N700 Billion Nigeria FAAC Allocation In August, Highest In 30 Months

As the federal government increased its spending in order to steer away the economy from recession, the Federation Account Allocation Committee (FAAC) is set to share N700 billion in the month of August, the highest shared in the last30 months,according to projections by analysts at Financial Derivatives Company (FDC) Limited.

Allocation began to show remarkable increase in July, when a total of N559 billion was shared, a surge of 83.2 per cent over the previous month. The increased spending also helped activate shipping activities during the month.

Disclosing this in Lagos, chief executive officer, FDC, Bismarck Rewane attributed the rise to partially improved tax collection and exchange rate gains.

Rewane said increased exchange rate gains reached highest level in 18 months.

FAAC allocation rose to N559.03 billion in July from N305.12 billion in June.

Based on increased spending, Rewane said there were more ships in Lagos. He said ships awaiting berth increased to 45 in July.

"Higher international trade activity, forex availability and settlement of backlogs were responsible,"he said.

he added that ships awaiting berth are expected to increase to 50, "boosted by budget implementation and flexible exchange rate".

Meanwhile, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside assured that Nigeria is safe for shipping and other commercial activities in the maritime sector.

According to reports by the Ship Owners Association of Nigeria (SOAN)'s news bulletin, the director general, who made this known recently noted that Nigeria is working with both local and international counter-piracy partners to eliminate criminality on its waterways.

He said,"We have a close working relationship with the United Nations Office on Drugs and Crimes (UNODC) in order to foster an integrated approach to dealing with the menace. 

We have also increased surveillance and have deployed world-class maritime domain awareness assets in conjunction with the Nigeria Navy and the Nigeria Ports Authority to monitor our maritime environment".

Peterside said that in addition, the country has deployed Maritime Patrol Aircraft (MPA) in collaboration with the Nigerian Air Force as well as other naval assets to patrol and monitor the country's waterways.

The DG observed that as a signatory to all IMO instruments and regulations relating to maritime security, Nigeria is committed to their compliance in order to eliminate piracy and criminality on the high seas.

He also said that Nigeria is mindful of the serious risk posed by piracy and maritime crimes to life, navigational safety and the environment saying this is why NIMASA is strengthening the Regional Rescue Coordination Centre located in the country as well as enhance information sharing activities.

allafrica.com