₦airaland Forum

By Adedapo Adesanya

Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, has rated the performance of the Nigerian Stock Exchange (NSE) low, saying it is not optimistically feasible and under-performing.

Mrs Ahmed said this during the 2020 National Budget defence on Thursday, October 24, before the Senate Committee on Finance at the National Assembly at the nation’s capital, Abuja.

According to her, both the nation’s money and capital markets have not been in their best, with the latter not been able to provide a vibrant mainstay for the weak Nigerian economy.

“The [Nigerian] stock market, to my mind, personally, is shallow and we are looking at how to deepen it,” Mrs Ahmed told the Senate Committee during the budget defence.

She made this comment while answering a question asked by Senator Kasim Shettima as to why the capital market didn’t step up to absorb the effects of Nigeria going into a recession in 2016.

The Finance minister also said that a larger percentage of investments in the nation’s capital market are done by foreign investors which meant that these expatriate investors holding a higher share of the market was not healthy for the country.

While looking at ways to turn around the NSE’s under-performance, Mrs Ahmed recommended an amendment to the Pension Act to enable government invest the enormous pension funds in the markets as well as in the development of infrastructural facilities.

She added that federal government was working together with capital markets operators to mobilise domestic investors in the capital market.

Business Post reports that in late 2018, President Muhammadu Buhari signed into law the bill to demutualise the stock exchange.

The Ministry of Finance, Budget and National Planning proposed a total of N3.8 billion for its 2020 operations.

https://businesspost.ng/economy/nigerian-stock-market-lacks-depth-finance-minister/

Nigerian Stock Market Lacks Depth—Finance Minister
https://businesspost.ng/economy/nigerian-stock-market-lacks-depth-finance-minister/

Naira Appreciates at I&E Despite 383% Rise in Demand for Dollar
https://businesspost.ng/economy/naira-appreciates-at-ie-despite-383-rise-in-demand-for-dollar/

Crude Oil Sustains Gains to Fourth Day on Friday
https://businesspost.ng/economy/crude-oil-sustains-gains-to-fourth-day-on-friday/

NASD Posts Strong Gains as NEDP Share Price Rises Third Time
https://businesspost.ng/economy/nasd-posts-strong-gains-as-nedp-share-price-rises-third-time/

By Samuel Ighoyota Akporhiunuvwiyo

There is a growing population of betting companies in Nigeria. This is a result of increase in the number of betters in Nigeria. At a time in the country, it was only just pool betting, but as of today, we have seen a rise in the number of betting companies; the likes of Nairabets, Bet9ja, Accessbet, Blackbet, etc come to mind.

It is a common belief by betters that betting is a good way of raising money or getting additional income to solve their financial needs. To some, this is correct, while to others, this is far from the truth.
What is Sports Betting

According to Wikipedia, sports betting is the activity of predicting results of sporting activities and placing a wager on the outcome. The frequency of bookmaking varies by culture, with the vast majority of bets being placed on football also known as soccer, American football, basketball, baseball, hockey, track cycling, auto racing, mixed martial arts, and boxing at both the amateur and professional levels.

Sports betting can also extend to non-athletic events, such as reality shows and political elections, and non-human contests such as horse racing, greyhound racing, and illegal, underground cockfighting. It is not uncommon for sports betting websites to offer wagers for entertainment events such as the Grammy Awards, the Oscars, and the Emmy Awards.

What is Stock Trading

Stock trading is the buying and selling of shares of companies on a regulated platform like the stock exchange.

At the stock market, owners of a certain company’s equities look for willing buyers, with the different bodies earning certain percentages as commission for the transaction. These shares are traded for various reasons, depending on the prevailing conditions when the trading took place.

For example, when in need of funds to sort out an urgent obligation, you could place an order to exchange your shares for cash and this could come at a loss to the seller. In another way, an information like the recent from Dangote Flour and Forte Oil could trigger the demand for a company stock, which will result in the price going up. For willing seller who bought at a relatively cheap price, it could be time to take profit.
Similarities Between Sports Betting and Stock Trading

Sports betting and Stock Trading exhibit some level of similarities and one of them is the Skill Based Gambling

In as much as there is a slight difference between stock trading and sports betting, they both carry a potential for gains and losses. This means they both manage some level of risk, gambling, and predictions. They both require a level of research too, although, methodology differs.

