CBN APPROVES LICENCE FOR DBN
The Central bank of Nigeria has approved the grant of a Wholesale Development Finance Institution Licence with national authorization to the Development Bank of Nigeria (DBN) Plc, the Minister of Finance, Mrs. Kemi Adeosun has confirmed.
The approval was conveyed in a letter addressed to the Managing Director/Chief Executive of Officer of DBN dated March 28, 2017. The letter was signed by the Deputy Governor of the CBN in charge of Financial System Stability. The approval was subject to meeting the minimum capital requirement of N100 billion and the reconstitution of the Board of the Bank and reviewing its organogram.
The DBN, was conceived in 2014 however, its take-off had been fraught with delays. The President Muhammadu Buhari led administration inherited the project with a determination to resolve all outstanding issues and set a target of 2017 for its take-off.
It could be recalled that the Minister of Finance said that the DBN will have access to US$1.3bn (N396.5 billion) which has been jointly provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency). The Bank was also finalising agreements with the European Investment Bank (EIB).
She also stated that the DBN, will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).
As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs. The MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of Nigeria but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).
The Federal Government expects that the influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans, will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements, and acquire equipment or supplies.
UPDATE ON WHISTLEBLOWER PROGRAMME (as at 24th March, 2017)
I. TOTAL COMMUNICATION RECEIVED – 2,251
Communication includes enquiries, tips, compliments and general advice from the public.
a. Website (www.whistle.finance.gov.ng) – 95
b. Calls – (09098067946) – 1,550
c. SMS – 412
II. TOTAL NUMBER OF TIPS RECEIVED – 282
a. Tips received through Calls – 49
b. Tips received through SMS – 87
c. Tips received through Website – 95
d. Tips received through E-mail – 51
III. ACTIONABLE TIPS RECEIVED – 154
Some of the tip types include:
i. Contract Inflation and Conversion of Government Assets to Personal
ii. Ghost workers
iii. Payment of unapproved funds
iv. Embezzlement of salaries of terminated personnel
v. Improper reduction of financial penalties
vi. Diversion of Funds meant for distribution to a particular group of
vii. Diversion of funds to personal commercial Bank Accounts to earn
viii. Non-Remittance of Pension & NHIS Deductions
ix. Failure to Implement projects for which funds have been provided
x. Embezzlement of funds received from Donor agencies
xi. Embezzlement of funds meant for payment of Personnel emoluments
xii. Violation of TSA regulations by keeping funds in Commercial banks
xiii. Violation of FIRS (VAT) regulation by adjusting Value Added Tax
xiv. Non-procurement of equipment required for Aviation Safety
xv. Money laundering and Diversion of funds meant for approved projects
xvi. Illegal Sale of Government Assets
xvii. Diversion of Revenue (IGR)
xviii. Financial misappropriations (embezzlement)
xix. Concealed bailout funds
xx. Mismanagement of Microfinance banks
xxi. Illegal Recruitments
FG, STATES, LGs SHARE N429.127 BILLION AS FEBRUARY 2017 ALLOCATION
The Federal Government, States and Local Government Councils have shared a total of N429.127 billion federal revenue generated for the month of February 2017. The N429.127 billion was lower than the N465.149 shared in January by N36.022 billion.
A communiqué read by the Chairman of the Federation Account Allocation Committee (FAAC), the Minister of Finance, Mrs. Kemi Adeosun, showed that the gross statutory revenue of N290.163 billion was received in February 2017. This was lower than the N324.990 received in January 2017 by N34.827.
The distributable statutory revenue for the month was N258.692 billion. The sum of N6.330 billion was refunded by NNPC and N60.899 billion was available from the Excess PPT Account. There was also the exchange gain of N40.329 billion. These, together with the revenue from the Value Added Tax, made up the total distributable revenue for the month.
She announced that from the distributable statutory revenue of N258.692 billion, statutory deductions were made to the FIRS, NCS and DPR, resulting in net statutory revenue of N246.390 billion. From this amount, the federal government got N117.581 billion (52.68%) against the N133.192 billion it got in January. The States got N59.639 billion (26.72%) as against N67.557 billion they got in the previous month and the Local Governments got N45.979 billion (20.60%) and against N52.083 billion in the previous month. The oil producing states got N23.191 billion as 13 % derivation revenue as against N20.620 billion they got in January.
