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UK inflation dips slightly to 10.5% — second drop in two months
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By Abubakar Yunus Abuja
The United Kingdom’s inflation rate dropped slightly to 10.5 percent in December 2022.
This is the second time inflation would be declining in two months, despite forecasts of a recession in the country.
In November, inflation rate fell slightly to 10.7 percent from the 41-year high of 11.1 percent in October.
UK’s Office for National Statistics (ONS), said the drop in diesel prices in the country contributed to the ease.
It further said the largest upward contributors are housing and household services (electricity, gas, and other fuels) and food and non-alcoholic beverages.
ONS added that the largest downward contribution to the change came from transport (particularly motor fuels), clothing and footwear, and recreation and culture, with rising prices in restaurants and hotels.
Meanwhile, food and nonalcoholic beverage prices, making the largest (partially offsetting) upward contributions, rose by 16.9 percent in the 12 months to December — slightly up from 16.5 percent in November.
Speaking on the inflationary movement in the country, Grant Fitzner, ONS chief economist said: “Inflation eased slightly in December, although still at a very high level, with overall prices rising strongly during the last year as a whole.”
“Prices at the pump fell notably in December, with the cost of clothing also dropping back slightly.
“However, this was offset by increases for coach and airfares as well as overnight hotel accommodation. Food costs continue to spike, with prices also rising in shops, cafes, and restaurants.”
Meanwhile, last year, the Bank of England (BoE) increased the interest rate to 3 percent amid projections of “a prolonged period” of recession in the country.
FAAC: FG, states, LGAs shared N990bn as allocation in December
By Abubakar Yunus Abuja
The Federation Account Allocation Committee (FAAC) says it shared N990.189 billion among the three tiers of government in December 2022.
The figure represents an increase of N88.136 billion compared to the N902.053 billion shared in November.
FAAC disclosed this in a communique issued at the end of its latest meeting in Abuja.
The N990.189 billion total distributable revenue comprised statutory revenue of N707.756 billion, value-added tax (VAT) of N233.277 billion, exchange gain of N24.841 billion, and N24.315 billion from electronic money transfer levies (EMTL).
FAAC said the federal government received N375.306 billion, states received N299.557 billion, while the local governments got N221.807 billion.
It added that oil-producing states received N93.519 billion as derivation, (13 percent of mineral revenue) in the same month.
For December, accordingly, the gross statutory revenue of N1.136 trillion was received, which was higher than the previous month’s.
From this amount, the commission said N31.531 billion was disbursed as the cost of collection and a total sum of N396.896 billion to transfers, savings, and refunds.
The remaining N707.756 billion was distributed as follows: federal government received N325.105 billion, states N165.897 billion; local governments N127.129 billion, while oilproducing states under the 13 percent mineral derivation got N90.625 billion.
On the allocation of the N233.277 billion value-added tax, FAAC said the federal government got N34.992 billion, states received N116.639 billion, and N81.647 billion was given to local governments.
It also disclosed that from the N24.841 billion exchange gain, N11.562 billion was allocated to the federal government and states got N5.864 billion. While the local governments received N4.521 billion, derivation under the 13 percent mineral revenue also received N2.894 billion.
FAAC added that N24.315 billion from the EMTL was distributed to the federal government (N3.648 billion), states (N12.157 billion), and local governments (N8.510 billion).
It further said petroleum profit tax (PPT), companies income tax (CIT), and value-added tax (VAT) recorded a significant increase, while import duty decreased considerably and oil and gas royalties and excise duty increased marginally.
In addition, the balance in the excess crude account (ECA) as at January 17th, 2023 stands at $473,754.57.
L-R: Vice Chairman, Troyka Holdings, Mr. Jimi Awosika; Director, Troyka Holdings, Dr. Ken Onyeali-Ikpe; Managing Director, Fidelity Bank, Mrs Nneka Onyeali-Ikpe; Group Managing Director & CEO, Halogen Group, Mr Wale Olaoye and Chairman, Halogen Group, Dr Biodun Shobanjo (OON), at a reception for Olaoye’s daughter, Oluwatoniloba and her husband, Farrel Emmans which took place in Lagos, yesterday.
Paris Club refund: Court summons Emefiele over $53m debt, fixes March 20 for hearing
By Abubakar Yunus Abuja
Afederal high court in Abuja has summoned Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) over a $53 million judgement debt arising from the Pars Club refunds.
Inyang Ekwo, presiding judge, gave the order on October 20, 2022, following an application for garnishee made by Joe Agi, a senior advocate of Nigeria who is the judgment creditor.
The court granted the application and ordered Emefiele to appear in court on Wednesday, January 18.
However, at the court session on Wednesday, the case was adjourned to March 20.
No reason was given for the adjournment.
The dispute stemmed from an alleged $70 million judgment against Linas International Ltd for the lawyer’s (Joe Agi) assistance with the Paris Club refund.
Emefiele was said to have only released $17 million, leaving an unpaid balance of $53 million.
The court had on January 23, 2020, ruled that Emefiele must appear “to be examined on oath touching the means you have or have had, since the date of the said garnishee order absolute, to pay the balance of $53 million now due and payable under the said garnishee order absolute and also show cause why you should not be committed to prison for default in payment of the said sum”.
In October 2022, Agi through his counsel Isaac Ekpa and Chinonso Obasi, filed another application against Linas International, minister of finance and the CBN, seeking “an order directing the inspector-general of police to arrest Emefiele and bring him to court alongside his lawyers: Damian Dodo, Audu Anuga, all Senior Advocates of Nigeria, and Ginika Ezeoke, Jessica Iyoke, Abdullahi Afolayan, and Olayemi Afolayan”.
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By Abubakar Yunus Abuja
The National Pension Commission (PenCom) says reforms under the contributory pension scheme (CPS) have eased challenges encountered by employees.