Comparative Returns

They both exhibit potentials of a favourable return on investment, although, sports betting typically involves several losses followed by a big return of 100 percent or more or less. Whether this covers the cost of all lost bets depends on a specific situation, but average performance produces approximately a 5 percent loss over time. Returns also depend on the risk appetite of the player.
Differences Between Sports Betting and Stock Trading

One of the major differences between the two forms of ‘investment’ is that while stock trading is normally carried out during working days, sports betting can extend to non-working days, including public holidays.

Another difference is about legality. While stock trading is legal in almost every country and backed by law, the same is not with sports betting, which is illegal in some countries.
A Rigged Game

One major difference between sports betting and the stock trading is the way the professionals make money. Publicly traded companies make money by doing business. As they get wealthy, their investors also reap benefits in form of dividend payment usually paid at the end of a financial year. Some companies also pay what is called interim dividend, which is paid before the end of the fiscal year.

But for sports bookies, they make money when people lose bets. They set the odds specifically to make people lose more money overall than they win. This is one of the key reasons only one of these practices is legal throughout the United States, Although, betters can avoid or reduce this by lowering their risk appetite. The higher the odd the riskier the bet.

Another big difference between sports betting and stock trading is that the former is highly addictive. It is often said that there is ‘an evil spirit’ attached to sports betting, which make betters sell their belongings to place bets with the hope of winning big.

Having highlighted the similarities and differences between sports betting and stock trading, it is advisable for the growing population of Nigeria to explore the opportunities in trading in the Nigerian stock market because it is less risky than sports betting and is also more regulated.

https://businesspost.ng/economy/stock-trading-versus-sports-betting-the-differences-and-similarities/

Stock Trading Versus Sports Betting; The Differences and Similarities
https://businesspost.ng/economy/stock-trading-versus-sports-betting-the-differences-and-similarities/

BUA Sugar Test-Runs Port Harcourt Factory Equipment
https://businesspost.ng/economy/bua-sugar-test-runs-port-harcourt-factory-equipment/

Balarabe Retires as Fidelity Bank Deputy Managing Director
https://businesspost.ng/jobs/balarabe-retires-as-fidelity-bank-deputy-managing-director/

T-Bills Yields Drop 0.40% as CBN Mops up N321bn
https://businesspost.ng/economy/t-bills-yields-drop-0-40-as-cbn-mops-up-n321bn/

USSD Transactions: Banks Forced us to Charge Customers—MTN Nigeria
https://businesspost.ng/technology/ussd-transactions-banks-forced-us-to-charge-customers-mtn-nigeria/

Nigeria Climbs to 131 on Ease of Doing Business Ranking
https://businesspost.ng/economy/nigeria-climbs-to-131-on-ease-of-doing-business-ranking/

Investor Secures $629m Loan to Complete Lekki Seaport 2022
https://businesspost.ng/economy/investor-grabs-629m-loan-to-deliver-lekki-seaport-2022/

Only Three States Can Survive Without Federal Allocation—BudgIT
https://businesspost.ng/economy/only-three-states-can-survive-without-federal-allocation-budgit/

Nigeria’s New Ease of Doing Business Ranking Delights Buhari
https://businesspost.ng/general/nigerias-new-ease-of-doing-business-ranking-delights-buhari/

By Dipo Olowookere

Leading GSM network provider, MTN Nigeria Communications Plc, has said it was never its intention to charge banking customers for financial transactions carried out through Unstructured Supplementary Service Data (USSD) on its lines every 20 seconds.

Last Sunday, the company came under heavy attacks on social media as a result of text messages it sent out to its subscribers, informing them that the use of USSD for banking operations would attract N4 per 20 seconds from Monday, October 21, 2019.

The federal government, through the Ministry of Communications, after the criticisms, directed MTN Nigeria to suspend the proposed collection of a fee for USSD.

In a statement issued on Thursday, MTN Nigeria said it in fact urged the banks not to pass the bill on its customers, but should maintain the previous corporate billing plan.

