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Tag: TSA

  • TSA: Water Board moves to delist uncooperative banks

    The Federal Capital Territory (FCT) Water Board has warned that it would replace banks which still had challenges with aligning with the Treasury Single Account (TSA) for its revenue collection.

    Mr Udu Bello, Director of the board, made this known in an interview with the News Agency of Nigeria on Tuesday in Abuja.

    Bello said that some designated banks had been turning back customers due to challenges with the TSA.

    “There are some banks that have problems with aligning with the TSA and we have been holding meetings with the banks.

    “They are expected to sweep the remittances to the CBN everyday and it is no longer lucrative for them.

    “Moreso, when there is a penalty for banks who comply, so they have been turning back our customers.

    “We urge our customers to ignore banks like Bank UBA, Aso Savings, Mainstreet Bank and First Bank and pay their bills at Unity Bank, Zenith Bank, Fidelity Bank, Diamond Bank, GTB, FCMB,’’ he said.

    He advised residents to improve their cooperation with the board by always paying their bills or risk disconnection.

    “Some residents of high brow areas like Asokoro and Maitama are usually reluctant to pay their charges.

    “Some claim that they are using boreholes, whereas they are using our services.
    “Henceforth, we will remove our infrastructure from any location where residents claim to be using borehole,’’ he said.

     

  • TSA: No resolution yet as remittance firm proves its integrity

    TSA: No resolution yet as remittance firm proves its integrity

    The involvement of SystemSpecs in the implementation of the Treasury Single Account (TSA) has generated controversies. The suspension of the payment of commission based on the agreed percentage to the firm is portraying the Federal Government as a violator of contractual agreement. Assistant Editor NDUKA CHIEJINA writes on the issues surrounding Remita, the platform used by SystemSpecs and the views of protagonists about the transaction.

    It all started like a dream deal many business concerns would stake their life-savings to partake in. But, it has snowballed into a major issue, gradually becoming a scandal.

    On December 11, 2013, SystemSpecs and the Central Bank of Nigeria (CBN) sealed a deal to deploy Remita, a T24 banking application, to carry out payment instructions and oversee the collection of government revenue.

    Going by the contractual agreement signed in December 2013 by Eunice Ikekhuah and Aderemi Atanda on behalf of SystemSpecs and H.M Yusuf and R.A Olaniyan for the apex bank, it was agreed that apart from the collection of revenue, Remita would also be used for payment of salaries, taxes, pension, payroll processing and biometric verification, among other services.

    Remita was designed by SystemSpecs as a software to facilitate the payment of government revenue from financial institutions into a Treasury Single Account (TSA) domiciled in the CBN. It was not designed as a revenue-collection agent.

    Under the arrangement, all commercial banks and the more than 400 Micro Finance Banks (MFBs) are to be connected to the software with about 705 Ministries, Departments and Agencies (MDAs), using the software platform for revenue payment and collection.

    President Buhari had on August 9 ordered all MDAs to start paying into a TSA for all government revenues, incomes and other receipts.

    According to the directive, the measure was specifically designed to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.

    “Henceforth, all receipts due to the Federal Government or any of its agencies must be paid into TSA or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved”, a statement by Vice President Yemi Osinbajo’s Assistant on Media and Publicity, Mr. Laolu Akande, said.

    Speaking during his first media chat in Abuja yesterday, President Buhari said the introduction of the TSA and the restructuring of the national budget would go a long way in rescuing the economy.

    His words: “We have to reorganise the NNPC. We have to reorganise the NNPC. We have to introduce the TSA. There were 45 accounts in the NNPC alone. The Ministry of Defence had about 70 accounts. We have got about N1.5 trillion through the TSA.”

    However, when President Muhammadu Buhari mandated all MDAs to migrate to the TSA in September, there was an allegation that Systemspecs, and by extension, Remita, had in one fell swoop, pocketed N25 billion in a deal that lasted barely three months. In fact, it was alleged that the amount was made in one day. Those behind the allegation claimed that SystemSpecs was asked to refund only N8 billion and not the alleged N25 billion to the Federal Government account.

    The uproar that trailed the allegation led to the revelation that the TSA migration, which was initially designed to be in phases, but rushed by the new administration, had a one per cent commission component. The CBN, Deposit Money Banks (DMBs) and SystemSpecs were listed as beneficiaries of the one per cent commission.

