FG to Implement Outcome of Revenue Allocation Debate | Business Post Nigeria – Business Post Nigeria
By Adedapo Adesanya
The federal government has promised to implement the outcome of the ongoing review of the current Vertical Revenue Allocation Formula being carried out by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).
This is even as there have been proposals of new figures for allocation between the three tiers of government, which would reduce its share.
The promise was made by the Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, who was represented by the Permanent Secretary in charge of political and economic affairs, Mr Andrew David Adejoh.
While giving the federal government position on the review at the public hearing for the Federal Capital Territory (FCT), he assured that the FG was committed to doing the needful once it is ratified by the National Assembly.
He said, “On behalf of President Muhammadu Buhari, I wish to re-assure all Nigerians that the federal government will implement the final outcome of the conclusion of this exercise as soon as the National Assembly enacts the relevant legislation to complete the processing.”
The new allocation recommends that the federal government should have 50.65 per cent, state government 25.62 per cent, local government 23.73 per cent while derivation still stands at 13 per cent.
The new proposed formula is a shift from the current method that runs thus: FG – 52.68 per cent, state government – 26.72 per cent, local governments – 20.60 per cent while derivation is 13 per cent.
It advised that states should up their Internally Generation Fund counselling, adding that it was important to restart that revenue application. This, according to proponents, should be done constructively in the face of a dwindling national revenue base and the imperative for states to generate their IGR.
The SGF admitted that the present revenue allocation formula, both vertical and horizontal is long overdue for a review not only because the last one was done in 1992.
“Equally important is the fact this review should culminate in improved national development.
“Most importantly, contemporary issues since then, such as heightened insecurity, decaying infrastructure, need for appropriately matching statutory functions and tax powers, need to be taken into consideration,” the SGF stated.
He commended RMAFC for the consultative process it adopted in ensuring that the diverse views across all spectrums of the society were taken into consideration.
He cautioned that review of revenue cannot and should not be an emotional or sentimental discussion and should not be done arbitrarily. It submitted that to have an endearing vertical review of the presentation revenue allocation formula, the responsibilities to be carried out by all must be agreed upon.
On his part, the chairman of RMAFC, Mr Elias Mbam informed that the commission relied on its statutory powers of the 1999 constitution as amended to embarrass on the review.
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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.
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Transactions on the floor of the Nigerian Exchange (NGX) Limited on Thursday closed bearish by 0.36 per cent on the back of a weak investor sentiment, which resulted in only 12 stocks closing on the gainers’ table and 19 stocks finishing on the losers’ chart.
Financial equities were the major drivers of the loss printed at the market yesterday as the banking sector lost 0.95 per cent, while the insurance counter declined by 0.93 per cent, with the industrial goods space depreciating by 0.10 per cent. The consumer goods ecosystem, however, appreciated by 0.02 per cent, while the energy sector closed flat.
When trading activities were closed for the session, the All-Share Index (ASI) was down by 158.02 points to 43,549.28 points from 43,707.30 points, while the market capitalisation declined by N82 billion to N22.727 trillion from N22.809 trillion.
Business Post reports that Unity Bank was the best-performing stock yesterday as its value improved by 7.27 per cent to 59 kobo. FTN Cocoa rose by 5.00 per cent to 42 kobo, Universal Insurance jumped by 4.76 per cent to 22 kobo, Lafarge Africa leapt by 2.62 per cent to N25.50, while UPDC gained 2.42 per cent to sell for N1.69.
The worst-performing stock for the session was, however, Cornerstone Insurance, which depreciated by 8.77 per cent to quote at 52 kobo, followed by Cutix, which lost 8.06 per cent to sell for N5.70.
eTranzact declined by 7.32 per cent to N1.90, Regency Assurance also dropped 7.32 per cent to trade at 38 kobo, while Lasaco Assurance fell by 5.36 per cent to N1.06.
On the activity chart, investors traded 161.3 million equities worth N2.1 billion in 3,574 deals on Thursday in contrast to the 270.7 million equities worth N5.6 billion traded in 3,861 deals on Wednesday, implying that the trading volume, value and the number of deals dropped 40.41 per cent, 61.97 per cent and 7.43 per cent respectively.
