Tuesday, January 22, 2019 2:23:23 PM- Nigerian Stock Exchange.

  Welcome rise in the FAAC distribution


The total monthly payout by the Federation Account Allocation Committee (FAAC) to the three tiers of government amounted to N701bn (US$2.29bn) in May (from April revenues). This was an increase of N63bn from the previous month. A rise in the average crude price from US$65.7/b in March to US$66.8/b, the official commentary noted, helped to boost oil export proceeds in the federation account by US$228m. This was the largest payout since June 2015, when the distribution of N924bn was boosted by a dividend of N359bn from Nigeria LNG. 

The gross statutory allocation consisted of N412bn and N201bn for mineral and non-mineral revenue respectively, compared with N361bn and N120bn the previous month. The distribution also included N83bn from VAT receipts. 

The rise in non-mineral receipts is particularly welcome as one of several clues to the health of the non-oil economy, which, we saw from the national accounts for Q1 2018, grew by just 0.8% y/y.

The figure for the previous month has been adjusted by N11bn to reflect an additional payment by the NNPC.

The commentary noted a marginal rise in the balance in the excess crude account from US$1.8bn to US$1.9bn.

We have taken the latest payout details from local media reports. The data for earlier months in the chart are drawn from the NBS. 

Latest News Headlines 

CBN mandates BDCs to access foreign exchange window thrice weekly: The Central Bank of Nigeria (CBN) has made it mandatory for all Bureau de Change operators (BDCs) operating in Nigeria to access foreign exchange from it thrice weekly. A statement from the CBN acting Director, Corporate Communications, Isaac Okorafor, stated: “All BDCs shall henceforth access forex from the CBN on Mondays, Wednesdays and Fridays. Any BDC that fails to access the forex window at least three times weekly shall have its licence reviewed by the CBN.” (Source: Guardian) 

FG saves N125bn from first-class travel ban, others: The Minister of Finance, Kemi Adeosun, on Sunday said that between 2016 and 2017, the Federal Government was able to save the sum of N125bn (US$345m) through reduction in travel allowances, sitting allowances and other recurrent expenditure such as office stationery. She said the amount was saved through the activities of the Efficiency Unit, which was set up by the ministry to reduce the cost of governance. (Source: Punch) 

Boeing meets FG over national carrier: The globally renowned aircraft manufacturer, Boeing, has met with the Federal Government to discuss the setting up of a national carrier for Nigeria. Although government did not disclose if it had chosen Boeing as its partner for setting up an airline for the country, it stated that the meeting with the aircraft manufacturer was in furtherance of its resolve to establish “a new carrier soon.” (Source: Punch) 

FROM FBNQuest Capital Limited

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