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FG, states, LGs shared N3.47tn in Q2 indicating an increase of N46.77bn— NEITI
By Mario Deepromoter
The Nigeria Extractive Industries Transparency Initiative has stated that the Federation Accounts Allocation Committee disbursed N3.473tn to the three tiers of government in the second quarter of 2024.
This reflects an increase of N46.77bn (1.42 per cent) compared to the first quarter of 2024, the agency stated in a statement on Monday.
The statement signed by its Assistant Director of Communications and Advocacy, Chris Ochonu, noted that these figures were part of NEITI’s latest Quarterly Report on Federation Account Revenue Allocations for Q2 2024.
Unveiling the report in Abuja, the NEITI Executive Secretary, Dr Ogbonnaya Orji, emphasised that “the quarterly review aims to highlight the sources of funds into the Federation Account and the factors affecting the growth or decline in revenues and distributions over time”.
“The ultimate goal of this disclosure is to enhance knowledge, increase awareness, and promote public accountability in the management of public finances,” Orji stated.
He said the Federal Government received N1.102tn, representing 33.35 per cent of the total allocation while 36 states received N1.337tn (40.47 per cent) and the 774 Local Government councils shared N864.98bn (26.18 per cent).
Additionally, nine oil-producing states received N169.26bn as their derivation share from mineral revenue.
“A comparison with the previous quarter shows that the Federal Government’s allocation decreased by N41.44bn (3.76 per cent), while state governments saw an increase of N58.13bn (4.29 per cent), and local government councils experienced a rise of N30.82bn (3.57 per cent).
“The Nigeria Upstream Petroleum Regulatory Commission, the Federal Inland Revenue Service, and the Nigeria Customs Service were identified as the main revenue-generating agencies for the Federation Account.
“Their contributions included oil and gas royalties, petroleum profit tax, company income tax, value-added tax, and import & excise duties,” the statement noted.
The report highlighted an upward trend in revenue allocations in the latter months of 2023 and early 2024. Total monthly disbursements increased from N1.094tn in January 2024 to N1.098tn in February but then declined slightly to N1.065tn in March.
On state-by-state allocations, Delta State received the largest share of allocations in Q2 2024, with a gross allocation of N137.36bn, including oil derivation. Lagos State followed with N123.28bn, and Rivers State came in third with N108.104bn. Nasarawa, Ebonyi, and Ekiti States received the least, with N24.735bn and N25.40bn, respectively.
Among local governments, Alimosho in Lagos State received the highest allocation at N5.72bn, followed by Ajeromi/Ifelodun (N4.59bn) and Kosofe (N4.54bn). Ifedayo received the smallest share of N661.82m.
“Nine states benefited from 13 per cent oil derivation revenue, with Delta State leading at 40.153 per cent, followed by Bayelsa (38.112 per cent) and Akwa Ibom (36.117 per cent). Rivers State recorded a derivation ratio of 27.272 per cent, while the other oil-producing states had ratios below 20 per cent.
“However, solid minerals-producing states did not receive derivation revenue in Q2 2024 due to insufficient revenue generation from the sector.”
Continuing, the NEITI boss stated that Bauchi State recorded the highest debt deductions in Q2 2024 at N6.49bn, followed by Ogun State. Anambra State had the least deductions at N115.6m, while Lagos and Nasarawa recorded no debt deductions for the quarter.
Making its recommendations, the NEITI urged states to take advantage of ongoing reforms in the solid minerals sector to diversify their revenue sources.
It added that “The Central Bank of Nigeria should strengthen measures to stabilize the exchange rate and reduce fluctuations in Federation Account remittances.
“States should adopt realistic budget benchmarks for oil production and exports to minimize fiscal shocks from price volatility.
“The Revenue Mobilisation Allocation and Fiscal Commission and the Office of the Accountant-General of the Federation should take decisive steps to increase transparency and accountability, particularly in the payment of special revenue accruals like derivation arrears and debt repayment refunds.”
The NEITI boss also urged the citizens and civil society organizations, particularly those involved in revenue and expenditure monitoring, to show interest and strengthen their capacity in budget tracking and monitoring of allocations and disbursements to all tiers of government.
News
Tinubu to skip 79th UNGA to focus on pressing challenges at home
By Francesca Hangeior
President Bola Tinubu has decided to skip the 79th United Nations General Assembly (UNGA) in New York, opting instead to focus on Nigeria’s pressing domestic challenges, particularly the recent devastating flooding that has affected the country.
A statement issued on Thursday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, which disclosed President Tinubu’s decision, also said Vice President Kashim Shettima will lead Nigeria’s delegation in his place.
The President’s move is seen as a prioritization of local concerns over international diplomacy, as President Tinubu aims to address the immediate needs of Nigerians affected by the floods.