MTN Nigeria said it resisted the calls for end-user billing, emphasising that it only “relented after exhausting avenues of engagement with the banks in pursuit of a model that enabled a single charge.”

According to the company, “We believe separate charges by the banks and telecoms companies are an unnecessary burden on the consumer especially the target group that the National Financial Inclusion Strategy is aimed at.”

It noted that though the charges have been suspended, it looks forward to collaborating with the financial institutions and other stakeholders and would be glad to implement the decisions approved by regulators.

Below is the full statement from MTN Nigeria

We at MTN Nigeria Communications Plc (MTN Nigeria) approach every day with one primary objective – finding ways to make our customers lives a little easier; which is why we will focus on what really matters, our customers.

They are the reason we made transparency and simplicity central to the recent drawn-out engagements with the banks over USSD access charges and how they should be applied.

Following consultation with industry stakeholders, customer feedback and media reports related to the message notifying our customers of upcoming changes in our charging model for access to banking services via the USSD channel, we wish to confirm that the new charging model has not gone into effect.

The situation has made it necessary to restate that MTN Nigeria, in line with our company policy will always be transparent in our dealings with customers, the industry and relevant regulatory bodies. The SMS notification to our customers is reflective of this commitment and was sent after formal requests received from individual banks as well as the body of Bank CEOs to implement end-user billing – a billing methodology where the customer is directly charged USSD access fees irrespective of the service charges that the bank may subsequently apply to their bank account.

It should be noted that the banks had up-till now been on a corporate billing plan — where a corporate client, the provider of the service that is accessed through the USSD channel (in this case the bank), pays the access fees at a wholesale price.

We believe the costs associated with USSD banking services should be charged to the consumer only once – as with other USSD based services we provide, which we believe has been adequately provisioned for within existing Central Bank of Nigeria (CBN) guidelines.

It is in fact in line with the National Financial Inclusion Strategy of the Federal Government that we resisted the calls for end-user billing. We relented only after exhausting avenues of engagement with the banks in pursuit of a model that enabled a single charge. We believe separate charges by the banks and telecoms companies are an unnecessary burden on the consumer especially the target group that the National Financial Inclusion Strategy is aimed at.

With this in mind, it is imperative for all parties to approach the table and engage constructively towards a solution, putting the consumer at the fore of all decisions.

The banks have been and still are our esteemed customers and valued partners. We look forward to collaborating with them and other stakeholders and will be glad to implement the decisions approved by our Regulators.

https://businesspost.ng/technology/ussd-transactions-banks-forced-us-to-charge-customers-mtn-nigeria/

Interswitch Issues N23bn 7-Year Bonds at 15%, Plans NSE Listing
https://businesspost.ng/technology/interswitch-issues-n23bn-7-year-bonds-at-15-plans-nse-listing/

I&E: Naira Trades at $362.12/$ on 65% Rise in Turnover
https://businesspost.ng/economy/ie-naira-trades-at-362-12-on-65-rise-in-turnover/

Decline in US Crude Supplies Triggers Hike in Oil Prices as Brent Hits $61
https://businesspost.ng/economy/decline-in-us-crude-supplies-triggers-hike-in-oil-prices-as-brent-hits-61/

NDEP Lifts NASD OTC Market by 0.10% to Halt Losing Streak
https://businesspost.ng/economy/ndep-lifts-nasd-otc-market-by-0-10-to-halt-losing-streak/

Treasury Bills Yields Jump to 13.13% Wednesday
https://businesspost.ng/economy/treasury-bills-yields-jump-to-13-13-wednesday/

PHOTO NEWS: Heritage Bank MD/CEO Attends Russian-African Summit
https://businesspost.ng/banking/photo-news-heritage-bank-md-ceo-attends-russian-african-summit/

FMDQ to Attract Low Carbon, Climate Resilient Investments
https://businesspost.ng/economy/fmdq-to-attract-low-carbon-climate-resilient-investments/

Treasury Bills Yields Jump to 13.13% Wednesday
https://businesspost.ng/economy/treasury-bills-yields-jump-to-13-13-wednesday/

