FAAC allocation down slightly by 0.48% to N601.1bn

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The Federal Account Allocation Committee (FAAC) disbursed a sum of N601.1bn to the three tiers of government in December 2020. This represents a marginal decline of 0.48% (N2.9bn) compared to the amount shared in November.

This has had no impact on money supply growth. Average FAAC allocation in 2020 is now N644.53bn, 4.24% lower than the 2019 average of N673.07bn. The drop in allocation was largely due to a sharp fall in company income tax (CIT).

Local Bourse Kick-Start December on a Positive Note, Gain 0.30% to Sustain Uptrend
Afolabi Sotunde Illustration Naira

Its impact was, however, cushioned by substantial increases in petroleum profit tax, import duty, excise duty, and oil and gas royalties. Gross statutory revenues, which accounted for approximately 73% of total disbursement, increased by 15.42% to N436.46bn while VAT rose by 23.98% to N156.79bn.

Forex equalization revenue amounted to N7.87bn. The balance in the excess crude account was $72.41mn as of December 16.

Analysis

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The sharp drop in CIT could be partly attributed to the effects of COVID-19 on corporate revenues and margins. With the renewed spike in infections, the government is likely to enforce renewed restrictive measures, including a precision lockdown.

This means that CIT could decline further in the coming months. Unemployment is also likely to continue to climb (above 35%) as companies’ lay-off staff to reduce operating expenses.

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FAAC allocation down slightly by 0.48% to N601.1bn - Brand SpurFAAC allocation down slightly by 0.48% to N601.1bn - Brand Spur

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FAAC allocation down slightly by 0.48% to N601.1bn - Brand SpurFAAC allocation down slightly by 0.48% to N601.1bn - Brand Spur

Latest News

Securing Payments in Asia: Omise Integrates the EMV 3DS 2.2 Protocol Using Netcetera’s 3DS Server

Securing payments in Asia with latest 3-D Secure technology - Omise integrates the EMV(R) 3DS 2.2 protocol using Netcetera's 3DS Server

 

ZURICH, SWITZERLAND and SINGAPORE - EQS Newswire - 27 January 2021 - 

Securing payments in Asia with latest 3-D Secure technology
Omise integrates the EMV 3DS 2.2 protocol using Netcetera's 3DS Server


The Payment Service Provider Omise has implemented the Netcetera 3-D Secure Server to secure online payment transactions in the APAC region. Netcetera, a market leader for digital payment solutions, offers certified products for 3DS payment processing, and promotes secure and frictionless consumer authentication. With the go-live beginning of January 2021, Omise is among the first PSP customers to implement the latest EMV(R) 3DS 2.2 protocol, enabling them to increase the approval rates and reduce fraud.

PSPs, merchants and acquirers need to reduce the risk for non-authenticated transactions, associated refunds and lost revenue, while at the same time establishing a frictionless flow and improving the cardholder experience during online shopping. Finding the right balance of serving both security and convenience is a challenge.


To successfully address this challenge, Omise decided to implement the network-certified and PCI-ready Netcetera 3-D Secure Server on premise solution. They are among the first PSPs to implement the 3DS server with the latest protocol EMV 3DS 2.2. Jatuporn Pinnuvat, Head of Product Innovation at Omise, says: "After a thorough evaluation and investigation of different suppliers and products, we decided on Netcetera with their flexible, agile and independent payment offering. We consider their 3DS server as the most reliable and viable product to support secure and convenient transactions. The implementation was smooth and efficient, and we were able to save a lot of time and effort thanks to the comprehensive technical documentation, educational webinars and Netcetera's professional support."

Read Also:  Local Governments Received N126.28bn From FAAC Allocation in May 2019 – NBS


With their strong presence, providing service to thousands of merchants in the APAC region, Omise is a major player in the payment industry, and drives security and convenience of online payments together with Netcetera. Kiril Milev, Managing Director of Netcetera's location in Singapore, says: "We are convinced that we can bring value to the payment industry with our certified and state-of-the-art products, driving e-commerce payment forward. With this implementation at Omise, we are able to strengthen our presence in the APAC region". Ivan Ong, responsible for sales and business development in the area for Netcetera, adds: "We are committed to adapt our products to new regulations and protocols and are always among the first to be compliant. We are happy to count Omise among our customers, and as one of the first to implement our server with the latest 3DS 2.2 protocol."


Note:
EMV(R) is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.

About Netcetera

Netcetera is a global software company with cutting-edge IT products and individual digital solutions in the areas of secure digital payment, financial technologies, media, transport, healthcare and insurance. More than 2,000 banks and issuers, and 150,000 merchants rely on the digital payment solutions and globally certified 3-D Secure products of the market leader for payment security. The owner-managed company covers the entire IT lifecycle, from ideation and strategy to implementation and operation. The balanced combination of the latest technologies and proven standards ensures investment security, from large-scale projects to innovative start-ups. Founded in 1996, Netcetera is a holding company with 700 employees and is headquartered in Zurich, Switzerland, with additional locations across Europe, Asia and the Middle East.


Further information: netcetera.com

About Omise

Established in 2013, Omise is a payments platform which provides businesses with a modern end-to-end infrastructure to accept, process and disburse payments online. Working with Omise, merchants have access to powerful payment tools, comprehensive risk management solutions, as well as connection to card networks and consumers' preferred payment methods. Omise enables revenue growth and seamless payment experiences across online, in-store and in-app.


Omise is present in Thailand, Japan and Singapore. The company is the payments platform of choice for thousands of brands today.

Further information: omise.co

FAAC allocation down slightly by 0.48% to N601.1bn - Brand Spur

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