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Tag: Federal Ministry of Finance

  • FAAC: FG, Sub-nationals share N1.424 trn December 2024 revenue

    FAAC: FG, Sub-nationals share N1.424 trn December 2024 revenue


    In all, the Federal Government, states, and Local Government Councils (LGCs) have received N 1.424 trillion from the Dec. 2024 Federation Account Revenue.

    This is according to a statement by Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF).

    Mokwa said that the revenue was shared at the January Federation Account Allocation Committee (FAAC) meeting on Friday in Abuja.

    Meanwhile, a communiqué from the FAAC meeting said that the N1.424 trillion total revenue comprised statutory revenue of N386.124 billion, and Value Added Tax (VAT) revenue of N604.872 billion.

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    It also comprised Electronic Money Transfer Levy (EMTL) revenue of N31.211 billion and Exchange Difference revenue of N402.714 billion.

    The communiqué indicated that total gross revenue of N2.310 trillion was available in Dec. 2024.

    It said that total deduction for cost of collection was N84.780 billion while total transfers, interventions, and refunds were N801.175 billion.

    “Gross statutory revenue of N1.226 trillion was received for Dec. 2024. This was lower than the sum of N1.827 trillion received in of Nov. 2024 by N600.988 billion.

    “Gross revenue of N649.561 billion was available from VAT in Dec. 2024. This was higher than the N628.973 billion available in Nov. 2024 by N20.588 billion,” it said.

    The communiqué said that from the N1.424 trillion total distributable revenue, the Federal Government received the total sum of N451.193 billion, while the state governments received the sum of N498.498 billion.

    It said that the LGCs received N361.754 billion, and a total sum of N113.477 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

    “On the N386.124 billion statutory revenue, the Federal Government received N167.690 billion, and the state governments received N85.055 billion.

    “The LGCs received N65.574 billion, and the sum of N67.806 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

    “From the N604.872 billion VAT revenue, the Federal Government received N90.731 billion, the state governments received N302.436 billion and the LGCs received N211.705 billion,” it said.

    It further said that a total sum of N4.682 billion was received by the Federal Government from the N31.211 billion EMTL.

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    It said that the state governments received N15.605 billion, and the LGCs received N10.924 billion.

    “From the N402.714 billion Exchange Difference revenue, the communiqué said that the Federal Government received N188.090 billion, and the state governments received N95.402 billion.

    It said that the LGCs received N73.551 billion, while the sum of N45.671 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

    It said that in Dec. 2024, VAT and EMTL increased significantly while Oil and Gas royalty, CET levies, excise duty, import duty, petroleum profit tax and companies income tax decreased considerably.

  • VAT remains 7.5%, not increased – Wale Edun

    VAT remains 7.5%, not increased – Wale Edun

    Finance and Coordinating Minister of the Economy, Wale Edun, has affirms that the rate of VAT stays at 7.5% not 10% as speculated in some media reportage.

     

    Edun, in a statement he personally signed on Monday, September 9, emphatically affirmed that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

     

    The statement reads: “The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

     

    “The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.

     

    “Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth reduces poverty as well as makes businesses flourish.

     

    “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

     

    “In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

     

    “For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able.”

     

     