Drop in Local Sales Shrinks Okomu Oil's Q3 Turnover, Profit
https://businesspost.ng/economy/drop-in-local-sales-shrinks-okomu-oils-q3-turnover-profit/

Former Minister Leaves Board of UACN Property
https://businesspost.ng/jobs/former-minister-leaves-board-of-uacn-property/

Nigerian Consumers Expect Rise in Inflation, Naira—CBN Survey
https://businesspost.ng/economy/nigerian-consumers-expect-rise-in-inflation-naira-cbn-survey/

Zenith Bank Q3 Earnings Rise to N491bn, EPS Grows 4.8%
https://businesspost.ng/banking/zenith-bank-q3-earnings-rise-to-n491bn-eps-grows-4-8/

UBA on Track to Meet FY2019 Target as Q3 Earnings Hit N428bn
**Credit Expansion, Others Buoy Non-Interest Income
https://businesspost.ng/banking/uba-on-track-to-meet-fy2019-target-as-q3-earnings-hit-n428bn/

CSCS Tops Losers’ Chart as NASD Exchange Extends Losses
https://businesspost.ng/economy/cscs-tops-losers-chart-as-nasd-exchange-extends-losses/

SEC in Talks With Foreign Firms on Possible NSE Listing
https://businesspost.ng/economy/sec-in-talks-with-nnpc-foreign-firms-on-possible-nse-listing/

Naira Depreciates at Interbank, Investors Segments Tuesday
https://businesspost.ng/economy/naira-depreciates-at-interbank-investors-segments-tuesday/

Oil Nears $60 Tuesday as OPEC Seeks Deeper Output Cuts
https://businesspost.ng/economy/oil-nears-60-tuesday-as-opec-seeks-deeper-output-cuts/

Makers of Alomo Bitters Lament Over Loss of $2m to Border Closure
https://businesspost.ng/economy/makers-of-alomo-bitters-lament-over-loss-of-2m-to-border-closure/

Investors Lose N24.3bn at Stock Market Tuesday
https://businesspost.ng/economy/investors-lose-n11-8bn-amid-mop-up-of-banking-stocks/

Treasury Bills Yields Rise 0.11% to 12.67% Tuesday
https://businesspost.ng/economy/treasury-bills-yields-rise-0-11-to-12-67-tuesday/

Air Liquide Plans N2.07bn Rights Issue
https://businesspost.ng/economy/air-liquide-plans-n2-07bn-rights-issue/

NSE Lists 30 Million Units of Union Bank Bonds
https://businesspost.ng/banking/nse-lists-30-million-units-of-union-bank-bonds/

Makers of Indomie Noodles Secure $1bn Loan to Build Port in Lagos
https://businesspost.ng/economy/makers-of-indomie-noodles-secure-1bn-loan-to-build-port-in-lagos/

Treasury Bills Yields Rise 0.11% to 12.67% Tuesday
https://businesspost.ng/economy/treasury-bills-yields-rise-0-11-to-12-67-tuesday/

By Adedapo Adesanya

The recent directive by the Nigerian authorities prohibiting the importation and exportation of goods through the nation’s land borders has continued to take its toll on some West African nations, which depend solely on the huge Nigerian market.

Since the land borders were closed, many of them, especially Benin Republic, have made several efforts to get the ‘doors’ opened again, but Nigeria has remained adamant, insisting that things must be put in place first to stop making Nigeria being a dumping ground for smuggled goods through these neighbouring countries.

Recently, Ghana called on Nigeria to reopen the borders because goods from Nigeria were allowed into their country without any restriction and that such gesture should be extended to goods from their country.

Not too long ago, Kasapreko Company Limited, makers of the popular Alomo Bitters, largely consumed by Nigerians, lamented about the huge loss it has made because of the decision of the Nigerian government to shut its borders.

Head of Kasapreko’s International Business Development, Mr Francis Holly Adzah, informed a Ghanaian news outlet, Joy Business, in an interview, that the firm has lost over $2 million in revenue since President Muhammadu Buhari approved this directive to close the country’s borders.

The company, which brings in the product into the country by land, was only able to bring in three trucks of the alcoholic beverage before the policy was implemented and had no way to meet its demand as supply has since been exhausted.