The commission said this recently in a video message to Nigerians.
The contributory pension scheme (CPS) is an arrangement where both the employer and the employee contribute towards the payment of the worker’s pension at retirement.
In a bid to improve the sector, PenCom said it has implemented several reforms including the recovery of over N10 billion outstanding pension contribution, and the payment of outstanding pension liabilities.
The commission recently approved the increase of monthly pensions for retirees on “programmed withdrawal” under the CPS.
“The online enrollment and verification exercise, multi-fund structure, non-interest fund, retirement savings account transfer system, and data recapture exercise have eased all the challenges that contributors experience,” it said.
PenCom said it has also ensured that all pension fund administrators (PFAs) increase their share capital to at least N5 billion.
“As we speak, the total pension assets in the country has amounted to over N14 trillion and PenCom has launched the new edition of pension enhancement for retirees on programme withdrawal under the contributory pension scheme,” the commission said.
“The most exciting benefit is that [it is] not only public and civil servants will be enjoying pension in our country; private sector, traders, tailors, fashion designers, shoemakers, civil societies — almost all citizens — can enrol in the pension scheme under the micro pension plan.
“This means that everyone can begin to plan for their lives and in the future, and the national security problem will end in our country.”
PenCom further lauded the federal government for revamping the pension scheme, enjoining Nigerians to make wise use of them.
Zainab Ahmed hints at gradual removal of petrol subsidy from April 2023
By Abubakar Yunus Abuja
Zainab Ahmed, minister of finance, budget and national planning, says the federal government may begin the gradual removal petrol subsidy from April 2023.
Ahmed spoke on Tuesday during an interview with journalists on the sidelines of the World Economic Forum in Davos, Switzerland.
After an 18-month extension, the federal government plans to spend N3.35 trillion on petrol subsidy from January till June, 2023.
Speaking during the interview, the minister noted that the petrol subsidy regime must be exited as it is revenue that would have gone into the government coffers.
“Where there is not enough revenue for government to buy the refined petroleum products, we have had to borrow to buy the petroleum products. So, if we take that out, that is about N3.25 trillion. That is a significant relief, that we do not incur any more than that number that we projected for in 2023,” she said.
Asked if she felt betrayed that the petrol subsidy had not been removed despite her best efforts to ensure removal, she stressed that it was a collective decision to retain the payments.
“Betrayed? No. It was a decision that was taken as a collective, recognising the fact that due to the lingering impact of the COVID-19 pandemic, and also heightened inflation, that removal of the fuel subsidy at that time, would have increased more burden on the citizen,” Ahmed said.
She added that President Muhammadu Buhari does not want to take measures that exacerbate economic hardship in the country.
“The president does not want to contemplate a situation where measures are taken that are further going to burden the citizens. So, the decision was to extend the period from June 2022 (sic) to 18 months, beginning from January 2022,” the minister said.
“So, in June 2023, we should be able to exit. The good thing is, we hear a consistent message that everybody is saying this thing needs to go. It is not serving the majority of Nigerians.
“I listened to some of the new leaders that are campaigning for the next round of leadership in the country that are saying they will get rid of it very quickly.
“What will be safer is for the current administration to maybe at the beginning of the second quarter to start removing the fuel subsidy, because it’s more expedient if you remove it gradually, than to wait and move it all in one big swoop.
L-R: GMD/CEO, Access Corporation,Herbert Wigwe; MD/CEO, Access Bank Plc, Roosevelt Ogbonna, and executive director, African Subsidiaries, Access Bank Plc,Seyi Kumapayi, during the presentation of the Access Corporation’s 5-year Corporate Strategy (20232027) in Lagos, yesterday.
FAAC accuses NNPC of using lower FX rate for crude oil revenue
By Abubakar Yunus Abuja
The Federation Account Allocation Committee (FAAC) has accused the Nigerian National Petroleum Company (NNPC) of using an exchange rate lower than the Central Bank of Nigeria (CBN) official rate for the sale of domestic crude oil between 2015 and 2022.
The committee said this in a report signed by Kabir. M. Mashi, chairman of its post mortem subcommittee (PSMC).
The report was presented the sub-committee at FAAC’s monthly plenary meeting held on Tuesday, January 17, 2023.
The FAAC sub-committee said it observed some underpayments of N185.45 billion to the federation account as a result of the low exchange rate applied by the NNPC.
“On the exchange rate application by NNPC on domestic crude, FIRS PSC crude and NUPRC royalty crude sale values, the sub-committee observed some under payments of N185,458,842,270.76 to the federation account as a result of NNPC using exchange rate lower than the CBN official rate on domestic crude sale for the period 2015 to 2022,” the report reads.
FAAC also said the CBN has confirmed that “NNPC did not use the rate advised” by the bank.
It added that the national oil firm has not yet responded to the matter after “several months of being given the analysis to review”.
“Despite the concerns of FIRS, NUPRC and other stakeholders, NNPC Limited has continued to use a different exchange rate in remittances to the federation account till date,” the committee.
Consequently, the FAAC subcommittee recommended that the plenary should take a decision on the appropriate exchange rate to be used by NNPC Limited on remittances to the federation account going forward to avoid underpayments to the federation account.
It also said the plenary should engage a third party forensic auditor to validate the established underpayments to the federation account by NNPC.
Meanwhile, in a related development, the FAAC subcommittee said it also observed that within the post-mandated period, the issue of nonapplication of mandated rates by CBN for the months of March, April, and May 2020 resulted in the underpayment to the forex equalisation account by N67. 1 billion.
The sub-committee said it had earlier submitted its report to FAAC and awaits its investigation with CBN to ascertain why mandated rates were not used in the months under reference.
