Business

FAAC MEETING: FG, STATES AND LGCs SHARE N1,152.756 TRILLION FROM A GROSS TOTAL OF N2,326.149 TRILLION FOR THE MONTH OF FEBRUARY, 2024

Published

12 months ago

March 22, 2024

The Federation Account Allocation Committee (FAAC), at its February 2024 meeting chaired by the Honourable Minister of Finance and Co-ordinating Minister of the Economy, Wale Edun, shared a total sum of N1,152.756 trillion to the three tiers of government as Federation Allocation for the month of February, 2024 from a gross total of N2,326.149 trillion.

In a statement Signed by Director, Press and Public Relations of FAAC Mohammed Manga in Abuja revealed that from the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N352.409 Billion, the States received N366.950 Billion, the Local Government Councils got N267.153 Billion, while the Oil Producing States received N166.244 Billion as Derivation, (13% of Mineral Revenue).

The sum of N66.456 Billion was given for the cost of collection, N856.937 Billion allocated for Transfers Intervention and Refunds, while the sum of N250.000 Million was saved.

The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for February 2024, was N460.487 Billion, which was an increase from the N420.733 Billion distributed in the preceding month, resulting in an increase of N39.755 Billion.

From that amount, the sum of N18.420 Billion was allocated for the cost of collection and the sum of N13.262 Billion given for Transfers, Intervention and Refunds. The remaining sum of N428.806 Billion was distributed to the three tiers of government, of which the Federal Government got N64.321 Billion, the States received N214.403 Billion, Local Government Councils got N150.082 Billion.

Accordingly, the Gross Statutory Revenue of N1,192.428 Billion received in the month was higher than the sum of N1,151.808 Billion received in the previous month of January 2024, N40.620 Billion. From that amount, the sum of N47.404 Billion was allocated for the cost of collection, a total sum of N843.675 billion for Transfers, Intervention and Refunds and a total of N200.000 Billion saved.

The remaining balance of N101.349 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N7.351Billion, States received N3.729 Billion, while the sum of N87.394 Billion was allocated to LGCs as Derivation (13% Mineral Revenue).

Also, the sum of N15.789 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.274 Billion, States got N7.578 Billion, Local Government Councils received N5.305 Billion, while N0.632 Billion was allocated for Cost of Collection.

The Communique also disclosed N657.444 Billion from Exchange Difference, which was shared as follows: Federal Government received N278.463 Billion, States got N141.240 Billion, while the sum of N108.891Billion was allocated to Local Government Councils, N78.850 Billion was given for Derivation (13% of Mineral Revenue) and the sum total of N50.000 Billion was saved.

Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import Duty, Excise Duty and Customs External Tarrif levies (CET) increased significantly, while Oil and Gas Royalties increased marginally.Electronic Money Transfer Levy (EMTL) and Companies Income Tax (CIT) recorded considerable decreases.

According to the Communique, the total revenue distributable for the current month of February 2024, was drawn from Statutory Revenue of N101.349 Billion, Value Added Tax (VAT) of N428.806 Billion, N15.157 Billion from Electronic Money Transfer Levy (EMTL), and N607.444 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,152.756 trillion.

The balance in the Excess Crude Account (ECA) as at March 2024 stands at $473,754.57.

In his opening remarks at the meeting, Wale Edun, the Honourable Minister of Finance and Co-ordinating Minister of the Economy, said in the fiscal side, there is a move to raise the forex trading.

He informed that President Bola Ahmed Tinubu led administration in its avowed determination to achieve and ensure rapid and sustained economic growth in the country has commenced the intervention programme which is a direct payment to about 15 -17 million poorest and vulnerable Nigerians, after carefully making sure that the system is fraud free, using the Biometric Registration and Digital Registering.

He explained that there is an increase in revenue, and *we are commending the revenue generating agencies for their hard work

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Business

TAJBank To Issue N20Bn Mudarabah Sukuk, Targets N100Bn Issuance

Published

15 hours ago

March 17, 2025

The Gleamer

Joel Ajayi

TAJBank, a leading non-Interest bank in Nigeria committed to providing innovative and customer-centric financial solutions, is finalizing arrangements on the raising the sum of N20 billion Mudarabah Sukuk bond to beef up its Additional Tier 1 capital with the aim of fueling its business expansion drive. The issuance is part of its N100 billion Sukuk programme.

The new investment initiative, which is coming after about two years following the issuance of the first-ever N10 billion Sukuk bond on the Nigerian Exchange in 2023, presents a unique opportunity for individuals and institutions to invest in an ethical instrument with a competitive 20.5% per annum return.

Specifically, the new Mudarabah Sukuk bond, is designed to offer a stable and ethical investment option, allows investors to participate in the bank’s profit-sharing ventures, and underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country.

According to the management of the bank, the Mudarabah Sukuk issuance terms and conditions, now undergoing final regulatory assessment and approval processes, is open to all investors, both individuals and corporates and the goal is to provide a reliable source of extra income, accessible from the comfort of your home.

Commenting on the current moves to raise the N20 billion Sukuk bond on the NGX during a virtual chat with journalists, the Founder/CEO of TAJBank, Mr Hamid Joda, said: “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.

“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the banker added.

The bank’s management advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the Sukuk and the listing process

It would be recalled that Joda had, at the beating of the Gong during the listing of the TAJBank’s maiden N10 billion Sukuk bond on the NGX in February 2023, which was over-subscribed by over 115%, assured investors that the bank’s board and management would ensure good returns on their investments.

He said: “As TAJBank gets the NGX’s endorsement today on its fund raising for operations, I want to assure all investors in the maiden Sukuk bond offer by our bank that the board and management will surpass their expectations in terms of return on their investment and other benefits.”

Investment analysts strongly believe that the N20 billion Mudarabah Sukuk provides investors with a secure and transparent avenue to grow their wealth while adhering to ethical guidelines.

For instance, they pointed out that the 20.5% annual return made it an attractive option for those seeking to diversify their investment portfolios and generate passive income.

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