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FAAC: FG, States, LGAs share N693.529bn for September

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FAAC shares N651.18bn to FG, States, LGs in June

…As FG, Labour agree on consequential adjustments on Minimum wage***

The Federation Account Allocation Committee (FAAC) on Thursday in Abuja shared a total of N693.529 billion to the three tiers of government for the month of September, 2019.

The N693.529 billion, comprising revenue from Value Added Tax(VAT), Exchange Gain and Gross Statutory Revenue in the month, was less than the  N631.796 billion received in the previous month by N32.095 billion.

A communiqué read by the Accountant General of the Federation (AGF) Mr. Ahmed Idris, confirmed that the gross statutory revenue for the month of September was N599.701billion.

For the month, gross revenue of N92.874 billion was generated from VAT as against N88.082 billion distributed in the previous month, indicating an increase of N4.792 billion.

According to the communique, N0.954 billion was also realised from Exchange Gain for the month.

A breakdown of the allocation showed that from the total revenue of N693.529 billion shared, the Federal Government received N293.801 billion, the States received N186.816 billion, and the Local Government Council received N140.864 billion.

The Oil Producing States shared N51.532 billion as 13 per cent derivation, while the Revenue Generating Agencies received N20.517 billion as cost of revenue collection.

The communique also stated that in September 2019, revenue from Petroleum Profit Tax (PPT) and Company Income Tax (CIT) decreased while Royalties, Import and Excise Duties and Value Added Tax increased considerably.

However, the AGF said that as at Oct. 17, the balance in the Excess Crude Account was $323.692million.

In the meantime, Government and the labour unions may have tentatively reached agreement, following three days of negotiations by both parties on the consequential adjustments of the implementation of the new minimum wage of N30,000.

The Conciliators to the agreement are Minister of Labour and Employment, Dr Chris Ngige and his state counterpart, Dr Festus Keyamo.

Also read: FAAC: FG, States, LGAs share N769.52bn for July

Witnesses to the agreement from the Government side are; Dr Folashade Yemi-Esan, Ag. Head of the Civil Service of the Federation and Mr Olusegun Olufehinti, Director IPPIS, Office of the Accountant General of the Federation.

On the Labour side was Mr. Simon Anchaver, Ag. Chairman JNPSNC and, Mr. Alade Bashir, Secretary General, JNPSNC.

A communiqué was issued and the end of the negotiations and signed by all parties.

“Following the threat by Organised Labour not to guarantee industrial peace after Wednesday, October 16, 2019, as a result of the deadlock in the ongoing negotiation on the Consequential Adjustment of emoluments in Federal Government Ministries, Departments and Agencies (MDAs) arising from the New National Minimum Wage of Thirty Thousand Naira (N30, 000.00) as imbued in the National Minimum Wage Act, 2019, the Honourable Minister of Labour and Employment in exercise of his powers under the Trade Dispute Act, CAP T8, Laws of the Federation of Nigeria (LFN) 2004, apprehended the trade dispute and called the parties to conciliation meetings.

“He met each of the Joint National Public Service Negotiating Council (JNPSNC) on Wednesday, 9th October and Monday 15th October, 2019. Thereafter, joint meetings were held on 16th, 17th and 18th of October, 2019, after which the following Terms of Settlement and Agreement pertaining to the Minimum Wage Consequential Adjustments in the Public Service were reached.

“The consequential adjustment for Consolidated Public Service Salary Structure (CONPSS), called group one is;
GL 07 -23.2 per cent, GL 08 -20 per cent, GL 09 – 19 per cent, GL 10 – 14 is 16 per cent, while GL 15-17 is 14 per cent.

“The second Group consists of Consolidated Health Salary Structure (CONHESS), Consolidated Tertiary Educational Institutions Salary Structure (CONTEDISS), Consolidated University Academic Salary Structure II (CONUASS II).

“Others are; Consolidated Polytechnics and Colleges of Education Academic Salary Structure (CONPCASS) and Consolidated Research and Allied Institutions Salary Structure (CONRAISS).

“For Grade Level seven and its equivalent, it is 23.2 per cent, GL 8-14 Equivalent at 16 per cent, and
GL 15-17/Equivalent at 10.5 per cent.”

Confirming the agreement, the Trade Union Congress in a statement, said it was a win-win situation for Nigerian workers and commended the Federal Government and organised labour for their patience while the National Minimum Wage negotiations lasted.

The statement jointly signed by President of the Congress, Mr Quadri Olaleye and Secretary General, Mr Musa-Lawal Ozigi, said it was not an easy journey, applauding government’s team for their wisdom and sincerity.

