Tag: ECA

  • Climate change threatens 83% of Africa’s jobs

    Climate change threatens 83% of Africa’s jobs

    Experts say African governments must act urgently to protect jobs and livelihoods as climate change threatens 83 per cent of Africa’s jobs and the labour market.

    The UN Economic Commission for Africa (ECA), said this in a statement on its website.

    The experts spoke at a high-level side event of the 11th Session of the Africa Regional Forum on Sustainable Development (ARFSD).

    The event was organised by the Macroeconomic Policy, Finance and Governance Division of the UN ECA.

    It focused on the findings of the Economic Report on Africa 2023 and 2024.

    Ms Nadia Ouedraogo, an Economic Affairs Officer at ECA, revealed that informal employment accounted for 83 per cent of all jobs in Africa in 2024.

    Ouedraogo said sectors such as agriculture, construction, and services sectors were highly vulnerable to climate-induced shocks.

    “Women and youth are especially at risk of job and income losses due to environmental degradation, erratic weather patterns and seasonal disruptions,” she said.

    Moderating the session, Ms Zuzana Schwidrowski, Director of the Macroeconomic Policy Division, said climate change was not only destroying livelihoods but also threatening financial and macroeconomic stability across Africa.

    “While these climate-related shocks are eroding growth and fiscal buffers, they also present opportunities for transformation through green innovation and investment,” Schwidrowski said.

    In his remarks, Mr Sam Koojo, Assistant Commissioner at Uganda’s Ministry of Finance, Planning and Economic Development, called for stronger partnerships between governments, the private sector and development partners.

    “We must collaborate, co-create solutions, and prioritise climate action that drives job creation and inclusive growth,” he said.

    Echoing the urgency, Mr Andrew Allieu, a Senior Economist with the ILO Regional Office for Africa, warned that climate change could displace millions and widen social inequalities.

    “The livelihoods of 1.2 billion workers who depend on natural resources are at risk.

    ”Heat stress alone is already causing a 2.3 per cent loss in working hours and that could translate to 14 million jobs lost by 2030,” he said.

    Mr Etienne Espagne, Senior Climate Economist at the World Bank, stressed the need for coordinated regional action to build high-skill, climate-resilient jobs.

    “Aligning supply chains with regional strengths will reduce risks and ensure shared prosperity. Early investment in renewables and innovation is essential to secure green jobs,” Espagne added.

    Also speaking, Ms Olapeju Ibekwe, CEO of Sterling One Foundation, emphasised that public-private partnerships are key to attracting green investments and fostering inclusive development.

    “Women must be fully included in the green transition not just as beneficiaries, but as leaders in decision-making and innovation,” she said.

    Panelists also raised concern about projected economic losses, with a one per cent rise in temperature potentially cutting Africa’s GDP by 2.2 per cent by 2030, particularly impacting West Africa.

    They warned that without targeted policies, the shift away from fossil fuels could worsen inequality, especially in West and Central Africa.

    The experts estimated that the carbon market alone could create up to 400 million jobs by 2050, in addition to those in renewable energy and sustainable agriculture.

    The session concluded with calls to scale up reskilling programmes for youth and informal workers, strengthen social protection, and unlock innovative financing to accelerate Africa’s green transition.

  • FAAC shares N903.480bn September revenue to FG, States, LGs

    FAAC shares N903.480bn September revenue to FG, States, LGs

    The Federation Account Allocation Committee (FAAC) has shared a total of N903.480 billion September 2023 Federation Account Revenue to the Federal Government, states and Local Government Councils (LGCs).

    This is contained in a communique issued by the FAAC at the end of its October meeting held in Abuja on Tuesday.

    The communique indicated that the N903.480 billion total distributable revenue comprised distributable statutory revenue of N423.012 billion, Value Added Tax (VAT) revenue of N282.666 billion, Electronic Money Transfer Levy (EMTL) revenue of N10.989 billion and Exchange Difference revenue of N 186.813 billion.

    It stated that a total revenue of N1594.763 billion was available in the month of September 2023.

    “Total deductions for cost of collection was N54.426 billion, total transfers and refunds was N347.857 billion and savings was N289.000 billion,” the committee stated.