  • 100 Sacked Staff Sue Nigeria’s Central Bank

    100 Sacked Staff Sue Nigeria’s Central Bank

    …Claim Damages
    About 100 sacked staff of the Central Bank of Nigeria (CBN) have sued the apex bank at the National Industrial Court seeking payment for damages.
    About 200 staff of the CBN were sacked in May, by the Yemi Cardoso administration as part of the bank’s re-organization strategy.
    The sacked staff are, among other things, seeking full payment of their monthly salaries, allowances and all other financial benefits they should have been entitled to if they were still in the employment of the bank, from the time their employments were terminated to the time they should have retired from the apex bank.
    The former CBN staff’s Lead Counsel, Ola Olanipekun (SAN), on Thursday, made the court documents available to select journalists in Jos, Plateau State.
    Olanipekun stated that the sacked staff approached the court to enforce their right to fair hearing as workers who had been unjustly sacked by CBN.
    According to Arise TV, the sacked staff’s lead counsel said, “the unlawful action of the apex bank has caused monumental damages to his clients running into hundreds of millions of Naira, adding that they are praying the court to ensure that the defendant pay all the claimants their monthly salaries, allowances and other emoluments/entitlements.”
    Olanipekun added that “one of his clients who still has nine years of service left with the Bank would have earned, if his employment had not been unlawfully terminated, a sum of ₦1,621,455.70 monthly as evidenced by his salary payment, and such other monies in that regards as his current or subsequent promotion position/grades would be entitled.
    “He is praying for an order of the court to ensure that the defendant pays forthwith, all monthly salaries and allowances that the claimant would have earned in the course of his service/employment, being the sum of ₦178, 360,127.00 or such other sums in that regard, from the effective date of unlawful termination of his appointment up and until his due date of lawful retirement on 4th August, 2033.
    “The counsel said that the claimant is also praying the court to ensure that the sum of N100,000,000 million is paid to him as General Damages against the defendant, for wrongful termination of his contract of employment.
    “The sum of ₦30,000,000.00 as the cost of litigation/prosecuting the suit is also demanded from the defendant with 21 percent post-judgment interest, per annum, on all judgment sums awarded, from the date of judgment until the entire judgment sum is wholly defrayed/liquidated as well as further orders as the court may deem fit to make in the circumstances of the case.”
    Olanipekun explained that the Originating Summons dated 22 August 2024, is supported by a 27 paragraphs affidavit deposed to by the Claimant himself.
  • Court hears suit against seizure of Arik Aircrafts, properties August 5

    Court hears suit against seizure of Arik Aircrafts, properties August 5

    A Federal Capital Territory (FCT) High Court, Wednesday fixed August 5, for hearing in a suit seeking to stop the seizure of the aircraft and other properties belonging to ArikAir Limited over $2.5 million indebtedness.

    The Asset Management Corporation of Nigeria (AMCON) brought the motion on notice to the High Court sequel to Monday’s seizure of Arik aircraft and other assets by the Atlas Petroleum International Ltd and its sponsor.

    AMCON is seeking to stop the continued seizure of the Arik Airlines properties on the grounds that the airline was already under another receivership following its indebtedness to Zenith Bank Plc to the tune of N37.0 billion.

    However, Justice Iheme Nwosu, could not proceed with hearing and determination of the AMCON’s suit against the seizure of the aircraft following the discovery that the Deputy Sheriff was not served with the motion as required by law.

    Deputy Sheriffs are officials of high courts who enforce and execute judgement of courts as stipulated by law.

    Justice Nwosu subsequently fixed August 5 and 12 for hearing of the AMCON’s motion.

    Speaking with journalists shortly after the proceedings, a Senior Advocate of Nigeria and counsel to Atlas Petroleum Limited, Sebastian Hon, confirmed that AMCON filed the motion seeking to stop the enforcement of the order against Arik Airline over its huge debt to Atlas Petroleum.

    The senior lawyer observed that while his clients were in the process of enforcement, “AMCON surprisingly, I will say came to intervene that Arik Air is under receivership when they were aware of the matter right from the Lagos High Court to the Supreme Court and the judgments were given against Arik.

    “We are going on with the enforcement as permitted by the law, we will not flout the law or any order of court but as it is, the Minister of Aviation who was served with the enforcement orders has succeeded in grounding two aircraft which are not related to the application AMCON brought to court to stop the enforcement.

    A former judge of the FCT High Court now in Court of Appeal, Justice Olukayode Adeniyi had on June 26, 2024, issued an order directing the attachment and sale of all movable properties of the Arik Air Limited found within the jurisdiction of the court.

    Consequently, the judgement creditor in enforcing the order of the court had seized aircraft, hangers, especially Boeing 737 with registration numbers: B737.700/5N-MJF, B737.800/5N-MJQ, DASH8.Q400 and 5N-BKK in satisfaction of the $2.5 million debt against the airline