A small decline in the FAAC distribution
The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N636bn (US$2.08bn) in February (from January revenues). This was a decrease of N19bn from the previous monthly distribution. The commentary of the accountant-general of the federation, cited in the local media, noted that oil export sales in the month declined by US$114m although the average price of crude picked up from US$56.8/b in December to US$57.7/b.
- In terms of revenue streams, the inflow from both VAT and oil royalties was significantly higher while that from companies’ income tax and petroleum profits tax declined on the month. There was a marginal increase in the take from import duty.
- The gross statutory allocation consisted of N405bn and N134bn for mineral and non-mineral revenue respectively.
- From our chart we can see a broad upward trend in the distribution over the past 12 months. It is far from spectacular, however, and largely reflects the pick-up in crude oil production since Q1 2017. What is missing is evidence of a turnaround in the non-oil economy.
- When the economy was still in robust growth mode in 2014, a distribution at this level would have been a poor month.
FG set to unveil initiatives to boost economy’s growth: The Minister of Trade and Investment, Okechukwu Enelamah, at the weekend disclosed the resolve of President Muhammadu Buhari to reposition the economy in 2018 with the planned launch of key growth initiatives next month. (Source: Thisday)
FG, World Bank in discussion for US$1bn power loan: The Federal Government and the World Bank are in the final stage of negotiation for the release of US$1bn performance-based loan for Nigeria’s Power Sector Recovery Programme. (Source: Punch)
IEA: Nigeria’s higher crude oil output balanced OPEC production in January: The International Energy Agency (IEA) has said improved crude oil output in Nigeria made up for the losses recorded by some OPEC member countries to steady production month-on-month at 32.16mb/d in January. (Source: Thisday)