    It said that gross statutory revenue of N1014.953 billion was received for September, which was higher than the N891.934 billion received in August by N123.019 billion.

    It added that the gross revenue available from VAT was N303.550 billion, which was lower than the N345.727 billion available in August by N42.177 billion.

    “From the N903.480 billion total distributable revenue, the Federal Government received a total of N320.543 billion, the state governments received N287.071 billion and the LGCs received N210.900 billion.

    “A total sum of N84.966 billion (13 per cent of mineral revenue) was shared to the relevant states as derivation revenue.

    “From the N423.012 billion distributable statutory revenue, the Federal Government received N190.849 billion, the state governments N96.801 billion and LGCs received N74.629 billion.

    “The sum of N60.733 billion (13 per cent of mineral revenue) was shared to the relevant states as derivation revenue,’” it said.

    It said that the Federal Government received N42.400 billion, the state governments received N141.333 billion and the LGCs received N98.933 billion from the N282.666 billion VAT revenue.

    The communique further said that N10.989 billion EMTL was shared as follows:

    The Federal Government received N1.648 billion, the state governments received N5.495 billion and the Local Government Councils received N3.846 billion.

    “The Federal Government received N85.647 billion from the N186.813 billion Exchange Difference revenue, the state governments received N43.442 billion, and the LGCs received N33.491 billion.

    “The sum of N24.233 billion (13 per cent of mineral revenue) went to the relevant states as derivation revenue. The balance in the Excess Crude Account (ECA) was 473,754.57 dollars,” it said.

    In September, Petroleum Profit Tax (PPT) and Oil and Gas Royalties increased considerably while VAT, Import and Excise Duties, EMTL, Companies Income Tax (CIT) and CET Levies recorded significant decreases.

  • FAAC: How FG, States, LGCs shared N966bn for July

    FAAC: How FG, States, LGCs shared N966bn for July

    The Federation Account Allocation Committee (FAAC), has shared N966.110 billion revenue to the Federal Government, States and Local Government Councils (LGCs) for July.

    This is contained in a communiqué issued at the end of FAAC meeting for August, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.

    According to the communique, the N966.110 billion total distributable revenue comprised distributable statutory revenue of N397.419 billion, distributable Value Added Tax (VAT) revenue of N271.947 billion, and Electronic Money Transfer Levy (EMTL) revenue of N12.840 billion.

    It also comprised Exchange Difference revenue of N283.904 billion.

    “In July, the total deductions for cost of collection was N62.419 billion, and total deductions for savings, transfers, refunds and tax credit cancellation was N717.962 billion.

    “The balance in the Excess Crude Account (ECA) was 473,754.57 dollars”.

    According to the communiqué, from the total distributable revenue of N966.110 billion; the Federal Government received N374.485 billion, state governments received N310.670 billion and the LGCs received N229.409 billion.

    It said that N51.545 billion was shared as 13 per cent derivation revenue to oil derivation states.

    “Gross statutory revenue of N1150.424 billion was received for the month of July.

    “This was lower than the sum of N1152.921 billion received in the month of June by N2.497 billion.

    “From the N397.419 billion distributable statutory revenue, the Federal Government received N190.489 billion, the State governments received N96.619 billion and the LGCs received N74.489 billion.

    “The sum of N35.822 billion was shared to the relevant States as 13 per cent derivation revenue,” it said.

    It said that the gross revenue available from VAT was N298.789 billion.

    “This was higher than the N293.411 billion available in the month of June 2023 by N5.378 billion.

    “The Federal Government received N40.792 billion, the State Governments N135.974 billion and the LGCs received N95.181 billion from the N271.947 billion distributable VAT revenue.

    “The N12.840 billion EMTL was shared as follows:

    “The Federal Government received N1.926 billion, the State Governments received N6.420 billion and the Local Government Councils received N4.494 billion.

    “From the N283.904 billion Exchange Difference revenue, the Federal Government received N141.278 billion, the State governments received N71.658 billion, the LGCs received N55.245 billion.

    “The sum of N15.723 billion was shared to the relevant states as 13 per cent mineral revenue,” the communique said.

