budget, carbon farming or regen-Ag launched in 2022 by Gov. Chukwuma Soludo is a sustainable agricultural system”, he said. Ihejiofor urged farmers to embrace the new farming system, saying ”Biological farming is not just environmentally friendly, it is also economically beneficial to farmers as it reduces the cost of inputs while improving soil health, plants health, nutrients among others. The event was attended by farmers from the 21 Local Government Areas and tertiary institutions within the state.