FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production

Must Read

- Advertisement -

In the just concluded week, the National Bureau of Statistics (NBS), in its 2018 report tagged “Internally Generated Revenue At State Level”, revealed that Nigerian states’ internally generated revenue (IGR) – with the exception of Federal Capital Territory (FCT) – rose year on year (y-o-y) by 17.83% to N1.10 trillion in 2018, from N936.47 billion in FY 2017.

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur

Of the thirty-six states, thirty-two states grew their IGRs, especially six states which grew theirs by more than 50% in the year under review: Ondo (126.83%), Bauchi (121.79%), Imo (117.26%), Sokoto (108.03%), Niger (60.05%) and Akwa Ibom (51.73%) to N24.78 billion, N9.69 billion, N14.88 billion, N18.76 billion, N10.43 billion and N24.21 billion respectively.

The increase in their IGRs was chiefly driven by higher revenues from income sources such as Pay As You Earn (PAYE) and Ministry, Departments and Agencies (MDAs).

- Advertisement -

On the flip side, states such as Osun, Benue, Cross River and Abia recorded declines in IGR by 11.50% to N10.38 billion, 9.55% to N11.22 billion, 3.05% to N17.55 billion and 0.55% to N14.83 billion respectively in FY 2018. Further analysis of the report showed that only six states generated IGR above N40 billion: Lagos state generated the highest IGR of N382.18 billion, while Rivers, Ogun, FCT, Delta and Kano states generated N112.78 billion, N84.55 billion, N65.52 billion, N58.44 billion and N44.11 billion respectively.

However, Yobe, Kebbi, Taraba, Ebonyi, Adamawa, Ekiti, Borno, Katsina, Gombe, Nassarawa, Zamfara and Jigawa generated the least IGRs; of N4.38 billion, N4.88 billion, N5.97 billion, N6.14 billion, N6.20 billion, N6.47 billion, N6.52 billion, N6.96 billion, N7.34 billion, N7.57 billion, N8.21 billion and N9.25 billion respectively – all below N10 billion.

Meanwhile, total net Federation Accounts Allocation to states grew y-o-y by 43.40% to N2.49 trillion in FY 2018 from N1.74 trillion in FY 2017 amid increases in production and price of crude oil. According to the April edition of Opec’s Monthly Oil Market Report 2019, Nigeria’s average crude oil production increased y-o-y by 3.68% to 1.72 million barrels per day (mbpd) in 2018 from 1.66 mbpd in 2017. Also, Bonny Light’s average price per day rose to USD72.35 per barrel in 2018 from USD54.70 per barrel.

Read Also:  Wema Bank Launches Hackathon for Tech Start-ups

Given the slower growth of 17.83% in states’ IGR to N1.10 trillion against the 43.40% in net Federal Accounts Allocation to N2.49 trillion, ‘dependency multiple’, FAAC to IGR, rose to 2.26 times in FY 2018 from 1.87 times in FY 2017. Amid y-o-y increases in IGR and net Federation Accounts Allocation to the states, the states’ average total debt to gross revenue improved to 1.38 times in FY 2018 from 1.68 times in FY 2017.

- Advertisement -

The states’ total debt was N4.98 trillion in the year under review, comprising of N1.29 trillion external debt (using CBN official rate – N307.00) and N3.69 trillion domestic debt.

Total external debt in US dollars was USD4.19 billion which largely constituted Lagos state debt of USD1.43 billion (33.97%) and Edo, Kaduna, as well as Cross River, states contributing USD0.28 billion (6.58%), USD0.23 billion (5.41%) and USD0.19 billion (4.50%) respectively.

Total debt to gross income ratio of twelve states exceeded 150% at the end of FY 2018: Osun (537.41%), Cross River (414.46%), Ekiti (328.92%), Adamawa (214.81%), Bauchi (209.51%), Lagos (193.17%), Plateau (192.95%), Nasarawa (187.84%), Edo (175.86%), Imo (169.48%), Benue (164.29%), Kaduna (157.08%). However, States such as Yobe (63.24%), Jigawa (64.66%), Sokoto (69.17%), Katsina (72.77%), Ondo (82.30%) and Rivers (87.46%) recorded a lower than 100% total debt to gross income ratio.

The 43.40% increase in federally collected revenue on higher oil revenue reiterated the fact that the Nigerian economy is still dependent on oil, which is not sustainable as a strategy for sustained revenue growth. Albeit, we feel that it avails the executive arm of government, at all levels, the opportunity to diversify their revenue income.

- Advertisement -

 

Cowry Asset

- Advertisement -
spot_imgspot_img

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur

Emerging Stronger with Adaptable HR: Alight Solutions’ State of HR Transformation...

