- Investors gain N155.27bn, stock market advances by 0.40%
BY BENEDICT NWACHUKWU, ABUJA
The Federation Account Allocation Committee says it disbursed N1.80 trillion to the three tiers of government in August 2023.
That is N9 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.
These were contained in the August 2023 FAAC disbursement report released by the National Bureau of Statistics.
Though the report did not give reasons for the drop, it 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 said that the Federal Government received a total of N391.93 billion, States got a total of N319.52 billion, and Local Governments got a total of 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.
DMO offers two new FGN savings bonds for subscription
Meanwhile, the Debt Management Office on Monday released the subscription process for two-year and three-year Federal Government bonds for October with an interest rate of up to 13.4 percent.
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 6 to 10, 2023.
The bonds will mature on November 15, 2025, and November 15, 2026, for the two-year and three-year bonds respectively.
The statement read, “Under the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 DEBT MANAGEMENT OFFICE on behalf of the FEDERAL GOVERNMENT OF NIGERIA Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria saving bonds.”
The interest rate for the two-year bonds stands at 12.464 percent per annum, while the three-year bonds offer an interest rate of 13.464 percent per annum.
The statement also specified the settlement date for both bond offerings as November 15, 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.”
FGN bonds are fully backed by the Federal Government of Nigeria.
The DMO advised interested investors to contact stock brokerage firms listed as authorized agents by the Debt Management Office and the bonds are traded on the NGX (Nigerian Exchange Group).
Investors gain N155.27bn, stock market advances by 0.40%
Also, the Nigerian equities market opened on a positive note on Monday, extending gains from last week as the market gained 282.85 basis points despite an unfavourable market breadth.
The market’s benchmark index, the NGX All-Share Index advanced by 0.40 percent to close at 70,479.62 basis points, compared to the previous day’s gain of 0.22 percent, which closed at 70,196.77 basis points.
Consequently, the year-to-date return rose to 37.52 percent while the market capitalization gained N155.27billion to close at N38.71 trillion.
Investors show of strong interest in the shares of BUA CEMENT, SEPLAT and GTCO which gained 4.48 percent, 3.94 percent and 0.43 percent respectively, buoyed the market performance, offsetting losses in ZENITHBANK, STANBIC and UBN whose share price declined by 1.18 percent, 6.67 percent and 4.41 percent respectively.
The total volume traded declined by 4.71 percent to close at N391.01m, valued at N7.71bn and traded in 6,837 deals.
UBA was the most traded stock by volume and value, with N105.63m and N2.14bn units traded.
At the close of trading, the market recorded 27 gainers, 28 losers, and 62 unchanged. THOMASWY topped the gainers list, while ABCTRANS topped the list of losers.
UBA had the highest volume contribution with 27.01 percent, while FBNH and JAPUALGOLD followed closely behind.
On the value chart, UBA was at the top with a 27.75 percent contribution, while GEREGU and FBNH followed closely behind.