    According to the communiqué, import and Excise Duties and EMTL increased considerably in July, while VAT increased marginally.

    “Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas royalties recorded significant decreases,” it said.

  • How FG, States, LGs shared N786.161 billion revenue for May

    How FG, States, LGs shared N786.161 billion revenue for May

    The Federation Account Allocation Committee (FAAC) has shared a total sum of N786.161 billion May 2023 Federation Account Revenue to the Federal Government, States and Local Government Councils.

    This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for June 2023; chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.

    The N786.161 billion total distributable revenue comprised distributable statutory revenue of N519.545 billion, distributable Value Added Tax (VAT) revenue of N251.607 billion, Electronic Money Transfer Levy (EMTL) of N14.370 billion, and Exchange Difference revenue of N0.639 billion.

    In May 2023, the total deductions for cost of collection was N38.238 billion and total deductions for transfers and refunds was N163.193 billion.

    The balance in the Excess Crude Account (ECA) was $473,754.57

    The communiqué stated that from the total distributable revenue of N786.161 billion; the Federal Government received N301.889 billion, the State Governments received N265.875 billion and the Local Government Councils received N195.541 billion. A total sum of N22.855 billion was shared to the relevant States as 13% derivation revenue.

    Gross statutory revenue of N701.787 billion was received for the month of May 2023. This was higher than the sum of N497.463 billion received in the previous month by N204.324 billion.

    From the N519.545 billion distributable statutory revenue, the Federal Government received N261.686 billion, the State Governments received N132.731 billion and the Local Government Councils received N102.330 billion. The sum of N22.798 billion was shared to the relevant States as 13% derivation revenue.

    For the month of May 2023, the gross revenue available from the Value Added Tax (VAT) was N270.197 billion. This was higher than the N217.743 billion available in the month of April 2023 by N52.454 billion.

    The Federal Government received N37.741 billion, the State Governments received N125.804 billion and the Local Government Councils received N88.062 billion from the N251.607 billion distributable Value Added Tax (VAT) revenue.

    The N14.370 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N2.155 billion, the State Governments received N7.185 billion and the Local Government Councils received N5.030 billion.

    From the N0.639 billion Exchange Difference revenue, the Federal Government received N0.307 billion, the State Governments received N0.156 billion, the Local Government Councils received N0.119 billion and the sum of N0.057 billion was shared to the relevant States as 13 percent mineral revenue.

    According to the communiqué, in the month of May 2023, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT), Import and Excise Duties increased significantly, while Electronic Money Transfer Levy (EMTL) decreased marginally.

  • FG, States, LGCs share N954.085 billion in July

    FG, States, LGCs share N954.085 billion in July

    The Federation Account Allocation Committee (FAAC), has shared N954.085 billion to the three tiers of government, as federation allocation for July.

    This is according to a statement signed by Mr Phil Abiamuwe-Mowete, the Director (Information/Press) on Wednesday in Abuja.

    From the amount, the Federal Government received N406.610 billion, the states received N281.342 billion, the Local Government Councils got N210.617 billion.

    This was inclusive of Gross Statutory Revenue and Value Added Tax (VAT),

    It said that the oil producing states received N55.515 billion as derivation (13 per cent of Mineral Revenue).

    The statement indicated that the Gross Revenue available from the VAT for July was N177.167 billion which was a decrease distributed in the preceding month.

    “The distribution is as follows; Federal Government got N26.575 billion, the States received N88.584 billion, Local Government Councils got N62.008 billion.

    “Accordingly,  the Gross Statutory Revenue of N776.918 billion distributed was higher than the sum received in the previous month.

    “From which the Federal Government was allocated the sum of N380.035 billion, States got N192.759 billion, LGCs got N148.609 billion, and Oil Derivation (13 per cent  Mineral Revenue) got N55.515 billion.”

    The statement also said that Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), Excise Duties and Oil and Gas Royalties recorded significant increases.

    According to the statement, Import Duty and VAT, however, decreased considerably.

    It said that total revenue distributable for the current month of July was drawn from Statutory Revenue of N776.918 billion.