“We managed to send in three trucks of products to the Nigerian market moments before the border was closed,” Mr Adzah said.

It was discovered that four other trucks loaded with the company’s products, one at the border and three others at the premises of the manufacturing company, have been since been left grounded without finding their way into Nigeria.

“In September, we lost $1 million to the closure. October is almost ended and our checks show a loss of another million dollars. The situation is getting out of hand and very serious.” he further said.

To make up for these losses, Kasapreko said it was expanding into other African countries like Ivory Coast, Senegal, Togo, Benin and even as far as European markets.

Business Post had reported that the Ghanaian foreign and regional integration minister had noted that Ghanaian traders were recording losses following the decision of the FG and called on the curbing of the arrangement.

However, the closure of the Nigerian border had not put a stop to smuggling activities as promised due to the lax security as banned goods ranging from rice to second hand clothes continue to find themselves in Nigeria.

It is important to note that Nigeria only closed its land borders. Restrictions were not placed on the importation and exportation of goods through the ports or the air.

https://businesspost.ng/economy/makers-of-alomo-bitters-lament-over-loss-of-2m-to-border-closure/

CBN Holds Emergency OMO Auction, Declares ‘No Sale’ for 91-Day Bill
https://businesspost.ng/economy/cbn-holds-emergency-omo-auction-declares-no-sale-for-91-day-bill/

Nigeria’s Revenue to GDP Ratio Hits 8%, Targets 15% 2023
https://businesspost.ng/economy/nigerias-revenue-to-gdp-ratio-hits-8-targets-15-2023/

LCFE Picks Ecobank for Seamless Trade Settlement Across Africa
https://businesspost.ng/economy/lcfe-picks-ecobank-for-seamless-trade-settlement-across-africa/

Stanbic IBTC Honours Employees at Special Event
https://businesspost.ng/jobs/stanbic-ibtc-honours-employees-at-special-event/

Edo Vows to Flush Out Thugs to Attract Investors
https://businesspost.ng/economy/edo-vows-to-flush-out-thugs-to-attract-investors/

CBN Injects $325.5m into Retail Market SMIS
https://businesspost.ng/economy/cbn-injects-325-5m-into-retail-market-smis/

Oil Prices Fall After Earlier Rise Friday on Economic Slowdown in China
https://businesspost.ng/economy/oil-prices-fall-after-earlier-rise-friday-on-economic-slowdown-in-china/

NASD OTC Closes Week With Key Parameters in Red
https://businesspost.ng/economy/nasd-otc-closes-week-with-key-parameters-in-red/

Naira Weakens Against Euro, Sterling at Parallel Market Friday
https://businesspost.ng/economy/naira-weakens-against-euro-sterling-at-parallel-market-friday/

By Dipo Olowookere

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has said at the moment, the revenue to Gross Domestic Product (GDP) of Nigeria stands at 8 percent, promising to increase this ratio to 15 percent by the end of the present administration of President Muhammadu Buhari in 2023.

Mrs Ahmed made this disclosure on Thursday at the International Monetary Fund (IMF)/World Bank annual meeting in Washington DC, in the United States of America (USA).

During her remarks, the Minister said part of ways to meet this target is to increase the revenue streams of the country by introducing taxes and expanding the present tax base.

She said it was necessary for the country, which is Africa’s largest economy, to move away from relying solely on crude oil to generate revenue.

According to her, Nigeria’s economy is too dependent on the oil and gas sector, which accounts for just about 10 percent of GDP and represents 94 percent of export earnings and 62 percent of both federal and state governments’ revenues in 2011-2015. She said the country went into recession because the sector suffered shortfall, which dragged the foreign exchange reserves down to $25 billion in November 2016 from $32 billion in January 2015 from a high of $53 billion in 2008.

The Minister said it was because of this economic crisis government came up with the Economic Recovery and Growth Plan (ERGP) in 2017 to diversify the economy and create an enabling business environment.

She noted that since the launch of the 4-year ERGP, “We have recorded year on year improvement on both revenue outturns and revenue to GDP ratio.

“Our revenue outturn as at December 2019 55 percent while it was 58 percent as at June 2019. Our revenue to GDP ratio on the other hand is 8 percent as at end of June 2019 while it was 5 percent as at December 2017.”

