Nigeria could escape the $9.6 billion awarded against it in the case with Process & Industrial Development on the condition that the country deposits $200 million within the next 60 days, a British court has said. The court granted Nigeria a stay of execution of the arbitral award on Thursday. Abubakar Malami, attorney-general of the federation and Godwin Emefiele, governor of the CBN, led a delegation of senior government officials to the UK to seek a legal solution to the matter on Sunday, where the country had asked for permission to appeal against the enforcement of the judgement which has been granted. It also asked for a stay of execution of the arbitral award and this has been granted with the condition that $200 million be deposited within 60 days. The country had also built up a case against P&ID, where the Federal High Court in Abuja convicted representatives of the company of economic sabotage and ordered the forfeiture of assets linked to the firm. President Buhari had, before world leaders at the ongoing United Nations General Assembly, described the P&ID contract as a scam “attempting to cheat Nigeria.
The FG has proposed the sum of ₦9.12 trillion as the 2020 budget estimate with a deficit of about ₦2.28 trillion. The figure contained in the 2020-2022 Medium Time Expenditure Framework and Fiscal Strategy Paper sent to the National Assembly by President Buhari on Wednesday, is slightly higher than the 2019 estimate of ₦8.92 trillion. The expenditure would include grants and donor funding of ₦36.39 billion. The government also projected ₦7.17 trillion as estimated revenue from Value Added Tax and other revenues expected to fund the 2020 country’s budget. The expected revenue projection, according to the document, is ₦170.41 billion higher than that of 2019 which was ₦6.99 trillion. It showed that the ₦34.2 percent of the projection would come from oil sources while the balance would be earned from non-oil sources. The retained revenues of the 10 major Government-Owned Enterprises were considered as the aggregate FG revenue is projected at ₦7.72 trillion. Interest payment on a debt is estimated at ₦0.45 trillion while provision for Sinking Fund to retire maturing bonds to local contractors at ₦296 billion. The provisions for personnel cost and pension costs are estimated at ₦2.67 trillion and ₦586.72 billion respectively. ₦40.17 billion representing one percent of the consolidated revenue fund, has been earmarked for the Basic Health Care Provision, ₦22.73 billion for GAV/Routine Immunisation in the Service Wide Votes and ₦89.44 billion for the power reform programme. The document further explained that with the provisions, only the sum of ₦1.01 trillion, exclusive of capital in statutory transfers, is available as the amount for ministries, departments and agencies as capital expenditure.
Data from the Nigeria Extractive Industries Transparency Initiative has shown that the remittances of the NNPC to the Federation Account dropped by ₦1.59 trillion within a five-year period. The state oil firm remitted ₦2.38 trillion in 2012. This, however, dropped to ₦789 billion in 2016. An analysis of NEITI’s Fiscal Allocation and Statutory Disbursement Audit report for 2012 to 2016 showed that out of the ₦18.15 trillion total mineral revenue, the NNPC remitted ₦8.62 trillion. Other mineral revenue remittances came from the Department of Petroleum Resources, ₦3.8 trillion; and Federal Inland Revenue Service, ₦10.46 trillion. The NNPC’s remittances from mineral revenue, of ₦4.73 trillion, according to the report, were highest in 2012, while its joint venture cash calls were highest in 2014. The decrease in global oil revenues from 2015 was responsible for the decrease in mineral revenues from ₦4.68 trillion in 2014 to ₦2.89 trillion in 2015 and ₦1.65 trillion in 2016. On revenues allocation and utilisation by the Nigeria-states, the report showed that Akwa Ibom received the highest total mineral revenue of ₦873.59 billion among the nine states covered by the exercise, closely followed by Delta that received ₦713.15 billion, while Nasarawa got the lowest mineral revenue of ₦145.88 billion, closely followed by Gombe with ₦155.22 billion. Imo and Ondo states received ₦190.42 billion and ₦247.87 billion, respectively.
Nine banks listed on the Nigerian Stock Exchange have decided to reduce the size of their non-performing loans in an attempt to meet the five percent threshold prescribed by the CBN. The regulator had in August set new limits for banks and other financial institutions on the NPL to reflect on their books. The NPL limit banks are required to manage their credit risk effectively. To this end, all banks are to ensure that the level of NPLs in relation to gross loans does not exceed five per cent, the CBN said. Two of the nine banks; Ecobank and FBN Holdings, reported a reduction in their NPLs to 14.5 percent, according to their half-year ended June 30, 2019 results and accounts submitted to the NSE. The Group Managing Director of FBN Holdings, Urum Eke, had said on the NPL that despite the difficult operating environment, the bank remains resolute in delivering on guidance across key metrics including its commitment towards a single-digit NPL ratio by the end of the year, as evidenced by the reduction in the NPLs from the last quarter. Sterling Bank reported 8.7 percent NPL as at H1 2019 while Union Bank reported NPL ratio that dropped from 8.7 percent in 2018 to 7.1 percent in H1 2019.