We didn’t suspend tomato production over Forex – Dangote – NAN

The Managing Director of Dangote Tomato Processing Factory, Kadawa, Kano State, Alhaji Abdulkarim Kaita, says the company is relying on local fresh tomatoes as raw materials for its operations.

Kaita, in a statement in Kano on Friday, said the factory did not require any foreign exchange to import its raw materials.

He urged members of the public to disregard the story in a national newspaper that the factory was shut due to lack of foreign exchange.

The managing director said that the factory had completed the necessary arrangements to resume production in the first week of February when the fresh tomato season would start.

He explained that the company stopped production about nine months ago due to lack of enough raw materials, following the outbreak of a pest which ravaged tomato farms in five states including Kano.

“The company had to suspend production in March 2016, when most of the tomato farms in about five states were affected by a pest which destroyed all tomato species,” he said.

He countered a report on its purported closure over lack of foreign exchange to continue operations at the factory.

“Our attention has been drawn to a publication that the Dangote Tomato Factory has been closed down due to lack of foreign exchange.

“We wish to categorically refute this story that does not emanate from our company,” Kaita said.

The Federal Ministry of Agriculture puts an annual current demand for tomato puree at 900,000 tonnes.

When the Dangote factory was opened, it was expected to provide 430,000 tonnes of paste that was used widely in Nigerian dishes from jollof rice to fiery soups.

Nigeria is such a huge market for tomato paste that we will find quite challenging to satisfy,” the factory’s general manager, Abdulkarim Kaita, had earlier said.

Nigeria’s distributable revenue rose by 3.4 percent in December – Reuters

dollar to naira

ABUJA Jan 20 (Reuters) – Nigeria’s distributable revenues to the government rose in December by 3.4 percent to 400 billion naira ($1.31 billion) as the country collected more royalties from oil, the minister of finance said in a statement on Friday.

“Collection from royalties increased significantly,” Minister of Finance Kemi Adeosun said in the statement.

Average oil prices rose from $47.08 to $47.30 per barrel during December, but that was offset as total crude export volume dropped 1.39 million barrels, causing export sales to fall $65.4 million, she said.

Nigeria, which has Africa’s biggest economy, is an OPEC member that relies on crude oil sales for two-thirds of government revenue. As a result, it has been hit hard by the fall in global crude prices since mid-2014.

Militants have carried out attacks on oil and gas facilities in the southern Niger Delta energy hub for a year, cutting oil production – which stood at 2.1 million barrels per day at the start of 2016 – by more than a third earlier this year.

The frequency of attacks has slowed in recent months amid talks between the government and Delta community leaders to address the grievances of militants who want the oil hub to receive a greater share of the country’s energy wealth.

Repairs on damaged facilities are underway, while force majeure remains in place at Forcados, Qua Iboe and Brass oil terminals.

“Federation revenue was negatively affected by several shut-ins and shut-downs of pipelines for repairs and maintenance due to leakage and sabotage,” said Adeosun in Friday’s statement.

The total revenue distributable – including 79.273 billion naira of value-added tax – is 400 billion naira, she said. ($1 = 304.4800 naira) (Reporting by Camillus Eboh; Writing by Paul Carsten; Editing by Catherine Evans)

 

Adeosun: FG, states N13.1b richer in December – NAN

By Racheal Ishaya/Abuja

The Minister of Finance, Mrs Kemi Adeosun said the Federation Account Allocation Committee (FAAC)  shared N400 billion which is N13.1 billion more than what the three tiers of government shared as revenue in December.

She said the N400 billion was distributed under four distributable sub-heads.

They are statutory allocation where the sum of N224.88 billion was allocated; Value Added Tax N79.27 billion, exchange gain N52.84 billion and excess Petroleum Profit Tax N42.99 billion.

From the statutory allocations, the minister said after deducting cost of collections to the revenue generating agencies, the Federal Government got N105.76 billion, states N53.64 billion and local government councils N41.35 billion.

In addition, she said the sum of N15.5 billion was given to the oil producing states based on the 13 per cent derivation principle.

For VAT allocation, Adeosun said the Federal Government received N11.4 billion, states N38 billion while Local Government Councils got N26.63 billion.

Adeosun said that the Federation generated N145.6 billion as Mineral Revenue and N103.1 billion as non-Mineral revenue.

The minister said the excess crude account now has a balance of $2.45 billion.

Adeosun said that the Force Majeure at Forcados, Qua Iboe and Brass terminals was still impacting negatively on revenue generation.

For instance, she said there was revenue decline of 65.4 million dollars in oil export sales due to a drop in production volume of 1.39 million barrels.

Also, the Chairman, Forum of Finance Commissioners in Nigeria, Mr Mahmoud Yunusa, said that states were determined to keep improving their internally generated revenue.

“Low federation revenue has become a blessing in disguise to us. Initially almost all the states relied heavily on FAAC.

“But now, because the money is no longer there, it has forced us to look inwards at the opportunities and potentials in our respective states and begin to explore them.

“We had to look at cutting cost in running governance and blocking all revenue leakages’’,. he said.

Yunusa said that most of the states have been able to improve their IGR through improved tax collection method and increased tax base.