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.
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”.