According to her, based on the success made so far, the federal government in 2018 launched the Strategic Revenue Growth Initiatives (SRGI), which provides a turnaround blueprint and mechanism that brings together revenue generating entities to review implementation progress.

The Minister said the SRGI was built on three thematic areas including: (1) to achieve sustainability in revenue generation (2) identify new and enforce existing revenue streams and (3) achieve cohesion through people and tools.

She said the initiative includes some cross-cutting enablers including data and technology, performance management and enabling laws and legislations.

“Although, the SRGI contained a robust set of initiatives that was cascaded down as program portfolios to revenue generating entities, it lacked the opportunity sizing of the incremental revenues to be achieved

practically and realistically, given the current and projected structure of the Nigerian economy. This also made it difficult to in turn cascade down the revenue to GDP target of 15 percent by 2023 that was given by the presidency.

“This time around, there are performance targets with consequences for non-performance including the members of the cabinet. For example, I have signed to deliver the 15 percent revenue to GDP in a performance contract and this will be cascaded down to Heads of revenue generating entities to have them aligned to our mission of turning around revenues,” Mrs Ahmed said.

The Minister assured that government will continue to build on the gradual growth in economy, which has recorded nine consecutive quarters of GDP increase, with the annual growth rising from 0.82 percent in 2017 to 1.93 percent in 2018, and 2.02 percent in the first half of 2019.

She attributed this to “our economy’s resilience and gives credence to the effectiveness of our economic policies thus far.”

“We also succeeded in significantly reducing inflation from a peak of 18.72 percent in January 2017, to 11.02 percent by August 2019. This was achieved through effective fiscal and monetary policy coordination, exchange rate stability and sensible management of our foreign exchange.

“We have sustained accretion to our external reserves, which have risen from $23 billion in October 2016 to about $42.5 billion by August 2019,” she added.

https://businesspost.ng/economy/nigerias-revenue-to-gdp-ratio-hits-8-targets-15-2023/

By Dipo Olowookere

Directors, managers and other high-ranking members of staff of Fidelity Bank Plc as well as their related persons have been asked to stop the trading of the company’s equities on the floor of the Nigerian Stock Exchange (NSE) for now.

These set of people have been prohibited by the financial institution to stop buying and selling of the stocks from Thursday, October 17, 2019 until the third quarter earnings of the bank are released to the NSE and the investing public.

This is to prevent insider trading by these people because of the company’s vital information at their disposal, which they may use to affect the price of the stock at the exchange to the disadvantage of others.

In a notice on Friday, Fidelity Bank said its board of directors was planning to have a meeting on Thursday, October 24, 2019 for the consideration and approval of its results for the nine months ended September 30, 2019.

After the approval of the results by the board, the financial statements would be transmitted to the Central Bank of Nigeria (CBN), which would look into them and return to the bank before they are released to the public.

“This is to inform the Nigerian Stock Exchange and the investing public that in line with Fidelity Bank Plc’s Insider Trading Policy and the extant Issuers’ Rules of the exchange, the board of directors of Fidelity Bank Plc shall meet on Thursday, October 24, 2019, to consider the Unaudited Financial Accounts for the third quarter ended September 30, 2019.

“Consequently, all insiders and their connected persons are prohibited from trading (i.e buying, selling, transferring or otherwise dealing) in the bank’s shares from October 17, 2019 until the Unaudited Accounts for the quarter ended September 30, 2019 are released on the floor of the Nigerian Stock Exchange (NSE),” the disclosure from the lender today said.

Business Post reports that shares of Fidelity Bank appreciated on Friday by 2 kobo or 1.18 percent to close at N1.72 per share.

https://businesspost.ng/banking/fidelity-bank-orders-directors-others-to-stop-sale-of-shares/

By Adedapo Adesanya

The Federation Account Allocation Committee (FAAC) has disclosed that the current balance in Nigeria’s Excess Crude Account (ECA) stands at $323.692 million as of Thursday, October 17, 2019.

The ECA, which was created by former President Olusegun Obasanjo in 2004 for the purpose of saving oil revenue in excess of the budgeted benchmark, had once reached a peak of $20 billion in 2009, but has since recorded decline due to government’s inability to effectively generate revenue from non-oil sector to fund its expenditures.