    The VAT was also N177.167 billion bringing the total distributable amount for the month to N954.085 billion.

    However, the balance in the Excess Crude Account (ECA), as at Aug. 24 stands at 470,599.54 million dollars.

  • Why we’ve not had accrual to ECA in 4 years – Finance Minister

    Why we’ve not had accrual to ECA in 4 years – Finance Minister

    The Minister of Finance, Dr Zainab Ahmed has said in the past four years, because of volatility in the course oil market, Nigeria has not had accrual to the excess crude account (ECA).

    TheNewsGuru.com (TNG) reports Ahmed made this known when she addressed State House correspondents on the outcome of the Federal Executive Council (FEC) meeting which was presided over by President Muhammadu Buhari on Wednesday in Abuja.

    The Ministry of Finance, Budget and National Planning had presented the draft copies of the Medium Term Expenditure Framework 2023-2025 to the Council for onward transmission to the National Assembly (NASS) for approval.

    According to the Finance Minister, the draft document is for 2023-2025, with an assumption for crude oil price of $70 per barrel for 2023, $66 for 2024 and $62 for 2025, with an estimated production rate of 1.69 million barrels per day for 2023 and 1.813 million barrels per day for 2024 and 2025.

    “The assumptions that we made for the next medium term framework from 2023 to 2025 is that crude oil price will be at $70 per barrel for 2023, $66 per barrel for 2024 and $62 per barrel for 2025.

    “Crude oil production is projected to be 1.69million bpd for 2023 and 1.813million bpd for both 2024 as well as 2025.

    “We have also projected on the nominal GDP, that the size of Nigeria economy will rise up to N225.5 trillion with 95 per cent of this contribution by the non-oil sector while the oil sector will contribute only five per cent.

    “And some steady increase from 2024 to reach up to N280.7 trillion in 2025. This means that Nigeria continues to retain its position as the largest economy in Africa.”

    Ahmed also said the 2022 budget till April, performed very well with a steady growth in the economy for five consecutive quarters.

    She said the ministry got inputs from the Federal Executive Council and would make the necessary adjustments, for onward presentation to the National Assembly.

    “On the issue of the excess crude account, in the past four years, because of volatility in the course oil market, we have not had accrual to the excess crude account.

    “So, what we have had has been gradually used up for different purposes and it is always used in consultation with the National Economic Council – that is the Governors because this is a Federation Account.

    “The last approval that was given by the council was the withdrawal of $1billion to enhance security.

    “We have been utilising that and the last trench of that has been finally released because deployment to security agencies are based on the contracts that are executed and it’s been used strictly for that security purpose.

    “So, the utilisation of the account is with the full knowledge of the governors,” she said.

    Also addressing the correspondents on the outcome of the meeting, the Minister of Aviation, Sen. Hadi Sirika, said the Council approved N707. 9 million for the procurement of investigation tools for the Accident Investigation Bureau of the Nigerian Aviation Sector.

    According to him, the tool, when procured, will aid investigation, whenever an aircraft is involved in an accident in any part of the country.

    “The memo was for the deployment of an investigation tool by the Accident Investigation Bureau (AIB). That tool permits the AIB to be able to record going-on in flights; God forbid, should there be a need to investigate an accident, or a serious incident and the tool will help them to do so.

    “That procurement is in the sum of N707, 962, 854. 83, an equivalent of 1, 506, 285.70 Euros, inclusive of 7.5 per cent Value Added Tax at the Central Bank’s exchange rate of N470 to a Euro, with a delivery period of 11 months,” he stated.

    Sirika also announced that the council approved the leasing of three aircraft by the country’s national carrier, called ‘Nigeria Air’ to enable it to commence operations on a date to be announced soon by government.

    “We have said in our outline business case, which was earlier approved, that we are starting with three aircraft for the first instance and then we progress.

    “We will have a mixture of Airbus and Boeings because every airline that will grow big uses the two. We will start with domestic flights and then we grow to become international and then we move to become regional and intercontinental.

    “There are challenges currently in our aviation industry but it is a global phenomenon and it will not last forever because aviation is a very resilient sector. Certainly we will overcome these problems,” he added.