    According to the agreement, “a tariff of one per cent of the funds collected shall be charged for the government revenue collections (shared as follows): (i) platform owner/SystemSpecs: 50 per cent; (ii) collecting agents/DMBs 40 per cent and (iii) introducer – CBN –  10 per cent.”

    At the height of the controversy, Messrs SystemSpecs made a clarification that what it actually proposed “at a seminar organised by the CBN and the Office of the Accountant General of the Federation (OAGF) between May 27 to 28, 2013, was a 1.5 per cent commission. It explained that commercial banks actually proposed five per cent.  A committee set up by the CBN and the OAGF proposed 2.5 per cent. The then Accountant-General of the Federation actually overruled all the suggested commission and reduced it to one per cent.”

    According to SystemSpecs, the OAGF invited it for a meeting after the kick-off of the TSA, following the announcement of a deadline by President Buhari. The meeting convened by the OAGF was to review the charges in line with the enlarged TSA scope.  On October 27, the CBN, through Mr. Dipo Fatokun, the director in charge of Banking & Payments System Department, directed it to refund all charges it collected from MDAs under the TSA regime.

    What began as an ordinary and genuine transaction between a respectable business entity and a government agency was fast becoming a scandal until the Senate initiated a probe into the deal.

    Despite establishing the existence of an agreement and that the commission being paid was a far-cry form the alleged N25 billion, the CBN and the OAGF have not agreed on the actual amount so far raked in from the forced TSA migration.

    The Senator representing Kogi West, Dino Melaye, had alleged sharp practices in the implementation of the TSA. In a motion he moved, Melaye claimed that Remita collected N25 billion as commssion. Urging investigation, Melaye had argued that the use of Remita was a violation of Section 162(1) of the Constitution, which stated that “the federation shall maintain a special account to be called the Federation Account, into which all revenues collected by the government of the federation, except the proceeds from the Personal Income Tax (PIT) of the personnel of the Armed Forces of the federation, the Nigeria Police Force, the ministry or department of government charged with foreign affairs and the residents of the FCT, Abuja.”

    The senator said that the CBN could only appoint a registered bank as an agent for the collection and disbursment of funds.

    He said that since Remita was not a bank, its appointment as a collection agent was in violation of the CBN Act and the Banks and Other Financial Institutions Act (BOFIA) 2007.

    Acting on Melaye’s motion, the Senate directed it Committee on Finance and Public Accounts to immediately commence an investigation into the use of Remita (which it erroneously described as an e-collection agent) for remitting government funds into the TSA, and its alleged collection of N25 billion commission being one per cent of the alleged N2.5 trillion it remitted into the TSA.

    Melaye had in another motion claimed that a newspaper allegedly blackmailed the upper legislative chamber for pointing out the alleged fraud in TSA.

    Reacting to the motion, Senate President Bukola Saraki said no intimidation will stop the National Assembly from investigating the alleged N25 billion TSA fraud.

    He said the Senate would not relent in carrying out its constitutional duties, including pointing out any action that would be detrimental to Nigerians.

    His words: “No amount of either blackmail or intimidation will stop us from doing the work we have to do. We have a responsibility here to ensure that there are no leakages in government funds and if there are, we will call the attention of the public and do whatever it takes to salvage the situation; it is our responsibility.

    “The fact about the TSA will come out and everybody will have opportunity before the committee to state the fact, the facts will speak for themselves.”

    At a public hearing organised by the Senate committee on Remita commission, CBN Governor Godwin Emefiele and AGF Ahmed Idris gave contradicting figures as what was collected from MDAs as at December 8. The CBN chief gave N2.038 trillion as what was raked in but Idris said it was N1.8 trillion.

    Emefiele explained that the one per cent commission was considered too high for Remita because of the volume of funds collected under TSA.

    The CBN governor cleared all the parties to the Remita scheme when he declared that remittances were free of abuse.

    Asked to name who authorised the payment of the one per cent service charge to Systemspecs/Remita, the CBN governor said he needed more time to cross-check, but he admitted that that there was an agreement between CBN and Remita.

    Emefiele, who said he was “told that the inter-departmental committee of the apex bank approved the payment”, said the Nigeria Inter-Banks Settlement System (NIBSS), owned by the CBN, was not quite ready to provide the services when Remita was appointed as an e- payment solution platform.

    The AGF told the committee that the TSA was meant to focus on government revenues and to ensure the consolidation of such revenues so that they can be viewed through a single window and also meant to block leakages.