FBN Holdings finished the day as the most active stock with the sale of 28.2 million units worth N322.1 million. Transcorp traded 23.5 million shares for N23.5 million, Zenith Bank sold 12.5 million equities valued at N301.2 million, Access Bank transacted 9.3 million stocks for N87.0 million, while Sterling Bank exchanged 8.3 million shares for N12.5 million.
By Adedapo Adesanya
For yet another session, the duo of NASD Plc and Central Securities Clearing Systems (CSCS) Plc were the heroes at the NASD Over-the-Counter (OTC) Securities Exchange.
They further spurred the trajectory of the NASD OTC bourse into the bullish territory for the fourth straight session this week on Thursday, November 11.
The performance in the stock prices of these companies increased the market capitalisation of the exchange by 0.59 per cent or N3.66 million to N625.55 billion from N621.89 billion it closed on Wednesday.
This movement was also seen in the NASD Unlisted Security Index (NSI), which added 4.43 basis points to end the day at 757.16 points as against 752.73 points it recorded at the previous session.
NASD Plc appreciated by N2.17 or 8.9 per cent yesterday to sell for N23.07 per unit compared with N21 per unit of the preceding day, while CSCS Plc grew by 56 kobo or 3.2 per cent to sell at N17.61 share as against the previous day’s N17.05 per share.
Business Post reports that the market recorded a sole price loser yesterday and this was Afriland Property Plc, which lost 4 kobo or 3.60 per cent to quote at N1.07 per unit in contrast to the earlier day’s value of N1.11 per unit.
During the session, the volume of securities traded by investors increased by 292.5 per cent to 222,154 units from 56,600 units transacted at the preceding session.
In the same pattern, the value of the stocks was up by 485.4 per cent to N5.7 million from N971,800, while the number of deals carried out increased by 400 per cent to 15 deals from the 3 deals executed a day earlier.
Food Concepts Plc remained as the most traded stock on a year-to-date basis with 11.4 billion units of its shares worth N14.4 billion, followed by Lighthouse Financial Services Plc with 1.1 billion units valued at N546.2 million and Geo Fluids Plc with 1.0 billion units worth N700.1 million.
Also, Food Concepts Plc was the most traded stock by value on a year-to-date basis with 11.4 billion units worth N14.4 billion, followed by Nigerian Exchange (NGX) Group Plc with 456.5 million units valued at N9.2 billion, and VFD Group Plc with 10.4 million units sold for N3.5 billion.
By Adedapo Adesanya
The Naira closed flat against the United States Dollar at N414.73/$1 at the Investors and Exporters (I&E) window of the foreign exchange (FX) market on Thursday, November 11.
This came as demand eased at the specialised session with investors’ need for the greenback dropping by 73.2 per cent or $224.23 million as total transactions worth $82.01 million were made, lower than the $306.24 million carried out at the preceding session.
However, it was not a similar situation at the interbank segment of the forex market as the domestic currency further depreciated against the Dollar by 2 kobo to trade at N411.39/$1 in contrast to N411.37/$1 it was traded on Wednesday.
But the local currency appreciated against the British Pound Sterling by N7.13 at the same market window yesterday to sell for N551.22/£1 compared to the preceding day’s N558.35/£1.
The Nigerian currency equally appreciated against the Euro on Thursday by N4.50 to quote at N471.91/€1 in contrast to N476.41/€1 it was traded at the previous trading day.
As for the digital currency market, it was in red as the bears dominated the ecosystem as investors are treading cautiously, leaving six of the 10 digital assets tracked by Business Post closing bearish.
Binance Coin (BNB) gained 2.4 per cent to trade at N259,756.50, Dash (DASH) appreciated by 1.9 per cent to sell at N127,349.64, Ethereum (ETH) improved by 1.8 per cent to settle at N2,639,900.00, while Dogecoin (DOGE) rose by 0.9 per cent to trade N157.46.
But Litecoin (LTC) depreciated by 9.6 per cent to trade at N143,349.64, Ripple (XRP) fell by 7.9 per cent to sell for N667.04, Tron (TRX) slipped by 4.4 per cent to sell at N58.79, The United States Dollar Tether (USDT) tripped by 2.0 per cent to close at N555.39, Cardano (ADA) declined by 1.1 per cent to trade at N1,590.00 while Bitcoin (BTC) lost 0.3 per cent to quote at N36,083,255.09.
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