FAAC disbursement down by N0.9 trillion in August

• DMO offers two new savings bonds for subscription
The Federation Account Allocation Committee (FAAC) disbursed N1.80 trillion to the three tiers of government in August 2023. That is N0.9 trillion lower than the N1.89 trillion it disbursed in July 2023.

This is even as the country returned N62.42 billion to the revenue generating agencies as cost of collection.

The August 2023 FAAC disbursement report released by the National Bureau of Statistics (NBS) revealed this.

Though the report did not give reasons for the drop, it however, said the amount disbursed comprised, N1.15 trillion recorded from the Statutory Account, N56.31 billion Exchange Rate Differential, N283.91 billion from Exchange Gain, N13.37 billion from Electronic Money Transfer Levy (EMTL), and N298.79 billion from Value Added Tax (VAT).

It disclosed that the Federal Government received a total of N391.93 billion, states, N319.52 billion, and local governments, N236.23 billion. The sum of N56.49 billion was shared among the oil-producing states from the 13 percent derivation fund.

The revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N15.51 billion, N39.53 billion, and N7.38 billion respectively, as cost of revenue collections.

MEANWHILE, the Debt Management Office (DMO) has released the subscription process for two-year and three-year Federal Government of Nigeria bonds for October with an interest rate of up to 13.4 per cent.

This announcement was made in a statement on the DMO’s official website. The subscription period is set to last for five days, running from November 6th to November 10th, 2023.

The bonds will mature on November 15th, 2025, and November 15th, 2026, for the two-year and three-year bonds respectively.

The interest rate for the two-year bonds stands at 12.464 per cent per annum, while the three-year bonds offer an interest rate of 13.464 per cent per annum.

The statement also specifies the settlement date for both bond offerings as November 15th, 2023, with coupon payments scheduled for February 15, May 15, August 15, and November 15.

These bonds will accrue interest payments every quarter.

The DMO outlines the units of subscription as “N1, 000 per unit, subject to a minimum subscription of N5, 000, and subsequent multiples of N1, 000, with a maximum subscription limit of N50, 000,000.”