    Idris, who partook in the coordination of the TSA migration, said that 47 MDAs had enrolled in the TSA scheme, adding that the fact that only 47 MDAs had been captured should not be interpreted that others do not want to enrol. According to him, the appointment of Remita was a stop-gap because the CBN lacked capacity to do the job as at the time Remita was franchised.

    Idris said series of meetings were on going before the matter came up in the Senate. On the charges paid to Remita, Idris said: “Whatever charges made by Remita, which is about N8 billion, we wish that the matter should be resolved. Now, Remita is operating without charge. The matter should be resolved. Remita cannot be operating without charge. Remita has provided services and it deserves to be paid.”

    Responding to the question on who monitors Remita on the collection of government revenue, Idris said: “The provision of gateway of collection of government funds is the responsibility of the CBN. If the CBN had provided that gateway, there would not be any need to appoint Remita.”

    System Specs Chief Executive Officer (CEO) John Obaro expressed displeasure at the changing of the rules in the middle of the game. He described as unethical the suspension of a contract without explanation.

    Obaro insisted that his company has a valid contract with the CBN, demanding that the agreement should be honoured. He said the use of a Remita software had increased transparency with the provision of an online real time account balances of all MDAs. Obaro also said that when the apex bank asked Remita to refund what it received, it promptly complied as a mark of respect for the CBN as the regulator.

    The CEO told the Senate panel: “We feel used, abused, unappreciated and abandoned by the country for which we stuck out our necks and faith to deliver the platform that made the TSA possible. In other climes, every citizen would be proud of, acclaim, encourage and motivate us for the feat, to advance the frontiers of greater technological breakthroughs and innovation.

    “In any case, pray, how could enforcing the terms of a validly signed and subsisting contract amount to fraud when discussions were already ongoing on whether the terms of the valid contract may need to be reviewed to recognise emerging realities? How can discussions on the need to re-negotiate contractual terms due to increased volumes form the basis to seek to throw the baby away with the bath water?”

    As at today, the Federal Government is at the cross-roads – how to navigate the contentious agreement it signed with SystemSpecs to use Remita as a tax payment platform for which the company is entitled to its commission. When the dust settles, Nigerians will know which of the options the Federal Government has found suitable.

  • Making TSA work

    Making TSA work

    •REMITA should be reviewed

    Allegations of fraudulent practices concerning the Treasury Single Account (TSA) have highlighted the need to undertake a comprehensive review of REMITA, the e-collection platform on which it is based.

    The most serious of the charges appears to be the claim that N25 billion had been fraudulently received by SystemSpecs, REMITA’s owners, ostensibly in transaction fees via the TSA scheme, allegedly in violation of Section 162 (1) of the 1999 Constitution. The Trade Union Congress (TUC) further complicated matters by alleging that REMITA was bringing in N25 billion a day for the company. The Senate has directed its Joint Committee on Finance, Banking and other Financial Institutions and Public Accounts to investigate the matter.

    As a unified structure of government bank accounts, which provides a consolidated view of its cash resources, the TSA’s advantages cannot be over-emphasised. This is even more so of Nigeria, where the massive misappropriation of public funds has convinced the Buhari administration to fully implement the TSA programme which began under his predecessor, former President Goodluck Jonathan.

    Since its full operation commenced in August, it has seen government revenues flow from the nation’s banks to the Central Bank of Nigeria (CBN). Banks which attempted to conceal accounts have been penalised, while revenue-generating parastatals whose operations might be hampered by TSA have been granted waivers.

    The huge quantum of cash in government revenues remitted to the CBN has attracted questions regarding the size of SystemSpecs’ transaction fee. In contrast to the allegations that it took N25 billion, whether daily or as a total sum, the company has said N7.62 billion was collected in transaction fees since the scheme commenced in May 2012, and was shared by SystemSpecs (50 per cent), the 20 participating banks (40 per cent) and the CBN (10 per cent). The company also claims that transaction volumes reached N1.36 trillion, as opposed to the N2.5 trillion being alleged by its traducers.

    These controversies point to other issues. Since REMITA is essentially software, why is it that there does not appear to be the option of making a one-time or periodically-renewable payment for licensing it, as is the case for other banking software? There is the similarly fundamental question of exactly how the deal was struck, especially how the sharing formula of the transaction fee was arrived at. It does seem to be obvious that SystemSpecs is picking up a princely amount for what amounts to merely the installation of software.