For the month of February 2017, the gross revenue available from the Value Added Tax (VAT) was N69.207 billion as against the N73.522 billion in the previous month, resulting in a decrease of N4.315 billion. From this amount, the Federal Government got N9.966 billion (15%) as against N10.587 billion the previous month, State Governments got N33.220 billion (50%) as against N35.291 billion the previous month and Local Governments got N23.254 billion (35%) as against N24.703 billion the previous month.
The Minister said that there was revenue increase of $4.06 million in federation export sales due to a rise in Crude Oil export volume by 0.30 million barrels, although average price of Crude Oil fell from $49.57 to $44.74 per barrel during the period under review. There were also significant decreases in revenues from Petroleum Profit Tax (PPT), Companies Income Tax (CIT), as well as Import and Excise Duties and Oil Royalty.
2016 Budget: Capital Releases to MDAs reach the N1trillion mark
Capital releases to Federal Ministries, Departments and Agencies (MDAs) for the 2016 budget, have reached a record N1 trillion, the highest ever budgetary releases in Nigeria’s annual funding for capital projects, Minister of Finance, Mrs. Kemi Adeosun has revealed.
“So far, N1 trillion has been released on capital and this is the highest so far in the history of this country. With the current stability in oil price and the return of normalcy in Niger Delta, I am sure we will do more this year (2017),” she said.
The Minister disclosed the figure in an interactive exchange with members of the House of Representatives Tactical Committee on Recession in her office in Abuja.
The amount was released for various projects including the commencement of the construction of a dual standard railway line that would link Lagos and Kano, rehabilitation of roads, expanding irrigation facilities to boost agriculture and the upgrading of aviation infrastructure throughout the country.
She said that the components of the releases include aggregate releases to the MDAs of N870, 055, 792, 283.00 billion as at the end of February 2017 and additional releases of N65, 393, 920, 000 . Others were Manual Authority to Incur Expenditure (AIEs) in February 2017 in the sum of N11, 179, 173, 711.42 and an additional Manual AIEs worth N45, 804, 709, 077.20 as at March 13, 2017. Mrs. Adeosun noted that the overall capital releases totalling N992, 433, 595, 071.42 have made impact on the Nigerian economy, by creating jobs, stimulating economic activities in communities and upgrading infrastructure, thereby improving the wellbeing of Nigerians.
The Minister pointed out that contractors returning to project sites around the country have employed workers, contributed to economic growth and improved the wellbeing of Nigerians in line with the strategic objectives of the administration of President Muhammadu Buhari.
The Minister emphasised: “We are determined to transform the economy and this is why we are focused on capital expenditure. If we have our rail, road and power, then we will be able to generate jobs and prosperity.”
It could be recalled that in the Federal Government's drive to devote more resources to capital projects, especially the upgrading of the country's infrastructure, the Federal Executive Council at its meeting on March 22, 2017 approved the reconstruction of 12 more major highways across the country at the contract sum of N80 billion.
FG LAUNCHES ACCOUNTING SOFTWARE TO ENHANCE ACCOUNTABILITY, FISCAL AND FINANCIAL DISCIPLINE
As part of ongoing measures to improve Public Financial Management across all levels of Government, the Federal Government has developed an IPSAS Compliant accounting software suite “OneBook”, aimed at enhancing efficiency, accountability, and transparency.
The OneBook suite offers a complete solution that allows for standardization and seamless exchange of information across all tiers of Government by providing a unified accounting and reporting solution across key areas: Government expenditure, financial, treasury and receipts management.
The adoption of the platform will help to achieve cost savings as it ensures the application of controls and standards across spending agencies for recording, processing and releasing payments.
Introduction and compliance with IPSAS also formed part of the conditions included in the Fiscal Sustainability Plan for State Governments.
The software package, which was launched at the Federation Account Allocation Committee (FAAC) meeting for March 2017, is capable of capturing various revenue types and would impact the entire financial operations from budgeting, through revenue and expenditure management to final accounts.
Minister of Finance, Mrs. Kemi Adeosun, said the software will be made available to all States and Local Governments to support their accounting and reporting processes. States that are yet to convert to IPSAS accrual accounting will be able to use this suite as it guarantees IPSAS accrual compliance.
The Minister said the software is fully compliant with International Public Sector Accounting Standards (IPSAS) and will enhance Public Sector Financial Management, Analysis and Performance Reporting.
OneBook software captures data once, thereby eliminating redundant data processing and also provides a single source of truth on government budget, appropriation, allocations, releases, obligations and expenditure.
The advanced software is an initiative of the Federal Government through the Ministry of Finance.