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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

BOI To Disburse N1bn Single-digit Interest Loan To 140 Manufacturers

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The Bank of Industry (BOI) has announced plans to disburse loans of up to N1 billion to 140 manufacturing companies across Nigeria under the Federal Government’s N75 billion Manufacturing Sector Fund.

BOI Managing Director, Olasupo Olusi, made this disclosure at the bank’s inaugural annual public lecture series on Wednesday in Abuja.

He explained that the loan aimed to foster production, ensure economic growth, and boost job creation. 

“About 140 manufacturing companies will receive loans of up to N1 billion at single-digit interest rates.

“The funds under this programme have been fully allocated to successful applicants across the six geopolitical zones of the country, and disbursements have commenced.

“For transparency, the programme is working with the Manufacturers Association of Nigeria (MAN) to ensure all beneficiaries are genuine manufacturers, providing additional validation of loan applicants.”

Olusi stated that by offering low-interest loans, BOI aims to boost production, enhance job creation, and promote sustainable growth in the manufacturing industry.

According to the BOI boss, the Bank has disbursed N77.65 billion in loans to almost 1,000 MSMEs across various sectors in the country.

He noted that these interventions align with the Federal Government’s efforts to alleviate poverty and enhance food security by supporting enterprises that drive economic growth and create jobs.

Olusi restated the inauguration of the BOI PriceSense NG platform, a price intelligence dashboard providing real-time data on price trends across Nigeria.

“The platform aims to stabilise markets, protect consumers, and inform policy decisions related to food insecurity.

“We are unveiling the BOI PriceSense NG, a price intelligence dashboard and mobile app for real-time monitoring of price variations of food commodities nationwide.

“These initiatives demonstrate our commitment to impactful research, innovative solutions, and transparency in all endeavours,” Olusi said.

Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, reaffirmed the government’s commitment to drive economic growth through MSMEs, pledging improved access to financing, innovation, and policy support.

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Banking & Finance

NGX: Investors Lose N267bn, As FTN Cocoa, Caverton Lead Gainers Table

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NGX: Investors Lose N267bn, As FTN Cocoa, Caverton Lead Gainers Table

The stock market, on Thursday, reversed some gains from its previous sessions, indicating a loss of N267 billion from the portfolios of investors.

Selloffs in MTN Nigeria, Oando Plc, United Bank For Africa (UBA), Fidelity Bank, and FCMB Group, alongside Cadbury and United Capital, amongst other declined stocks, drove the market to a negative terrain.

Specifically, the market capitalisation closed at N56.615 trillion, having lost N267 billion or 0.47 per cent from an opening of N56.882 trillion.

The All-Share Index also declined by 0.47 per cent or 464 points to settle at 98,523.56 points, against 98,987.42 points reported on Wednesday.

Consequently, the Year-To-Date return fell by 31.76 per cent.

However, the market breadth closed positive with 29 gainers and 26 losers.

On the gainers’ log, FTN Cocoa led 28 other advanced stocks by 9.82 per cent to close at N1.79 per share.

Also, Caverton led 25 other declined stocks on the losers’ log by 9.83 per cent to close at N2.97 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 47.44 per cent.

A total of 344.36 million shares valued at N6.61 billion were exchanged in 9,005 deals, compared to 603.31 million shares valued at N12.58 billion, traded in 9,723 deals posted in the previous session.

Meanwhile, UBA led the activity chart in volume and value with 29.18 million shares worth N756.09 million. 

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Banking & Finance

NGX: Market Cap Gains N248bn, Daar Communications, PZ Lead Losers’ Table

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NGX: Market Cap Gains N248bn, Daar Communications, PZ Lead Losers' Table

The Nigerian Exchange Ltd. (NGX) market capitalisation, on Friday, closed positive with a N248 billion gain.

Specifically, the market capitalisation added N248 billion or 0.44 per cent to its opening of N55.754 trillion to close at N56.002 trillion.

The All-Share Index also gained 0.44 per cent or 432 points to close at 97,456.62 points, against 97,025.17 points reported on Thursday.

As a result, the  Year-To-Date(YTD) return increased by 30.34 per cent.

Investors’ interest in Guaranty Trust Holding Company (GTCO), Zenith Bank, FBN Holdings, Access Corporation, Fidelity Bank, as well as Transnational Corporation, and Nigerian Breweries, among other advanced stocks, lifted the market.

The market breadth also closed positive with 33 gainers outnumbering 20 losers on the floor of the Exchange.

Flour Mill led the gainers’ chart by 9.99 per cent to close at N54.50, and Caverton followed by 9.96 per cent to close at N2.54 per share.

Ecobank Transnational Incorporated gained 9.95 per cent to close at N23.75, RT Briscoe advanced by 9.94 per cent to close at N3.65 and UPDC went up by 9.88 per cent to close at N1.78 per share.

Conversely, Daar Communications led the losers’ chart by 9.72 per cent to close at 65k, Deap Capital Management and Trust Plc trailed by 8.82 per cent to close at 93k per share.

PZ also lost 8.48 per cent to close at N15.65, Custodian dropped 8.45 per cent to close at N13, while McNichols decreased by 8.44 per cent to close at N1.41 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 18.90 per cent.

A total of 412.90 million shares valued at N6.47 billion were exchanged in 8,803 deals, in contrast to 390.55 million shares valued at N7.97 billion traded in 9,615 deals posted in the previous session.

Meanwhile, Japaul Gold led the activity chart in volume with 105.65 million shares, while FBN Holdings led in value of deals worth N1.24 billion.

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