  • Fresh plans to withdraw money from ECA will be contested – Gov Wike

    Fresh plans to withdraw money from ECA will be contested – Gov Wike

    Governor of Rivers State, Nyesom Ezenwo Wike says Nigeria Governors Forum endorsement of fresh withdrawal of funds by the Federal Government from the Excess Crude Account will be contested.

    The governor wondered what happened to the $1 billion withdrawn from the Excess Crude Account in 2017 on the stance that it will be used to fund the fight against Boko Haram insurgents in the North-East.

    Governor Wike stated this when he played host to the Emir of Kano, Alhaji Aminu Ado Bayero, who was on courtesy visit to him at Government House, Port Harcourt on Friday.

    The Rivers State Governor said he will not support the plan for a fresh withdrawal except Rivers State is given its 13 percent share from the account.

    “Yesterday, I was told that the governors agreed that they will take money from Excess Crude to support military. What of the one they took before, the $1billion that they gave to the military?

    “Now again! This one, I’ll tell my Attorney General; you will have to prepare, we will go to court. I will not support that one except they’ll give us our 13 percent first from that Excess Crude Account.”

    Governor Wike told the Emir of Kano how his late father and other leaders in their time worked so hard in promoting love, peace and national unity among Nigerians.

    He expressed the regret that current political and religious leaders are not building on those successes.

    He said they are rather reducing every relationship, appointment, policy and programme of government to political and religious considerations.

    Governor Wike insisted that Nigeria belong to everybody and no one section can assert itself over other. He said that is why he had provided conducive environment to all ethnic groups in Rivers State to coexist.

    “It is important that where we are now, everybody, particularly traditional rulers, should know that they have major role to play in ensuring that peace reigns in this country.

    “This is the first time in Nigeria when we have so much ethnic divide, so much religious divide. It has never happened like this before. After the civil war, people had seen Nigeria as one country. We have seen ourselves as the same people but what we are facing today is a different thing.

    “We are not even talking about the issue of insecurity, but the issue of ethnicity, and religion which have taken centre stage in our life which is not supposed to be.”

    The governor accused heads of security agencies, particularly the Inspection General of Police of politicising security by posting Commissioners of Police to the State on the order a politician in the ruling party.

    The Emir of Kano,Alhaji Aminu Ado Bayero said his visit to Rivers State , the heart of the Niger Delta, is part of his fraternal tour to national leaders and traditional institution across the country.

    The Emir urged Governor Wike and other regional leaders to continue to ensure that the region remains a welcoming environment for all Nigerians to thrive.

    He said Kano and Rivers States, face similar challenges and political leaders are encouraged to make the current challenges a bit more bearable for the common man.

    “We have therefore made it a point every time we meet with traditional or political leaders across the country to ask them to do all within their powers to make the challenges of today’s life a bit more bearable for the common man.”

    He commended the governor for the giant strides recorded in all spheres of governance and urged other leaders to emulate him.

    The Emir expressed his appreciation to Governor Wike for the protective and fatherly role he has continued to play in this turbulent times of the country’s history.

    “Your career path has granted you a broad national perspective and network that must be used to further knit fabric of national development into a modern state for the generations to come.”

  • Nigeria petroleum industry in dire need of strategic reforms, says policy expert

    Nigeria petroleum industry in dire need of strategic reforms, says policy expert

    The Program Coordinator of the Nigeria Natural Resource Charter, Tengi George-Ikoli has said the nation’s petroleum industry is in dire need of strategic reforms.

    TheNewsGuru.com (TNG) reports the NNRC Program Coordinator stated this on Saturday during a media conference hosted on Instagram Live by Dayo Ibitoye, a public policy expert.

    During the conference that was tagged, ‘Strategy for Reforming Nigeria’s Oil and Gas Sector,’ George-Ikoli stressed the need to optimise the oil and gas resources of the nation while they are still valuable.

    The NNRC Program Coordinator also stressed the need for Nigeria to have its energy supply sorted out in-country while harping on the need to revive the countries’ refineries.

    “Other countries now recognise that you have to have your energy supply sorted out in-country. If you don’t do that, you have a COVID-19 period happen, and then you are clamouring for other options.

