Economy

FAAC Shares N715bn for July, Prepares New Revenue Template for NNPC, Others

Published

7 years ago

August 31, 2018

Eric

The Federation Accounts Allocation Committee (FAAC) said on Thursday a new revenue reporting template would soon be ready for the Nigerian National Petroleum Corporation (NNPC) and other members of the revenue sharing committee.

The committee also agreed to share N715 billion among the three tiers of government for July.

The Minister of Finance, Kemi Adeosun, while briefing reporters at the end of the FAAC meeting in Abuja, said she was optimistic the committee constituted to work on the new template would submit a draft before the next meeting for review.

“We are working with the Department of Petroleum Resources (DPR), the office of Accountant General of the Federation (OAGF), NNPC and all the stakeholders to develop a new template,” the minister said.

Following series of crises as a result of recurring discrepancies in the monthly revenue returns by the NNPC, which culminated in successive stalemates in FAAC meetings in April and June, President Muhammadu Buhari ordered a review of the existing revenue template.

The review, the minister said, uncovered monumental deficiencies in the reporting template used by the NNPC, as its parameters had not been updated for over a decade.

Although the post-mortem committee report from the Revenue Mobilisation Allocation & Fiscal Commission (RMAFC) was submitted to the FAAC meeting, discussions were deferred till next month.

Two months ago, she had said Mr Buhari also directed that every month, prior to FAAC meetings, the NNPC, OAGF and the Ministry of Finance should hold a pre-FAAC review meeting to reconcile figures and eliminate discrepancies in revenue returns.

The minister said the meeting, which held for the first time last Tuesday, has so far helped in clearing a lot of the grey areas in NNPC’s revenue report before the FAAC meeting.

Mrs Adeosun also announced the setting up of another committee under the chairmanship of Commissioner for Finance for Delta State to come up with rules for a rule-based credits to the excess crude oil revenue account. The committee is also to report back in the next meeting.

Meanwhile, the three tiers of government, comprising the federal, 36 states and 774 local government areas, along with the Federal Capital Territory (FCT), Abuja, shared about N714.8 billion for July.

Details of the revenue distribution contained in the FAAC secretariat report presented by the acting Accountant General of the Federation, M.K. Usman, showed gross statutory revenue at about N597.98 billion.

Further details from the report showed that the revenue received for the month was lower than the N694.67 billion collected in June by about N96.7 billion.

The report showed crude oil export sales volume of about 3.74 million barrels resulted in increased revenue from federation crude oil export by about 0.17 million barrels compared to about 3.57 million barrels exported in June.

Despite the improved revenue during the month, the report stated that production was negatively impacted as a result of shut-ins and facility shut-downs at various terminals for routine maintenance of aging facilities and repairs.

Besides, the report showed revenue from value added tax (VAT), import duty, company income tax (CIT) and oil royalty decreased, while petroleum profit tax recorded an increase.

The revenue distribution figures read by the minister showed that the federal government got about N269.8 billion, in addition to about N11.9 billion from VAT, while the state governments received N1369 billion and N38.3 billion from VAT.

The local government councils were allocated N105.5 billion, apart from N26.8 billion VAT, while the oil producing states collected N44.96 billion as 13 per cent derivation revenue for the month.

With about N25billion transfered to the excess crude oil revenue account, the minister gave the balance in the account at about $2.332 billion, while excess petroleum profit tax (PPT) account currently holds about $133 million.

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Economy

CBN Increases ATM Daily Cash Withdrawal Limit to N100k

Published

2 days ago

December 3, 2025

Eric

The Central Bank of Nigeria (CBN) has increased cash withdrawal limits on all channels to N500,000 weekly for individuals and N5 million for corporates.

Announcing the policy revision in a circular on Tuesday, the regulator pegged automated teller machine (ATM) withdrawals at N100,000 daily, with a weekly cumulative withdrawal of N500,000.

The development is a major shift from tighter cash policy measures introduced under the previous administration.

In December 2022, the central bank, under Godwin Emefiele, its former governor, had directed deposit money banks and other financial institutions to limit over-the-counter cash withdrawals by individuals and corporate entities per week N100,000 and N500, 000, respectively.

The CBN’s latest policy reversal, also removed the cumulative deposit limit, saying the fee on excess deposit “shall no longer apply”.

According to the regulator, the policies form part of efforts to moderate the rising cost of cash management, address security concerns, and “reduce the potential for money laundering associated with the economy’s heavy reliance on cash”.

The bank said the policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

However, with the “effluxion of time”, the apex bank said the need has arisen to streamline the policies’ provisions to reflect present-day realities.

“Consequently, effective January 1, 2026, the following cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide,” the circular reads.

“The cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.

“The cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporates. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.

“The special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.

“Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.

“Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.”

According to the circular, signed by Rita Sike, CBN’s director of financial policy and regulation department, said all currency denominations “may be loaded in ATMs”.

However, the CBN retained the limit on over-the-counter encashment of third-party cheques at N100,000.

“Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above”.

“Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department) as applicable:

“a . Returns on cash withdrawal transactions above the specified limit;

“b. Returns on Cash Deposits

“Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.

“The following accounts/entities are exempted from the application of sections 2 and 5 of this circular:

“i. Revenue generating accounts of federal, state, and local governments; and

ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.

The CBN also said the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies “shall no longer apply”.

Economy

CBN Retains Interest Rate at 27%

Published

1 week ago

November 25, 2025

Eric

The Monetary Policy Committee of the Central Bank of Nigeria has maintained the benchmark interest rate at 27 per cent, extending its pause on monetary tightening.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 303rd meeting in Abuja.

Cardoso said, “The Committee decided by a majority vote to maintain the monetary policy stance,” indicating that members were not yet convinced that current economic conditions warranted another reduction.

The move follows the 50-basis-point cut implemented in September 2025, the only rate reduction since the tightening cycle began under the current CBN leadership.

It also marks the fourth consecutive hold this year.

The MPC had raised rates six times in 2024 amid surging inflation and currency pressures.

The Punch

Economy

FG Stops Proposed 15% Import Duty on Diesel, Petrol

Published

3 weeks ago

November 13, 2025

Eric

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on Thursday, announced discontinuation of the planned 15 per cent duty on imported petroleum products.

NMDPRA’s Director, Public Affairs Department, George Ene-Ita, conveyed the development in a statement while warning the public to shun panic buying.

President Bola Tinubu, on October 29, approved an import tariff on petrol and diesel, a policy expected to raise the landing cost of imported fuel.

The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.

Implementation was slated to take effect on November 21, 2025.

The policy aimed to protect and promote local refineries like the Dangote Refinery and modular plants by making imported fuel more expensive.

While intended to boost local production, it is also expected to increase fuel costs, which could lead to higher inflation and transportation prices for consumers.

Experts have argued that the move could translate into higher pump prices for consumers, with some estimating an increase of up to N150 per litre or more.

In an update, however, NMDPRA said the government was no longer considering going ahead with implementing the petrol import duty.

“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in View,” the statement read in part.

Meanwhile, the NMDPRA also assured all that there is an adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold, during this peak demand period.

“There is a robust domestic supply of petroleum products (AGO, PMS, LPG, etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.

“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security,” the statement added.