BC FINANCE
Saved by @Alex1Powell

Why are states in Nigeria not paid their share of the oil and gas earnings in the currency it was earned in, i.e., the United States Dollars (USD)?

 Crude oil in Nigeria is owned by the Federation — the Federal, State, & Local Govt. Shared as follows: 13% is deducted & paid to the oil and gas producing States; next, the Federal Government (FGN) gets 52.68%; the States get 26.72%, & the Local Governments get 20.60%.
When Nigerian crude oil is sold, the proceeds are in USD and get paid to the NNPC/CBN/JPMorgan Account in the US. The Oil taxes, e.g., Petroleum Profit taxes, are also in USD and are collected by the Federal Inland Revenue Service and paid to the Central Bank of Nigeria (CBN
The same thing applies to the royalty bonus collected by the Department of Petroleum Resources (DPR) and paid to the CBN. The CBN then converts the USD sales proceeds to Naira.
The CBN and Ministry of Finance then fund Federal agencies like NEMA and the Consolidated Revenue Fund in Naira, even the 13% derivation is paid in Naira. In other words, while the CBN retains the USD, the Federal, States, and LGAs get Naira
The CBN thus becomes the biggest player in the Foreign Exchange (Forex) markets, with Forex “earned” from the Federation. Why is this the case? Is it their money?
Why not simply give Abia State its share of oil sales earned in USD? Abia State could sell or save its USD in her State Sovereign Wealth Fund (amen). The state can decide to sell or save her Forex as she desires on the Interbank Foreign exchange market, or sell to the CBN
Why is the CBN deciding what exchange rate to use in remitting to states and LGAs their share of Forex earned from exports? Is Nigeria not a Federation?
Ultimately, the States, as part of the Federation, should get to choose what to do with their Forex earnings. If the CBN wants Forex, let it also bid for it from the States.
Nigeria is a Federation on paper, but a Unitary state in practice. The FGN may receive 56% of the share of fiscal revenues, but it collects above 95% of the major fiscal taxes on behalf of the States, including the VAT, and then redistributes.
States as mere appendages of the FGN, running back and forth for bailouts, unable to build railroads to export, unable to build power plants and sell power, unable to mine solid minerals in their states, or even issue company business licenses without the consent of the FGN.
Nigeria has no business with 35 states and FCT if those states become mere spenders of FAAC allocations, unable to generate their own wealth.
Perhaps the States should consider holding a nonpolitical summit and confronting the Federal Government, as well as passing a constitutional amendment to force fiscal devolution of powers.
There are gold and iron ore sprinkled across Nigeria, yet states cannot touch them. Why? Well, the reason is that those are Federal property. Yes seriously
If states owned those assets, it would be reasonable to assume they would protect them, but gold mining goes on illegally across the nation because the FGN owns the assets on the land but the states own the land without the assets—a mismatch of revenues and responsibilities.
All states, except just a few, cannot meet their obligations from Internally Generated Revenues (IGR). These include States governed by the APC, and PDP political parties.
The states should be allowed devolved power; for instance, allow states to own mineral deposits on their land, thus retaining income of 65% via derivation on Company Income Tax and Mineral Tax generated. States must stop begging for bailouts.
A quick win will be to allow states to register companies via their State Corporate Affairs Commission. This will spur competition via efficiency where states compete to attract companies to list in their states and pay CIT in their State.
In summary, Nigeria needs a devolution of fiscal powers to empower the States fiscally, and then hold them accountable. As Nigeria seeks to diversify the FX earning sources of the Federation, it’s also important that the political economy is considered.

More from Finance

Saturnalia "Ultimate Survivor" Sundown
Saturnalia "Ultimate S...
@SaturnaliaSund1
Hello friends, I am back! I have been doing a ton of financial research and am very disturbed by what I have learned.

Please enjoy a long (irresponsibly LONG) story about central banking, manufactured crises, George Soros, and the Great Reset.


This thred will be much longer and more dry than my usual, pls bear with me. This one's legit important. The first portion will reference works by Dr. Richard Werner, and the latter George Soros.