SINGAPORE - Media OutReach - 12 May 2021 - After releasing three insightful editions, we are delighted to bring to you the fourth edition of the Alight Solutions' State of HR Transformation Study in partnership with People Matters.


FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


The study, which was launched during the People Matters TechHR SEA, is themed around Emerging Stronger and sheds light on how some organisations are ahead of the curve in emerging stronger. A key finding was the positive sentiment that organisations in Asia have for the coming 12 months. Amongst them, adaptable organisations have reported that they are 1.5 times more likely to see positive growth in revenues and profits. The HR function has certainly proved its mettle in this case and shown how well it can manage disruption and guide organisations to emerge stronger.

Last year, Alight brought forward the construct of Adaptable HR as a guide to navigating the increasingly uncertain business and talent landscape in the midst of the biggest crisis faced. Exploring the anchors of adaptability in HR functions, Alight has consistently observed that HR Operating Model (interchangeably referred to as HR Service Delivery or Business Model) plays an important role in driving confidence on execution and productivity. When complemented with the right HR technology strategy, the results are amplified further.

Talking about this year's study, Vikrant Khanna (Sr. Director and Advisory Lead at Alight Solutions), exclaimed, "We are delighted to see how Adaptable HR function led organisations are recovering from the impact of the pandemic. While there is still quite a bit of uncertainty in the environment, the construct of Adaptable HR acts as a lighthouse for organisations to emerge stronger."

This year, as we continue to face new challenges and uncertainties posed by the pandemic, Alight found that organisations with Adaptable HR are emerging stronger to:


FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


Lead in being digital: Adaptable HR report twenty times the NPS on technology satisfaction as compared to market averages. This is due to the digital success enabled by leveraging HR Technology to complement the HR Operating Model. In addition, 50% of Adaptable HR have advanced along their adoption journey of robotics and cognitive technologies to drive efficiencies and improved experience for employees.

Enable shifts in the way we work: Adaptable HR functions are three times more likely to be proactive in driving institutional change, new ways of working, and adoption of work technologies. In fact, Adaptable HR functions report the use of up to 5 forms of work technologies. Factors that enabled quick adoption include investment priorities and the right efforts in helping adoption through investments in manager/ leader enablement.

Reimagine HR: Adaptable HR functions are three times more likely to succeed in delivering closer partnership with the business through their operating model and capabilities. The specific capabilities demanded in Adaptable HR functions are what sets them apart and enables the organisation to be agile by design.

Shape and deliver value: Adaptable HR functions are almost three times more confident in their HR strategy and execution. This foundation and investment priorities enables them to be better equipped to address complexities and more proactive in responding to changes.

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


The world of work too has undergone drastic transformation in these times. Adaptable HR functions have proven that HR is truly at the forefront of shaping and delivering value to stakeholders, enabling us to adopt new ways of working, and enable digital success. Throughout this report, observations were shared in terms of how Adaptable HR organisations have paved ways for new co-creations and solutions for people and organisations to emerge stronger.

Read Also:  Average Bus Journey (Intercity) Fare Rose by 41.14% YoY in December – NBS

It is an accumulation of all individual behaviour changes and the larger organisation change which leads to business success. It is no surprise that organisations with Adaptable HR functions are 1.5 times more likely to have favourable growth in revenues and profit before tax in the coming 12 months.

Shaswat Kumar (Vice President and Asia Leader, Alight Solutions) shares, "This year's findings demonstrate that Adaptable HR function led organisations are likely to succeed in their change agenda. This will enable organisations, not only to compete better, but also to deliver the right value to its constituents and shareholders."

Certainly, the future belongs to organisations that are able to continue their journey of Adaptable HR, lead transformation and emerge stronger!

The State of HR Transformation 2021, is the fourth edition of the Alight Solutions' flagship study on this subject. The study data was captured between Jan 2021 and Apr 2021 through an online survey. The insights combine data captured via a survey that saw participation from over 1,700 respondents (which were filtered down to 1,022 based on completeness and accuracy of responses), and observations of Alight Solutions in the space of HR Transformation.


About Alight Solutions

With an unwavering belief that a company's success starts with its people, Alight Solutions is a leading cloud-based provider of integrated digital human capital and business solutions. Leveraging proprietary AI and data analytics, Alight optimises business process as a service (BPaaS) to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. Alight allows employees to enrich their health, wealth and work while enabling global organisations to achieve a high-performance culture. Alight's 15,000 dedicated colleagues serve more than 30 million employees and family members.


We deliver next level transformation at alight.com


Click here to download the exclusive report now. Let's emerge stronger together!

