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Banking & Finance

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

MTN, Zenith, FBN Stocks Lift Market Capitalisation By N196bn

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MTN, Zenith, FBN Stocks Lift Market Capitalisation By N196bn

 …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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Banking & Finance

Bank Stock Sell-Offs Make NGX Transaction Value To Drop 2.60%

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Bank Stock Sell-Offs Make NGX Transaction Value To Drop 2.60%

Bearish sentiment persisted on banking stocks at the equity market on Friday, making the value of transactions traded on the floor of the Nigerian Exchange Ltd. (NGX) down by 2.60 per cent.

Analysis of the market activities indicated trade turnover settled lower relative to the previous session.

Specifically, investors transacted a total of 257.86 million shares valued at N5.40 billion exchanged in 7,168 deals, as against 285.91 million shares worth N5.54 billion exchanged in 7,726 deals posted on Thursday.

Consequently, the market capitalisation, which opened at N56.469 trillion, shed N173 billion or 0.31 per cent to close at N56.296 trillion.

The All-Share Index also dropped 0.31 per cent or 306 points to settle at 99,539.75, compared to 99,845.91 recorded in the previous session.

As a result, the Year-To-Date (YTD) return dipped to 33.12 per cent.

Sell-offs in Guaranty Trust Holding Company (GTCO), FBN Holdings, Zenith Bank,  Access Corporation,  Stanbic IBTC Bank, Jaiz Bank, as well as United Capital and Unilever Nigeria, among other top decliners, drove the market to a negative terrain.

Meanwhile, market breadth closed negative with 20 losers and 14 gainers.

On the losers’ chart, United Bank led by 10 per cent to close at N1.62, FBN Holdings followed by 9.83 per cent to close at N24.30, Tantalizers declined by 8.57 per cent to close at 32k per share.

Deap Capital Management shed 7.35 per cent to close at 63k and Caverton went down by 6.83 per cent to close at 1.50 per share.

On the gainers’ chart, FTN Cocoa Processors led by 9.60 per cent to close at N1.37, RT Briscoe trailed by 9.26 per cent to close at 59k, and Livestock Feed gained N1.45 per share.

Royal Exchange Assurance added 8.06 per cent to close at 67k, while Consolidated Hallmark Plc rose by 7.44 per cent to close at N1.30 per share.

On the activity chart, UBA led in volume with 38.72 million shares traded at a value of N888.55 million, while GTCO led in value with 38.30 million shares worth N1.31 billion.

Access Corporation also sold 34.34 million shares worth N584.54 million, Zenith Bank traded 24.41 million shares worth N875.85 million and The Initiative Plc transacted 17.52 million shares worth N34.13 million.

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Banking & Finance

CBN Revokes Licenses Of 4,173 BDCs

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The Central Bank of Nigeria (CBN), has announced the revocation of the operational licences of 4,173 Bureaux De Change (BDCs) for failure to observe some regulatory provisions.

According to a statement issued by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi on Friday in Abuja, the move is an exercise of the powers conferred on it under the Bank
and Other Financial Institutions Act (BOFIA).

Sidi said that the list of affected BDC operators was available on the Bank’s
website.

Forex inflow: CBN tasks banks to support indigenous companies

She said that the affected institutions failed to observe at least one of the following regulatory provisions:

They are payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

Others are the rendition of returns in line with the guidelines and compliance with directives and circulars of the CBN, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

“The CBN is revising the regulatory and supervisory guidelines for BDC operations in Nigeria.

” Compliance with the new requirements will be mandatory for all
stakeholders in the sector when the revised guidelines become effective.

“Members of the public are hereby advised to take note and be guided accordingly,” she said. (NAN

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