Daily Watch – Bismarck heads minimum wage committee, Lufthansa flogs NAHCO stake

The FG, states and local governments shared ₦7.7 trillion from the federation account between January and December 2018. This means that unlike in 2017 when the revenue allocation to the three tiers of government was low, the 2018 fiscal period was comparatively rewarding despite oil production slow downs. Under the statutory allocation, the FG gets 52.68 percent, states, 26.72 percent; and local governments, 20.60 percent of the revenue shared, while the framework provides that VAT revenue be shared according to this ratio, FG, 15 percent; states, 50 percent; and LGs, 35 percent. The sum of ₦51.74bn was paid to the oil-producing states based on the 13 percent derivation principle.

The CBN plans to raise treasury bills worth ₦823.43 billion in Q1 2019. Writing in the regulator’s 2019 Treasury Bills Issue programme for the quarter, CBN governor, Godwin Emefiele said that the bills, which would be rollover, would range between three months and one year papers. They include the 91-day bills worth ₦51.46 billion, 182-day bills of ₦164.92 billion and 364-days bill worth ₦607.05 billion. ₦985.93 billion worth of treasury bills would also mature at the same period, Emefiele said. A breakdown of the debt instrument showed that while a total of 91-day bills valued at N50.977 billion would be auctioned; N178.843 billion of 182-day bills, a total of N678.059 billion of 364-day instrument would be auction in the said period.

Lufthansa has sold off its 6 percent stake in the Nigerian Aviation Handling Company to Godsmart Nigeria. Lufthansa had a total of 97,453,125 ordinary shares of NAHCO, which have now been transferred to Godsmart upon completion of the deal, making Godsmart a major shareholder of NAHCO. Godsmart now controls 26.95 percent of the issued and paid up share capital of the ground holding company. However, the value of the transaction between Lufthansa and Godsmart was not disclosed.

Bismarck Rewane, has been chosen by President Buhari to head the technical advisory committee on the implementation of the national minimum wage. The committee was also asked to identify new revenue sources, as well as areas of existing expenditure from where some savings could be made in order to fund the wage increases without adversely impacting the nation’s development goals as set out in the Economic Recovery and Growth Plan. According to the President, the work of the committee will be the basis of a Finance Bill to be submitted to the National Assembly, alongside the Minimum Wage Bill.