Note my views are not indicative of those of people quoted. This post does not constitute investment counsel.

To understand current financial conditions you bare minimum have to go back to WWII. Bretton Woods has just been signed, establishing the IMF and World Bank, and the USD as standard for international settlement.


But we're not talking about US history (yet), we have to look at Japan. Unlike Germany, which had it's economy stripped down and sold off by the victorious Allies, Japan's system remained remarkably intact.
FINANCE
Goldstein
Goldstein
@MrGoldstein7
The old conservative versus liberal thing, or the left/right division has been completely obliterated, and sometimes directly reversed. Originally, those on the right were defenders of the status quo, which meant they were fine with the world being run by bankers and aristocrats.
FINANCE
Advertisement
Neil Thomas \u725b\u7287
Neil Thomas 牛犇...
@neilthomas123
THREAD: Who are the rising stars of Chinese elite politics in the central Party-State bureaucracy?

For @MacroPoloChina I analyzed last year's ministerial-level promotions to posts in Beijing

TLDR: Ties to Xi Jinping—or a Xi ally—are very helpful! (1/14)

https://t.co/kO2A0Efyq2


Seven politicians were promoted to ministerial-level positions in central Party agencies last year

All are likely to feature on the next Central Committee selected at the 2022 Party Congress

Some could make the CCP's elite 25-person Politburo (2/14)

https://t.co/kO2A0Efyq2


Likeliest for the Politburo is Meng Xiangfeng, new Executive Deputy Director of the CCP General Office

He would replace Xi ally Ding Xuexiang as CCP chief-of-staff if Ding is promoted further in 2022

Meng worked under Xi allies Cai Qi in Hangzhou and Chen Xi in Liaoning (3/14)


Less likely for the Politburo but still important is Jiang Jinquan, new Director of the CCP Policy Research Office

He replaces 5th-ranked leader Wang Huning who led the Party's brains trust for 18 years

Wang remains prominent and will be <68 in 2022, so he'll stay around (4/14)


Other notable central Party promotions include Li Shulei and Liang Yanshun, who both assisted Xi when he led the Central Party School from 2007-2012

Li is a political conservative who is said to be quite close with Xi, even drafting his 2014 speech on culture and art (5/14)
FINANCE
Varsity
Varsity
@ZerodhaVarsity
A 🧵on the basics of block and bulk deals.

Block and bulk deals are large purchases of stocks by investment banks, mutual funds, hedge funds, pension funds, FIIs, and promoters. Tracking block and bulk deals can help give you a sense of what these large players are thinking.

A single transaction where shares more than Rs 10 crores or the number of shares traded are more than 5 lakh is considered a block deal.

Block deals are carried out in separate trading windows. This trading window operates in two shifts of 15 minutes each:

Morning trading window from 8:45 AM to 9:00 AM.
Afternoon trading window from 2:05 PM to 2:20 PM

Block deals happen in different windows to reduce volatility and sudden price movements. Given that they are traded in a separate window, they do not show up on the volume charts.

Brokers facilitating the transaction are required to inform the exchange. You can track bulk and block deals on NSE & BSE:
https://t.co/pwTyzWTnUL

https://t.co/g9BbHiEag3
FINANCE , MARKETINFO , BLOCK DEALS
Bartek Kiepuszewski
Bartek Kiepuszewski
@bkiepuszewski
1/ If, after reading https://t.co/IzzATArtZl you are still confused how Alpha Homora and IronBank were hacked, here's how the hack was conceived

2/ Normally when you borrow funds from AH bank, your debtShare and totalDebt increases. Specifically if you want to borrow x tokens, your debt share will be calculated as:

share = x * totalShare / totalDebt

and it is added to totalShare

3/ All these numbers are very big integers (as token precisions are 18 digits) and the calculation is correct, but when totalShare = 1 (think 1 wei) and x < totalDebt, new debt share will be 0 (integer division)