“We commend the Head of Service of the Federation, Dr Folashade Yemi-Esan and her team for their sincerity.

“Though they argued that government cannot afford to meet our earlier demand of N30,000 minimum wage across board, because of the economic situation in the country, we made them understand that some people cannot be more Nigerian than others, If we are tightening our belts, government should also do so.”

The Union said as an organisation and a major stakeholder in the Nigerian project, they believe that the parties have done well.

“We shifted grounds and that is why we were able to resolve things without major injuries. It is a win-win situation.”

The TUC boss said he was particularly happy with the agreement, because it has addressed some salary discrepancies and overlapping issues that workers have agitated about.

“This is a unique agreement and we promise to build on that by God’s grace,” he added.

Earlier, the Minister of Labour and Employment, Dr Chris Ngige said the new minimum wage was a national law and it must be obeyed by all tiers of government.

“We have often repeated that the essence of that law was for the president to lift the vulnerable working force both in the private and public service.

“This is a national law and it must be obeyed by all; state government, local government and all persons concerned that employ more than 25 persons in their organisation.

“We have decided to fast tract discussions. We are fast tracking it because we need to put an end to the issue of minimum wage till the next five years, when it will arise again.

“We need to finalise this today. The suspense is too much for the people. Even your constituency- workers, if we don’t conclude today, they will be thinking otherwise.

“They will start thinking that you have been compromised, even the government side, if we don’t conclude today, they will start saying you people are influencing us.

“This negotiation should be, in the spirit of give and take, in the spirit of one nation, end this thing. If we decide to empty the purse so that the nation will go broke, it will affect all of us.

“If we do give and take, look at government purse and know that this purse has been badly depleted, make some concession, it will be in the interest of Nigeria.”

NLC President, Mr Ayuba Wabba, had earlier said that the organised labour would continue to be open minded and would keep up with the principles of collective bargaining.

“We on this side of the table we are ready to ensure that we bring the entire process to a conclusion.

“In the normal practice of Collective Bargaining, you look at issues from both sides, you look at the situation with workers, vis a viz their pockets and what will make the workers happy and very productive.

“If wishes were horses, we would have wished that this entire negotiation was concluded yesterday.” 

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Banking & Finance

Investors Lose N132bn As Dangote Sugar, PZ Cussons Nigeria lead Losers table

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Investors Lose N132bn As Dangote Sugar, PZ Cussons Nigeria lead Losers table

The stock market recorded a downturn, resulting in a loss of N132 billion in investors’ wealth on the Nigerian Exchange Ltd. (NGX).

This negative trend was primarily driven by sell-offs in Tier-one banking stocks, such as Zenith Bank, FBN Holdings, and United Bank of Africa.

Apart from Tier-one banking stocks, Wema Bank, Sterling Bank, FCMB, Dangote Sugar, and PZ Cussons, among others pulled down the market on a negative note.

Consequently, the market capitalisation of the NGX declined to N55.132 trillion from N55.264 trillion, marking a decrease of N132 billion.

The All-Share Index also dropped by 0.24 per cent, losing 235 points to settle at 97,473.98 from an opening of 97,708.74.

Year-to-date (YTD) figures fell to 30.36 per cent, reflecting the overall negative sentiment prevailing in the market.

However, the market breadth closed positive with 22 gainers and 20 losers.

LearnAfrica and Tantalizers led the gainers’ table by 10 per cent each, closing at N3.63 and 55k per share, respectively.

McNichols Plc followed closely with a gain of 9.89 per cent, while Regency Alliance Insurance and Cutix advanced by 9.38 per cent and 8.33 per cent, respectively.

On the flip side, Dangote Sugar, PZ Cussons Nigeria, and The Initiates Plc experienced the biggest losses, each dropping by 10 per cent to close at N40.50, N22.50, and N2.25 per share, respectively.

NEM and Caverton also saw significant declines of 9.66 per cent and 9.55 per cent, respectively, closing at N9.35 and N1.24 per share.

The trade turnover settled 48.90 per cent lower than the previous session.

A total of 306.60 million shares valued at N5.81 billion were transacted in 7,951 deals, in contrast to 439.10 million shares valued at N11.38 billion in 8,607 deals traded on Monday.

Access Corporation led the activity chart in volume with 33.23 million shares valued at N575.59 million.

GTCO followed to lead the chart in value chart with 32.25 million shares worth N1.36 billion.

Nigerian Breweries sold 27.46 million shares worth N631.76 million and UBA traded 22.52 million shares valued at N519.50 million.

Also, Royal Exchange Plc transacted 19.46 million shares worth N10.18 million. 