In a statement issued by the FAAC, which is headed by the Accountant General of the Federation (AGF), Mr Ahmed Idris, it was also revealed that a total of N693.529 billion was shared across the federal, thirty-six states and 774 local governments in Nigeria for the month of September 2019.

The money comprises revenue made from Value Added Tax (VAT), Exchange Gain, and Gross Statutory Revenue.

A communique issued by FAAC confirmed that from the total revenue of N693.529 billion, the Federal Government received N293.801 billion, the states received N186.816 billion, while the Local Government Councils received N140.864 billion.

On their parts, the oil-producing states received N51.532 billion as 13 per cent derivation revenue and the revenue-generating agencies received N20.517 billion as cost of revenue collection.

The gross statutory revenue for September was N599.701 billion, N32.095 billion lesser than the sum of N631.796 billion received in the previous month.

The gross revenue of N92.874 billion in September was available from the Value Added Tax as against N88.082 billion distributed in the preceding month, resulting in an increase of N4.792 billion.

It was also noted that the exchange gain yielded a total revenue of N0.954 billion.

Looking at a break-down of the distribution, it showed that from the gross statutory revenue of N599.701 billion, the Federal Government received N279.985 billion, the states received N142.012 billion, while the Local Government Councils received N109.485 billion.

Also, the oil-producing states received N51.417 billion as 13 percent derivation revenue and the revenue collecting agencies received N16.802 billion as cost of collection.

“The N92.874 billion gotten from Value Added Tax (VAT) revenue was shared accordingly in which the Federal Government received N13.374billion, the states received N44.580 billion, and Local Government Councils received N31.206 billion and the revenue-generating agencies received N3.715 billion,” the statement added.

However, it was revealed that in September, revenue from Petroleum Profit Tax (PPT) and Company Income Tax (CIT) dropped while royalties, import and excise duties, and VAT increased considerably.

https://businesspost.ng/economy/only-323-7m-remains-in-nigerias-excess-crude-account-faac/

Seven Banks Make CBN's 'Too Big to Fail' List
https://businesspost.ng/banking/seven-banks-make-cbns-too-big-to-fail-list/

NSE Records Zero Incidents of Corruption
https://businesspost.ng/economy/nse-records-zero-incidents-of-corruption/

GTBank Q3 Results Show Brand’s Strength, Business Strategy Quality
https://businesspost.ng/banking/gtbank-q3-results-show-brands-strength-business-strategy-quality/

Investors Offer CBN N1.12trn for N430bn OMO Bills
**As Sell Pressure Pushes T-Bills Yields to 12.37%
https://businesspost.ng/economy/investors-offer-cbn-n1-12trn-for-n430bn-omo-auction/

Banking, Industrial Goods Stocks Keep NSE Index in Red
https://businesspost.ng/economy/banking-industrial-goods-stocks-keep-nse-index-in-red/

Naira Loses 12 Kobo at Investors Window as FX Demand Rises
https://businesspost.ng/economy/naira-loses-12-kobo-at-investors-window-as-fx-demand-rises/

Oil Prices Rise as UK, EU Strike Brexit Deal
https://businesspost.ng/economy/oil-prices-rise-as-uk-eu-strike-brexit-deal/

CSCS, NEDP Further Crashes NASD OTC Market by 0.44%
https://businesspost.ng/economy/cscs-nedp-further-crashes-nasd-otc-market-by-0-44/

Ghanaian Traders Lament Over Closure of Nigerian Borders
https://businesspost.ng/economy/ghanaian-traders-lament-over-closure-of-nigerian-borders/

Lagos Mulls Rice Cultivation With Six States
https://businesspost.ng/economy/lagos-mulls-rice-cultivation-with-six-states/

Investors Offer CBN N1.12trn for N430bn OMO Bills
**As Sell Pressure Pushes T-Bills Yields to 12.37%
https://businesspost.ng/economy/investors-offer-cbn-n1-12trn-for-n430bn-omo-auction/

The federal government, in its latest determination to increase the nation’s revenue streams, is considering the introduction of excise duties on carbonated drinks consumed in the country.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made this disclosure on the sidelines of the ongoing annual meetings of the International Monetary Fund and the World Bank in Washington D.C., the United States.

