Latest news with #FAAC
Zawya
25-03-2025
- Business
- Zawya
Nigeria: FAAC disburses $2bln Year-to-Date —Report
The Federation Accounts Allocation Committee (FAAC) has distributed a total of N3.4 trillion to the federal, state, and local governments in Nigeria from the beginning of the year to date, according to a recent report by FBNQuest Research. This marks a 47 percent year-on-year (YoY) increase, reflecting improved government revenue generation. The significant allocation highlights the federal government's commitment to fiscal stability and economic growth, with the funds expected to support key developmental projects across all tiers of government. According to the latest FAAC communique, the total monthly disbursement for March 2025 (derived from February revenue) stood at N1.68 trillion. However, this represents a N25 billion decline compared to the previous month's payout. The month-on-month (MoM) reduction in revenue allocation was primarily due to a decline in value-added tax (VAT) collections, which dropped from N718.8 billion in January to N609.4 billion in February. Additionally, augmentation revenue stood at N178 billion, lower than the N214 billion received in the previous month, further contributing to the overall decline. Despite these reductions, some revenue sources saw improvements. Statutory revenue collections increased to N827.6 billion, up from N749.7 billion, while Electronic Money Transfer Levy (EMTL) receipts also rose to N35.2 billion, compared to N20.5 billion in the previous month. Notably, the federal government's allocation increased by N17 billion to N570 billion, despite the overall revenue decline. However, allocations to state governments (excluding the 13 percent derivation for oil-producing states) and local governments fell by N28 billion and N24 billion, bringing their shares to N562 billion and N411 billion, respectively. Conversely, the 13 percent derivation allocation for oil-producing states rose to N136 billion from N125 billion, driven by a significant increase in oil and gas royalty receipts. Looking ahead, FBNQuest analysts project further expansion in government revenue collection, supported by improved non-oil revenue streams and higher oil earnings.
Yahoo
06-03-2025
- Business
- Yahoo
Ekiti State Governor urges ICAN to maintain certification standards
The Governor of Ekiti State has emphasised the importance of maintaining the certification standards set by the Institute of Chartered Accountants of Nigeria (ICAN). During a recent address, he highlighted the institute's role in upholding the 'credibility' and 'high reputation' of the accountancy profession in Nigeria. Governor Biodun Oyebanji commended ICAN-certified accountants for their contribution to transparency and accountability within his administration. He noted that their expertise has helped in managing the state's resources effectively. ICAN president Chief Davison Chizuoke Alaribe affirmed that the Governor's approach aligns with ICAN's values and has set a benchmark for other states to follow. Despite concerns about the challenging nature of ICAN's examinations, Oyebanji stressed that the difficulty is essential for maintaining the institute's respected position in the professional community. Oyebanji said: 'You will also agree with me that your colleagues in government are doing so well and this has led to good ratings in respect to accountability and transparency. We have very small resources, on FAAC ladder, we are either second or third to the last every month. 'So, the little we have, we have to apply it in a way and manner that will give happiness to the greatest number of people in the state, and this required a lot of financial engineering from their side and since we got into office we have been rated high in transparency and accountability in the country.' ICAN, which was established by an Act of Parliament in 1965, has a council comprising 30 members, with 24 elected by its members and six nominated by the government. This structure ensures representation from across Nigeria's six geopolitical zones. In January 2025, ICAN expanded its professional development efforts by inaugurating the Nigerian Insurers Association (NIA) Chapter. The event, held at the Insurers House in Lagos, marked a step towards fostering collaboration and continuous learning among accounting professionals in the country. "Ekiti State Governor urges ICAN to maintain certification standards " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
03-03-2025
- Business
- Zawya
Nigeria: Short-term interest rates to trend low on over $2bln expected liquidity inflows
Nigeria's financial markets are poised for a significant influx of liquidity, with over N3 trillion expected to flood the system in the short term. This substantial liquidity injection is anticipated to have a profound impact on short-term interest rates, which are likely to trend lower as a result. The impending liquidity surge, driven by factors such as maturing treasury bills and bond repayments, is expected to increase the amount of money available for lending, thereby exerting downward pressure on short-term interest rates. Dealers from Cowry Assets Management Limited in a note to investors observed that given these conditions, short-term interest rates are likely to remain under pressure, with investors closely monitoring developments in the fixed-income space for strategic positioning. 'Looking ahead, we anticipate a further decline in money market rates in the coming week as liquidity inflows continue to shape market dynamics. Another tranche of N1.7 trillion from FAAC allocations is expected to permeate the financial system, sustaining the current liquidity uptrend. Additionally, maturities worth N50 billion from Open Market Operation (OMO) bills and N1.27 trillion from Treasury Bills will enter the market, further bolstering liquidity levels, ' Cowry Assets Management stated. Meanwhile, the Nigerian money market witnessed a significant increase in liquidity last week following a substantial inflow of N1.7 trillion from the Federation Account Allocation Committee (FAAC). This excess liquidity led to a sharp decline in the Nigerian Interbank Offered Rate (NIBOR) across all tenors, reflecting reduced funding pressures among financial institutions. Industry participants observed that the Overnight NIBOR saw the steepest drop, plunging by 438 basis points to settle at 28.54 percent. Similarly, the one-month, three-month, and six-month NIBOR rates declined by 17 basis points, 36 basis points, and 84 basis points, respectively, highlighting the impact of the liquidity surplus in the interbank market. The decline in market rates according to dealers, was also evident in the broader money market, as both the Overnight (OVN) rate and the Open Buy Back (OPR) rate moderated, closing the week at 26.75 percent and 27.33 percent, respectively. This occurred despite the Debt Management Office (DMO) settling N910.4 billion worth of Federal Government bonds, which temporarily absorbed some liquidity from the financial system. In the Nigerian Treasury Bills (NTB) market, the Nigerian Interbank Treasury Bills True Yield (NITTY) declined across most tenors,exceptf the one-month NITTY, which rose by 21 basis points. This suggests that investors are shifting focus towards short-term securities, likely in response to prevailing money market conditions and expectations of further liquidity inflows. Meanwhile, the three-month, six-month, and twelve-month NITTY rates trended lower as market participants exited the secondary market in anticipation of an upcoming robust Primary Market Auction (PMA) for Treasury Bills this week. The secondary Treasury Bills market saw a moderate bullish sentiment, as the average yield declined by 35 basis points week-on-week. This downward movement in yields was largely driven by increased demand across various maturities, as investors sought to lock in favourable rates ahead of the expected liquidity surge. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