    “This is why refining conversation for Nigeria becomes so important. Because, if you are to have your oil in-country, you are able to refine it in-country, you are able to take care of your domestic needs, then you are not able to have these issues,” she stated.

    She further stated that there was a dire need to change certain laws in order to make the oil and gas industry more competitive for oil companies to invest.

    “While we want to make money from the industry, we have to be competitive. When the focus is solely on maximising profit, oil companies will move to other countries with favourable terms.

    “In the last five years, you have other countries, like Ghana, Tanzania, changing their laws making the industry more competitive for oil companies to invest there. Ghana became a hot spot when they found oil.

    “It is very important we have the most comparative terms. We need to put ourselves in a position to attract revenue to grow our gas sector. These are some of the things to put in place, in addition to balancing the need to make money and satisfy investors.

    “The hope and the anticipation is that these would be addressed when we have the fiscal component of the petroleum industry bill (PIB) come into play,” George-Ikoli said.

    Furthermore, the NNRC Program Coordinator stated that Nigeria needs to improve on savings culture, stressing that at the moment, the savings culture of the nation is too poor.

    “We can’t save, but we withdraw way more than we save. That is the problem. We save more into the Excess Crude Account (ECA) because the ECA can easily be taken out from.

    “We should save our funds in the Sovereign Wealth Fund (SWF), for instance, and maybe, jettison the ECA, and ensure that we are able to save better.

    “The Coronavirus disease (COVID-19) has amplified what is happening right now, but it’s not an isolated case, but to be fair, oil and gas are technical, it will happen again. So, we need to improve our savings culture,” George-Ikoli averred.

  • COVID-19 lockdown: Africa loss $65.7b in one month – ECA

    COVID-19 lockdown: Africa loss $65.7b in one month – ECA

    A month of lockdown across Africa cost the continent about 2.5 percent of its annual GDP, equivalent to about 65.7 billion U.S. dollars per month, a newly published United Nations Economic Commission for Africa (ECA) report revealed on Sunday.

    The newly published report entitled “COVID-19: Lockdown Exit Strategies for Africa,” proposes African nations various COVID-19 exit strategies following the imposition of lockdowns that helped curtail the virus.

    At least 42 African countries applied partial or full lockdowns in their quest to curtail the pandemic.

    But it has had devastating economic consequences.

    The UNECA also estimated that the COVID-19 lockdown has wider external impact on Africa in terms of lower commodity prices and investment flows.

    “With the lockdowns came serious challenges for Africa’s economies, including a drop in demand for products and services; lack of operational cash flow; reduction of opportunities to meet new customers; businesses were closed; issues with changing business strategies and offering alternative products and services; a decline in worker production and productivity from working at home; logistics and shipping of products; and difficulties in obtaining supplies of raw materials essential for production,” the report read.

    The report, among other things, proposed seven exit strategies that provide sustainable, albeit reduced, economic activity.

    The strategies include improving testing, lockdown until preventive or curative medicines are developed, contact tracing and mass testing, immunity permits, gradual segmented reopening, adaptive triggering, as well as mitigation.

    Gradual segmented reopening may be needed in countries where containment has failed with further measures to suppress the spread of the disease being required where the virus is still spreading, the report indicated.

    “The spread of the virus is still accelerating in many African countries on average at 30 percent every week,” the report advised.

    According to the report, active learning and data collection can help policymakers ascertain risks across the breadth of policy unknowns as they consider recommendations to ease lockdowns and move towards a “new normal.”

    It further urged African nations to learn from the experiences of other regions and their experiments in reopening; and to use the “extra time” afforded by the lockdowns to rapidly put in place testing, treatment systems, preventive measures, and carefully design lockdown exit strategies in collaboration with communities and vulnerable groups.

    The ECA argued that one of the most sensitive issues facing policymakers is the impact of COVID-19 lockdowns on food security.

    On Sunday, the Africa Center for Disease Control and Prevention (Africa CDC) said that the number of confirmed COVID-19 cases across the African continent surpassed 61,165.

    The death toll from the COVID-19 pandemic reached 2,239.