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur
- Advertisement -
spot_imgspot_img

Latest News

Emerging Stronger with Adaptable HR: Alight Solutions’ State of HR Transformation Study 2021

SINGAPORE - Media OutReach - 12 May 2021 - After releasing three insightful editions, we are delighted to bring to you the fourth edition of the Alight Solutions' State of HR Transformation Study in partnership with People Matters.


FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


The study, which was launched during the People Matters TechHR SEA, is themed around Emerging Stronger and sheds light on how some organisations are ahead of the curve in emerging stronger. A key finding was the positive sentiment that organisations in Asia have for the coming 12 months. Amongst them, adaptable organisations have reported that they are 1.5 times more likely to see positive growth in revenues and profits. The HR function has certainly proved its mettle in this case and shown how well it can manage disruption and guide organisations to emerge stronger.

Last year, Alight brought forward the construct of Adaptable HR as a guide to navigating the increasingly uncertain business and talent landscape in the midst of the biggest crisis faced. Exploring the anchors of adaptability in HR functions, Alight has consistently observed that HR Operating Model (interchangeably referred to as HR Service Delivery or Business Model) plays an important role in driving confidence on execution and productivity. When complemented with the right HR technology strategy, the results are amplified further.

Talking about this year's study, Vikrant Khanna (Sr. Director and Advisory Lead at Alight Solutions), exclaimed, "We are delighted to see how Adaptable HR function led organisations are recovering from the impact of the pandemic. While there is still quite a bit of uncertainty in the environment, the construct of Adaptable HR acts as a lighthouse for organisations to emerge stronger."

This year, as we continue to face new challenges and uncertainties posed by the pandemic, Alight found that organisations with Adaptable HR are emerging stronger to:


FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


Lead in being digital: Adaptable HR report twenty times the NPS on technology satisfaction as compared to market averages. This is due to the digital success enabled by leveraging HR Technology to complement the HR Operating Model. In addition, 50% of Adaptable HR have advanced along their adoption journey of robotics and cognitive technologies to drive efficiencies and improved experience for employees.

Enable shifts in the way we work: Adaptable HR functions are three times more likely to be proactive in driving institutional change, new ways of working, and adoption of work technologies. In fact, Adaptable HR functions report the use of up to 5 forms of work technologies. Factors that enabled quick adoption include investment priorities and the right efforts in helping adoption through investments in manager/ leader enablement.

Reimagine HR: Adaptable HR functions are three times more likely to succeed in delivering closer partnership with the business through their operating model and capabilities. The specific capabilities demanded in Adaptable HR functions are what sets them apart and enables the organisation to be agile by design.

Shape and deliver value: Adaptable HR functions are almost three times more confident in their HR strategy and execution. This foundation and investment priorities enables them to be better equipped to address complexities and more proactive in responding to changes.

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur


The world of work too has undergone drastic transformation in these times. Adaptable HR functions have proven that HR is truly at the forefront of shaping and delivering value to stakeholders, enabling us to adopt new ways of working, and enable digital success. Throughout this report, observations were shared in terms of how Adaptable HR organisations have paved ways for new co-creations and solutions for people and organisations to emerge stronger.

It is an accumulation of all individual behaviour changes and the larger organisation change which leads to business success. It is no surprise that organisations with Adaptable HR functions are 1.5 times more likely to have favourable growth in revenues and profit before tax in the coming 12 months.

Shaswat Kumar (Vice President and Asia Leader, Alight Solutions) shares, "This year's findings demonstrate that Adaptable HR function led organisations are likely to succeed in their change agenda. This will enable organisations, not only to compete better, but also to deliver the right value to its constituents and shareholders."

Certainly, the future belongs to organisations that are able to continue their journey of Adaptable HR, lead transformation and emerge stronger!

The State of HR Transformation 2021, is the fourth edition of the Alight Solutions' flagship study on this subject. The study data was captured between Jan 2021 and Apr 2021 through an online survey. The insights combine data captured via a survey that saw participation from over 1,700 respondents (which were filtered down to 1,022 based on completeness and accuracy of responses), and observations of Alight Solutions in the space of HR Transformation.


About Alight Solutions

With an unwavering belief that a company's success starts with its people, Alight Solutions is a leading cloud-based provider of integrated digital human capital and business solutions. Leveraging proprietary AI and data analytics, Alight optimises business process as a service (BPaaS) to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. Alight allows employees to enrich their health, wealth and work while enabling global organisations to achieve a high-performance culture. Alight's 15,000 dedicated colleagues serve more than 30 million employees and family members.


We deliver next level transformation at alight.com


Click here to download the exclusive report now. Let's emerge stronger together!

FAAC Distributions to States Increase in 2018 amid Higher Crude Oil Price & Production - Brand Spur
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -spot_imgspot_img