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Banking & Finance

Sell-offs In Airtel, Others Drag Market Capitalisation Down By N500bn

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Investors Lose N132bn As Dangote Sugar, PZ Cussons Nigeria lead Losers table

 …Airtel Africa leads the losers’ table!

Opening the week, the Nigerian Exchange Ltd. (NGX) market capitalisation on Monday dropped by 0.89 per cent to close at N55.823 trillion.

Specifically, the market capitalisation declined by N500 billion or 0.89 per cent to close at N55.823 trillion as against N56.323 trillion recorded on Friday.

The All-Share Index, which opened at 99,587.25, also shed 0.89 per cent or 884 points to close at 98,703.68.

As a result, the Year-To-Date (YTD) slipped to 32 per cent.

Sell-offs in Airtel Africa, Transnational Corporation, Stanbic, Nigerian Breweries and Nigerian Aviation Handling Company(NAHCO), among other declined equities, pulled the market down.

However, market breadth closed positive with 39 gainers and 18 losers on the floor of the Exchange.

On the gainers’ table, Cornerstone Insurance and Guinea Insurance led by 10 per cent each to close at N1.98 and 33k per share, respectively.

NASCON and Oando Plc rose by 9.94 per cent each to close at N47 and N9.95, while Wema Bank went up by 9.24 per cent to close at N7.55 per share respectively.

On the other hand, Airtel Africa led the losers’ table by 10 per cent to close at N1,980, and Berger Paints trailed by 9.85 per cent to close at N12.35 per share.

Industrial & Medical Gases shed 9.82 per cent to close at N12.40, International Energy Insurance dropped 9.35 per cent to close at N1.26, while International Breweries declined by 9 per cent to close at N4.35 per share.

Also, the analysis of the market activities showed that trade turnover was higher than the previous session, with the value of transactions up by 26.10 per cent.

Investors traded a total of 421.73 million shares valued at N8.95 billion in 10,624 deals, compared to 446.57 million shares valued at N7.10 billion, exchanged in 9,297 deals posted in the previous session.

Access Corporation led the activity chart in volume and value with 98.24 million shares worth N1.76 billion, United Bank of Africa(UBA), followed by 40.39 million shares valued at N1.07 billion.

Guaranty Trust Holding Company (GTCO) sold 35.90 million shares valued at N1.49 billion, while Universal Insurance transacted 30.39 million shares worth N11.39 million.

Also, Zenith Bank traded 26.90 million shares worth N982.15 million.

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Banking & Finance

MTN, Zenith, FBN Stocks Lift Market Capitalisation By N196bn

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Investors Lose N132bn As Dangote Sugar, PZ Cussons Nigeria lead Losers table

 …Dangote Sugar leads the Losers Table 

Renewed demand for MTN Nigeria, alongside Zenith Bank and FBN Holdings, among other leading stocks on Tuesday, pulled the Nigerian Exchange Ltd. (NGX) market capitalisation up by 0.35 per cent.

Recovering from previous session losses, the market capitalisation, which opened at N55.357 trillion, gained N196 billion or 0.35 per cent, to close at N55.553 trillion.

Consequently, the All-Share Index rose by 0.35 per cent or 346 points to close at 98,225.63, in contrast to 97,879.94 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 31.36 per cent.

Market breadth also closed positive with 28 gainers and 18 losers on the floor of the Exchange.

On the gainers’ table, CAP Plc, LearnAfrica, Nigeria Aviation Handling Company and UACN led by 10 per cent each to close at N28.60, N3.30, N36.30 and N14.85 per share, respectively.

Conoil followed closely by 9.96 per cent to close at N99.95 per share.

On the other side, Dangote Sugar led the losers’ table by 9.95 per cent to close at N38.90, and Computer Warehouse Group trailed by 9.85 per cent to close at N5.05 per share.

Vitafoam Nigeria shed 9.81 per cent to close at N17, Honeywell Flour declined by 9.74 per cent to close at N3.15 and UPL lost 9.60 per cent to close at N2.26 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 193.52 per cent.

A total of 552.21 million shares valued at N14.92 billion were exchanged in 9,350 deals, as against 277.24 million shares valued at N5.08 billion, exchanged in 8,714 deals traded previously.

GTCO led the activity chart in volume and value with 245.46 million shares worth N7.95 billion, FBN Holdings followed by 45.47 million shares valued at N1.09 billion.

Access Corporation transacted 42.87 million shares valued at N727.96 million, Transnational Corporation sold 36.08 million shares worth N502.35 million and United Bank of Africa(UBA) traded 22.45 million shares worth N537.74 million.

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