Edun Calls for Discipline in Money Supply as FG, States, LGs Share N966.11bn in July

•NECA tasks new ministers on need to change Nigeria’s economic narrative

•Advises Edun to deepen support for naira, stabilise the FX market

Ndubuisi Francis in Abuja and Dike Onwuamaeze in Lagos

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday called for discipline in money supply to control inflation, as the Federation Account Allocation Committee (FAAC) shared a total sum of N 966.110 billion to the federal, state and local government councils for the month of July.

This was just as the Nigeria Employers’ Consultative Association (NECA) has enjoined the new ministers, including Edun, “to ensure focused and urgent action to change the economic narratives of the country.”

Edun, who gave the admonition for discipline in money supply to control inflation in Abuja, while presiding over the monthly FAAC meeting, explained the need for government to mobilise resources to deliver on its mandate to boost employment and reduce poverty.

He advised that there should be discipline in money supply to control inflation in the nation’s economy.

Different statements issued from the Ministry of Finance and the Office of the Accountant General of the Federation disclosed that FAAC shared a total sum of N 966.110 billion Federation Account Revenue among the federal, state and local governments for the month of July.

This signified a N59.056 billion increase over the N907.054 billion distributed in the preceding month of June.

Quoting a communiqué issued at the end of the FAAC meeting in Abuja, which was presided over by Edun, the Director (Press and Public Relations), Mr. Stephen Kilebi, disclosed that the N966.110 billion shared was from a total gross revenue of N1, 746.491 trillion.

The statement added that from the total distributable revenue of N966.110 billion, inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the federal government received N374.485 billion, states received N310.670 billion while the local government councils got N229.409 billion.

A total sum of N51.545 billion was shared to the relevant states as 13 per cent derivation revenue.

 Gross revenue available from VAT for the month of July was N298.789 billion, indicating a N5.378 billion increase over the N293.411billion distributed in the preceding month of June.

Gross statutory revenue of N1150.424 billion was received for the month of July 2023.

This indicates a decrease of N2.497 billion over the sum of N1152.921 billion received in the month of June.

From the N397.419 billion distributable statutory revenue, the federal government received N190.489 billion, states received N96.619 billion while the local government councils received N74.489 billion.

The sum of N35.822 billion was shared to the relevant States as 13 per cent derivation revenue. 

For the month of July, the gross revenue available from the Value Added Tax (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, state governments got N135.974 billion and the local governments received N95.181 billion from the N271.947 billion distributable Value Added Tax (VAT) revenue.

The N12.840 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the federal government received N1.926 billion; states, N6.420 billion and the local government, 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 Local Government Councils received N55.245 billion and the sum of N15.723 billion was shared to the relevant States as 13 per cent mineral revenue.

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

The balance in the Excess Crude Account (ECA) as at August 22, 2023 stood at $473,754.57.

NECA Tasks New Ministers on Urgent Need to Change Nigeria’s Economic Narrative

NECA has enjoined the new ministers “to ensure focused and urgent action to change the economic narratives of the country.”

The NECA also commended Tinubu for swearing-in of the new ministers, adding that, “we believe that with the inauguration, definitive steps will be taken to step-up Governance at the different levels.”

It also specifically tasked Edun; Minister of Industry, Trade and Investment, Ms. Doris Anite, and the Minister of Labour and Employment, to deepen the ongoing reforms in the fiscal and monetary space, finalise the reviewed labour laws for onward passage as executive bills to the National Assembly and work in close collaboration with the organised business community in the country.

Speaking in Lagos yesterday, the Director-General of NECA, Mr. Adewale-Smatt Oyerinde, averred that the, “organised businesses expect the new minister of Finance and Coordinating Minister of the Economy to deepen the ongoing reforms in the fiscal and monetary space, while not losing sight of the need to create a hospitable environment for local and foreign investors.

“The urgent need to continue to deepen support for the Naira and stabilise the FOREX market cannot be over-emphasised.”

Oyerinde particularly noted that the new minister of Labour and Employment was coming at a time when much has to be done.

According to him, “there is the need to urgently finalise the reviewed labour laws for onward passage as executive bills to the National Assembly,” adding that there is also “need for reform of the industrial relations system, deepening of social dialogue, strengthening institutions of labour administration and deepening engagement with social partners and urgent focus on job creation.”

He emphasised that it is important to note that the, “success of the new minister of Labour and Employment will largely depend on how he manages the complexities of the relationships between social partners.”

Speaking further, the director general of NECA urged the, “minister for Industry, Trade and Investment and indeed, other ministers to work in close collaboration with organised Businesses to drive the economy back on the track of growth and consistent development.”

He stated that organised businesses have not had it so challenging in view of the recent removal of the fuel subsidy and subsequent reforms.

“It will be expedient for the government to expedite action on the palliatives and support for organised businesses. The trend in the exodus of some businesses and closures of many others has worsened the unemployment situation in the country. This should not be treated lightly in order to avoid more damaging consequences,” he concluded.