She said government was working to maximise existing revenue streams while trying to identify new revenue streams, including the sugar tax, which would be charged on soft drinks.

According to her, “Our objective is to be able to harness the existing revenue streams that we have by ensuring that enforcement is effective to expand the tax base and also to identify new revenue streams that we can add to expand the revenue base.”

To expand its revenue base, Mrs Ahmed said further that, “We have proposed the increase of VAT but there are also other revenue streams that we are looking at and some of them include the introduction of excise duties on carbonated drinks but there is a process to doing these things.”

“Any tax that you are introducing will involve a lot of consultations and also amendments of some laws or introduction of new regulations.

“There are several cost-cutting measures also in the Strategic Revenue Growth Initiative (SRGI) and also a number of cost-cutting initiatives such as innovation and automation as well as capacity building of our people,” she stated.

She further added that the fact the country’s revenue was under-performing was not enough excuse to bring down revenue that is required to fund the national budget.

“The budget of countries is supposed to be based on taxes that the country is able to generate. It is an anomaly for us in Nigeria that our budgets have not been focusing on revenue,” she said.

“In 2018, our revenue performed at a level of 58 percent. Half-year 2019, our performance moved up slightly to 58 percent. But that is not an excuse to reduce revenue. Because it means we are all sanctioning under performance.”

Ahead of 2020, the minister said the country was looking at harnessing the full potential of revenue mobilization and also increase the nation’s tax to GDP ratio.

“The only increase in taxes in 2020 budget is just VAT. Everything else is just maximizing the potentials of existing tax streams that we have and we hope that we will be able to do this to be able to move our tax to GDP ratio from the current seven to eight percent of GDP to 15 percent,” she added.

Business Post reports that excise is currently placed on alcoholic beverages, which has put the players in the sector in very difficult situation, resulting in poor performances at the market.

In the United Kingdom, government charges tax on sugar-sweetended beverages in an effort to reduce the health challenges associated with intake of soft drinks.

https://businesspost.ng/economy/fg-considers-tax-on-soft-drinks-to-boost-revenue/

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By Modupe Gbadeyanka

The Nigerian government, in a bid to curb leakages and ensure efficiency in the management of its resources, has directed that henceforth, all Ministers, Permanent Secretaries, Chairmen of Extra-Ministerial Departments, Chief Executive Officers and Directors are restricted to not more than two foreign travels in a quarter for highly essential statutory engagements that are beneficial to interest of the nation.

This directive was approved by President Muhammadu Buhari as part of additional cost saving measures aimed at instilling financial discipline and prudence, particularly, in the area of official travels.

In a statement issued on Wednesday, it was emphasised that the affected officials can only embark on more than two foreign trips in three months “except with the express approval of Mr President.”

In addition, all Ministries, Departments and Agencies (MDAs) have been asked to submit their Yearly Travel Plans for statutory meetings and engagements to the Office of the Secretary to the Government of the Federation and/or the Office of the Head of Civil Service of the Federation for express clearance within the first quarter of the fiscal year, before implementation.

They are further required to make their presentation using the existing template and also secure approvals on specific travels as contained in the plan, from the appropriate quarters.

The statement obtained by Business Post said “all public funded travels (local and foreign), must be strictly for official purposes backed with documentary evidence.”

Also, when a Minister is at the head of an official delegation, the size of such delegation shall not exceed 4 including the relevant Director, Schedule Officer and 1 Aide of the Minister.

Every other delegation below ministerial level shall be restricted to a maximum of three and for the class of air travels, the President has approved that Ministers, Permanent Secretaries, Special Advisers, Senior Special Assistants to the President, Chairmen of Extra-Ministerial Departments and Chief Executive Officers of Parastatals who are entitled, continue to fly Business Class while other categories of public officers are to travel on Economy Class.

“Also, travel days will no longer attract payment of Estacode Allowances as duration of official trips shall be limited to only the number of days of the event as contained in the supporting documents to qualify for public funding,” the statement said.

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