4/ So if you manage to have AH bank with totalShare = 1, and some totalDebt you can repeatedly borrow less than the totalDebt (ideally totalDebt - 1) effectively doubling totalDebt in each iteration. You can do it as many times as you want, while totalShare will remain 1

5/ Eventually Iron Bank that supplies funds to AH will run out of funds, so when amounts get big enough (you are doubling each time), also make sure to replenish it with flash loan
FINANCE

You May Also Like

Shalini Singh Sengar
Shalini Singh Sengar
@Maverickmusafir
(An extract from Field Marshal Sam Manekshaw, Soldiering with Dignity)

The man eventually destined to be free India's first Field Marshal was born on 3rd April 1914 at Amritsar. How did a Parsi couple settle for the holy city of the Sikhs? I once asked him and was told that in+


1899, his father recently qualified as a doctor and just married, could make no professional headway in Bombay, and was advised to try his luck at Lahore in the Punjab. With his young wife, he set off by train for Lahore. The long dusty and hot journey took five days and by the+


end of it, his young wife, who had never left the comforts and civilization of Bombay, was in hysterics and cried to go back. Poor Dr Manekshaw did all he could to comfort her, but as the train steamed into Amritsar, with her first sight of the Sikhs the young bride screamed her+

lungs out and refused to go any further. So they left the train at Amritsar, and there they stayed for forty-five years.

The Manekshaws had six children, four boys and two girls, and Sam was the fifth child. Sam had his schooling at Nainital's Sherwood College.+

After completing his schooling, he should have gone to England to pursue higher studies; this was the promise made to him by his father but, fortunately for the Indian Army, Dr Manekshaw felt that this particular son was far too young to be on his own in a foreign country, even+
HISTORY
Learning @ Prakash
Learning @ Prakash
@Prakashplutus
My simple Approach towards Breakout trading :

1. Scan stocks on the basis of FTDB Scanner.

2. Buy stocks with EMA-9> EMA-21> EMA-63 > EMA 200 & Volume 200% up

3. maximum SL of 1.25X ( ATR )

4. I do breakout trading only in Nifty -500 stocks

#StockMarket
#trading
#Nifty
SCREENERS
Advertisement
ArmaniTalks \U0001f399\U0001f525
ArmaniTalks 🎙🔥...
@ArmaniTalks
Make them irrelevant > Hold a grudge

Holding a grudge is the easy thing to do.

But holding a grudge is not the right thing to do.

A grudge puts poison in your body & rewires your subconscious mind.

You consume the poison & destroy your reality while your attacker sleeps like a baby.
LIFE
Dani\xeblle Stotijn
Daniëlle Stotijn
@DDay35962863
NESARA / GESARA explained for all who are not aware.

"The End of Poverty, The End of Debt, The Beginning of a New Golden Age!"

No Poverty, No Hunger, No Debt, Only Global Prosperity and Peace for ALL

NESARA will merge with GESARA

N = National (US)
G = Global
CRYPTO
Ottoman History Podcast
Ottoman History Podcas...
@OttomanHistory
Here is a special thread introducing our series on “The Making of the Islamic World.” It offers 10 episodes about the transformation of Islamicate societies between the 7th and 17th centuries. You can find the series page here: https://t.co/7mL9eWmMmz


This is Chris Gratien posting. I created this series during Fall 2020 for my students as asynchronous material supported by readings and discussion. This is going to be a long thread, but it will be a great shortcut for those looking to make similar use of these materials.

There are two items worth pointing out: 1. This is an overview of the political, social, and cultural history of Islamicate societies. It does not deal with the origins of Islam or many theological questions. It does discuss Islam’s spread and the transformation of Islamic law.

2. This is the first part of a two-part sequence that takes the history of the Islamic world into the present. It emphasizes developments and themes that have particular relevance for later periods.

This is really a multivocal narrative of Islamic history. We feature over 20 scholars from almost as many institutions. Many of those who worked on it, myself included, study the early modern and modern era but have teaching obligations that take us further back in history.
RELIGION