    It has been argued that the one per cent transaction fee is relatively low, and is apparently better than the higher percentages negotiated by various collection agencies that existed before the TSA. However, the sheer size of the transaction volumes makes a compelling case for a reduction, possibly to 0.5 per cent; there is no reason why a government cost-reduction measure should become a major profit centre for a private firm.

    A comprehensive review of the TSA would have several benefits. It would reassure those who have misgivings about it; it would be in keeping with the transparency and accountability mantra of the Buhari administration; it would be part of a process of continual refinement which can only make the platform’s operations more efficient.

    As the country adjusts to the necessarily rigorous demands of the TSA era, Nigerians would do well to avoid criticising the e-collection platform for partisan political purposes. A number of political figures from the Peoples’ Democratic Party (PDP) have excoriated the TSA system and have latched on the N25 billion controversy as proof of their allegations. Given the party’s inability to fully implement the system when it was in power, such accusations are unhelpful and do not lessen the advantages of the system. If the TSA is reviewed in good faith, it will be to the benefit of all.

  • Jega and the TSA

    Jega and the TSA

    INEC need not be excused from the federal accounting consolidation exercise

    Any submission, observation or comment by the immediate past national chairman of the Independent National Electoral Commission (INEC), Professor Attahiru Jega, deserves scrutiny. On account of his stellar performance in office as Chief Electoral Commissioner, Professor Jega has earned himself the respect of many Nigerians. Under him, the commission advanced the role of technology in the conduct of polls and guaranteeing the sanctity of the ballot box.

    This must have recommended him for delivering the keynote address at the e-Governance Forum held in the federal capital, Abuja, where he suggested that the Federal Government should exempt the commission from the newly introduced Treasury Single Account (TSA). The professor of political science and former Vice-Chancellor of Bayero University, Kano, called attention of participants at the forum to the peculiarities of the electoral commission; arguing that the commission needs easy access to funds appropriated for it in order to prepare well ahead of the next election.

    As many scholars have pointed out, the task of preparing for the next general elections start immediately after one has been concluded. Timelines are usually set and officers made to commence work. Where the timelines are missed on the erroneous assumption that four years is a long time, logistics becomes a huge challenge. This was a major problem in 2011. Funds were not released until a few months to the election, thus affecting registration of voters, importation of ballot boxes and printing of ballot papers. It was so obvious that INEC was not ready such that the first election had to be hurriedly called off hours after commencement. In the 2015 elections, too, production of the Permanent Voter Cards and the card readers nearly marred the conduct of the elections. This would have been disastrous if not arrested quickly on the basis of understanding shown by some major players. Even then, malfunctioning of some card readers has been cited before election petition tribunals.

    We, therefore, understand the fears of Professor Jega as the health and growth of democracy in the country is hinged on the sanctity of the electoral mechanism. We recall too that it took a while to get the National Assembly grant financial autonomy to INEC.

    However, the rationale behind the introduction of the TSA is too significant to be so easily ignored. We note that following the directive to all ministries, departments and agencies to consolidate their accounts in the Central Bank of Nigeria (CBN), with a view to curbing leakages, excesses and ascertaining the true trading position of the Federal Government, a case-by-case assessment was undertaken to determine where the overall objectives could be harmed. The Nigerian National Petroleum Corporation and a few others with mandatory obligations to be met were therefore exempted.

    It is obvious that the government realised that more agencies might have to be freed after a while, but the objective of closely monitoring the finances of government must be accomplished. It will not hurt INEC if this initial process is completed within one year. By then, the necessary processes, procedures and mechanisms would have been established and mastered by all concerned.

    We are satisfied that the leadership of INEC as currently constituted has not complained about any untoward effect of the exercise on plans towards conducting the Kogi and Bayelsa governorship polls. Although Professor Mahmud Yakubu is new as the commission’s national chairman, Hajiya Amina Zakari, who filled the gap after Professor Jega’s exit, is still in the system. The template is not new; the logistics could easily be mobilised from neighbouring states and national commissioners seconded. The boxes used for the general elections are still largely intact and trained and tested hands could be mobilised and deployed for the purpose. We do not consider the TSA a sufficient ground for any lapses in conducting the polls.