The UNGA, scheduled to take place from September 24 to 28, 2024, will feature discussions on sustainable development, peace, and human dignity.
VP Shettima will deliver Nigeria’s national statement to the General Assembly, attend key sideline events, and engage in bilateral meetings, ensuring the country’s interests are represented on the global stage.
“President Bola Tinubu will not attend the 79th United Nations General Assembly session in New York this year.
“The President has thus directed Vice President Kashim Shettima to lead Nigeria’s delegation.
“President Tinubu, who returned to the country last Sunday after his trip to China and the United Kingdom, wants to focus on domestic issues and address some of the country’s challenges, especially after the recent devastating flooding.
“At UNGA 79, Vice President Shettima will deliver Nigeria’s national statement to the General Assembly, attend important sideline events, and hold bilateral meetings.
“The high-level General Debate, with the theme ‘Leaving no one behind: Acting together for the advancement of peace, sustainable development and human dignity for present and future generations’, will run from Tuesday, September 24, through Saturday, September 28, 2024”, the statement said.
News
Tinubu Loyalist, Yemi Adenuga under fire after asking Igbo’s to leave Lagos but contesting for Elelection In Ireland
By Francesca Hangeior
President Tinubu staunch loyalist and Igbo-Must-Leave-Lagos-Election-For-Yoruba campaigner, Yemi Adenuga is under fire in Ireland, where she is vying for nomination for position in the general election.
The Irish nationals who watched her video calling for the Igbo to leave elections in Lagos for the Yoruba, have called on Nigerians to enquire if it is morally right for her to leave Irish election for the Irish?
Yemi Adenugais facing avalanche of serious criticism over nominations to contest in Irish general election.
Irish and Nigerian critics have questioned her conscience and moral right to take part in Ireland election when she was involved in hate election campaign that asked the Igbo to leave Lagos for Yoruba during the last election in February 2023.
News
Dangote not reason behind high fuel prices in Nigeria-OPEC Scribe
By Kayode Sanni-Arewa
The OPEC Secretary General called for a shift away from the narrative that pits consumers against producers, emphasizing that both groups are stakeholders in the energy ecosystem
Nigeria’s fuel price hike has sparked widespread concerns, with many pointing fingers at oil producers, particularly local operators like Dangote Refinery.
However, OPEC Secretary General, Haitham Al Ghais, has set the record straight, revealing that the real reasons behind high fuel prices lie elsewhere—primarily in taxes imposed by governments, including those of major oil-consuming nations.
In an article published on Tuesday, Al Ghais explained that crude oil and its derivatives form the backbone of global industries, powering everything from transportation to pharmaceuticals.
While many assume that rising oil prices directly benefit oil producers at the expense of consumers, the OPEC chief debunked this myth, noting that oil-producing nations are not the primary beneficiaries of retail fuel sales.
“Revenues are often generated, but they are predominantly earned by major oil-consuming countries through taxation,” Al Ghais highlighted. The Secretary General emphasized that countries within the OECD (Organisation for Economic Co-operation and Development) earn substantially more from the retail sale of petroleum products than OPEC member countries make from the sale of crude oil itself.
Between 2019 and 2023, OECD nations earned approximately $1.915 trillion more annually than OPEC nations from petroleum products. In 2023 alone, taxes accounted for around 44% of the final retail price of petroleum products in OECD countries, and in certain European countries, this figure exceeded 50%.
For Nigerian consumers, this highlights that the high cost of fuel at the pump is not merely a reflection of crude oil prices or refinery margins. Instead, a significant portion of what consumers pay is directed towards government taxes. “It is important to recognize that the price paid by consumers at the pump is determined by multiple factors, including crude oil prices, refining, transportation, and, notably, taxes,” Al Ghais pointed out.
In the UK, for instance, fuel duties are expected to generate £24.7 billion in revenue for the government in 2023-24, amounting to 2.2% of all receipts. Such figures indicate the global trend of governments, both in producing and consuming nations, leveraging petroleum products for revenue generation.
Al Ghais also underscored that while oil-producing nations do earn revenue from oil sales, a significant portion is reinvested into exploration, production, and infrastructure projects to ensure the continuous flow of supply to consumers worldwide. This reinvestment is critical for maintaining future oil supplies and stabilizing global energy markets.
In conclusion, while taxes play a crucial role in supporting government services and infrastructure, they also represent a considerable portion of the price consumers pay at the pump.
The OPEC Secretary General called for a shift away from the narrative that pits consumers against producers, emphasizing that both groups are stakeholders in the energy ecosystem.
The current fuel price crisis in Nigeria is a stark reminder of the complexity behind fuel pricing, where taxes, rather than oil producers, bear much of the responsibility for what Nigerians pay at the pump.
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