Business

TAJBank to launch maiden private sector N100bn Sukuk offering

Published

2 years ago

June 6, 2022

By Joel Ajayi
TAJBank Limited, Nigeria’s leading non-interest bank, is set to launch Nigeria’s first private sector Sukuk offering under a N100 billion programme.

The bank’s Sukuk offering, which is currently undergoing regulatory approvals, is expected to be launched soon, marking a historic shift from government-dominated Sukuk offerings to a fully private sector-oriented offering in the Nigerian debt markets.

TAJBank is launching the instrument under a Mudaraba structure that will afford the non-interest lender opportunity to grow its capital base and by so doing, position it on a strong pedestal to finance large and long-term projects in Nigeria while unlocking investment opportunities in Africa’s largest economy.

According to the bank’s board, the Sukuk will be offered in tranches of N10 billion each as soon as regulatory approvals are secured.

Commenting on the corporate Sukuk offering during an interactive session with journalists in Abuja, the bank’s Managing Director/CEO; Mr. Hamid Joda, explained:

“TAJBank’s Sukuk offer being the first private sector Sukuk offer in Nigeria would open the door for several Sukuk offers by other private sector entities thereby stimulating investments in critical sectors of the economy leading to national development.

“Our aim is to raise the needed funds that would be invested in targeted high-impact sectors that spur job creation and enhance the standard of living of Nigerians”, Joda stressed.

In his remarks at the forum, the Executive Director, Mr. Sherif Idi, said: “There are many economic activities or projects that well-meaning Nigerians and companies are unable to fund. The Sukuk is a perfect way of aiding to finance these projects.

He further stated that the use of the Sukuk to fund these projects means that investors are incentivized to help the economy develop by creating and producing rather than consuming only.”

TAJBank started its operations through its Head Office in Abuja and a branch in Kano. Over the last two years, the Bank has accomplished several milestones, including expanding its branch network to 22 within its franchise area.

It would be recalled that apart from achieving break even within eight months of operation and remarkably growing its shareholders’ fund and returns on their investment within 12 months, TAJBank recently reported a 433% growth in PBT for the 2021 financial year and significant growth in gross revenue, balance sheet and other performance assessment indicators Attachments area

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Business

FAAC: FG, States, LGCc Share N 1,289 Trillion From a Gross Total Of N2.258 Trillion For Month of September

Published

21 hours ago

October 17, 2024

The Gleamer

Joel Ajayi
The Federation Account Allocation Committee (FAAC), at its October 2024 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.298 Trillion to the three tiers of government as Federation Allocation for the month of September, 2024 from a gross total of N2.298 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED and Augmentation of N150.000 billion, the Federal Government received N424.867 Billion, the States received N453.724 Billion, the Local Government Councils got N329.864Billion, while the Oil Producing States received N90.415 Billion as Derivation, (13% of Mineral Revenue).

The sum of N80.993 Billion was given for the cost of collection, while N878.946 Billion was allocated for Transfers Intervention and Refunds.

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 the month of September 2024, was N583.675 Billion as against N573.341 Billion distributed in the preceding month, resulting in a increase.

From that amount, the sum of N23.347 Billion was allocated for the cost of collection and the sum of N16.810 Billion given for Transfers, Intervention and Refunds.

The remaining sum of N543.518 Billion was distributed to the three tiers of government, of which the Federal Government got N81.258 Billion, the States received N271.759 Billion and Local Government Councils got N190.231 Billion.

Accordingly, the Gross Statutory Revenue of N1.043 Trillion received for the month was lower than the sum of N1.221 Trillion received in the previous month by N177.426 Billion. From the stated amount, the sum of N56.878 Billion was allocated for the cost of collection and a total sum of N862.136 Billion for Transfers, Intervention and Refunds.

The remaining balance of N124.718 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N43.037 Billion, States received N21.829 Billion, the sum of N16.829 Billion was allocated to LGCs and N43.021 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N19.213 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.767 Billion, States got N9.222 Billion, Local Government Councils received N6.456 Billion, while N0.768 Billion was allocated for Cost of Collection.

The Communique also disclosed the sum of N462.191 Billion from Exchange Difference, which was shared as follows: Federal Government received N218.515 Billion, States got N110.834 Billion, the sum of N85.448 Billion was allocated to Local Government Councils, N47.394 Billion was given for Derivation (13% of Mineral Revenue).

It further disclosed of the Augmentation of N150.000 Billion which was shared as follows:Federal Government received N70.020 Billion, the States got N40.080 Billion and the LGCs received N30.900 Billion.

Oil and Royalty, Excise Duty, Electronic Money Transfer (EMTL) and CET levies increased considerably. While Value Added Tax (VAT) and Import Duty increased marginally. Petroleum Profit Tax (PPT) and Company Income Tax (CIT) and others recorded significant decreases.

According to the Communique, the total revenue distributable for the current month of September 2024, was drawn from Statutory Revenue of N124.716 Billion, Value Added Tax (VAT) of N534.518 Billion, N18.445 Billion from Electronic Money Transfer Levy (EMTL), N462.191 Billion from Exchange Difference and Augmentation of N150.000 Billion, bringing the total distributable amount for the month to N1.298 Trillion.

The balance in the Excess Crude Account (ECA) as at October 2024 stands at $473.754.

In his opening remarks, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, restated the President Bola Ahmed Tinubu-led Administration’s commitment to implementing policies, programmes and initiatives that will enhance revenue generation with a view to enhancing the overall well-being of Nigerians in line with contemporary realities.

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