    We call on President Muhammadu Buhari and his ministers to roll up their sleeves and ensure that INEC builds on the reputation it has already gained. The full commission should be put in place as soon as possible and any legislation towards making the electioneering process more transparent quickly put together by the Office of the Attorney General of the Federation. It is no longer acceptable that fundamental changes to the Electoral Act be introduced within 12 months to another general election. All participants and stakeholders in the 2019 elections, including the electorate, should be familiar with all the laws, rules and guidelines before 2017.

    We note the patriotic efforts of Professor Jega and call for more of such interventions from him and other credible patriots as and when necessary. We commend his maturity and note that, indeed, integrity has its reward.

  • APC slams Fayose for comments on TSA

    APC slams Fayose for comments on TSA

    The All Progressives Congress (APC) in Ekiti State has berated Governor Ayo Fayose for alleging that the Muhammadu Buhari administration  diverted N25 billion from the Treasury Single Account (TSA) to fund campaigns in Kogi and Bayelsa states.

    In a statement yesterday by its Publicity Secretary, Taiwo Olatunbosun, the party said Fayose’s opposition to the TSA was borne out of “ a desperate ploy to conceal fraud”.

    The party said Fayose’s vow to boycott the TSA meeting to be attended by all governors was “impunity taken too far and a smokescreen to cover up his fraudulent financial transactions”.

    Olatunbosun said: “TSA is to ensure that all government earnings are paid into a single account to ensure accountability and check fraud.

    “Many government accounts were used to perpetrate fraud as they were hidden by corrupt officials.

    “For a governor who describes himself as a friend of the poor to oppose a policy that will make the same poor people enjoy the benefits of transparent governance is the height of irresponsibility and a confirmation of allegations of fraud against him.

    “We can now see the reason why the governor has opened several channels of revenue collections to be paid into several phony accounts.

    “We wish to draw his attention to the fact that Ekiti State cannot be an island by refusing to abide with the financial regulations of the Federal Government, failure of which the state can be penalised.

    “He will surely be punished for his demeanour and plethora of unguarded utterances unbecoming of any reasonable person. He is grabbing and pocketing every accrued internally generated revenue for personal use. He is living large and not accountable to anyone.

    “Fayose’s attempt to mislead the public by referring to the TSA as a fraud should be ignored. The bogus N25 billion mentioned by Fayose as the commission received by the handling company is not correct.

    “The truth is that the one percent commission received by the firm is cheaper than the commission previously charged and it is shared by the company, the commercial banks and the Central Bank of Nigeria (CBN) and this is backed by law.”

     

     

  • Nobody has tampered with TSA cash, says Fed Govt

    Nobody has tampered with TSA cash, says Fed Govt

    •’Buhari won’t divert public funds’ 

    Minister of Information and Culture Alhaji Lai Mohammed has dismissed as a contrived distraction the alleged fraud in the Treasury Single Account (TSA) and the rumoured diversion of its funds to bankroll elections in Bayelsa and Kogi states.

    In a statement issued in Abuja yesterday, the minister said if those behind the accusation had allowed themselves some measure of honesty, they would have realised that there has not and there would be no such impunity under the President Muhammadu Buhari administration.

    “It is understandable that the psyche of those who are making the frivolous allegations concerning the TSA has been badly affected by the impunity that permeated the country under the immediate past administration, when unappropriated funds were freely used to finance elections and the public till was seen as an extension of personal piggy banks.

    “But the lies that have been willfully disseminated by scandalmongers over the TSA cannot and will not fly, because it was precisely to put an end to such impunity that Nigerians voted massively for President Muhammadu Buhari, who has an unblemished reputation for integrity, due process, transparency and the rule of law,’’ he said.

    The minister assured the citizens that no one has tampered with the TSA funds, saying though the TSA was initiated under the previous administration, the reason it has begun to enjoy a new lease of life and attract national attention was because of the political will and transparency demonstrated by President Buhari.

    “Those behind the rumour that a single company, Systemspecs, made N25 billion from charging one per cent of TSA funds that passed through the company’s software, Remita, may need to return to elementary school to get some lessons in arithmetic.

    “This is because in order for one per cent charge to fetch N25 billion, the funds accruing into the TSA must have reached N2.5 trillion. Yet, the total amount of funds in the TSA to date is still much less than N2 trillion.

    ‘’More importantly, at the time the Governor of the Central Bank of Nigeria (CBN) ordered that all monies that were erroneously charged as ‘revenue’ be returned to the TSA Account late last month, the TSA had less than N800 billion. It, therefore, beggars belief that anyone could attempt to mislead the public by raising a false alarm that a firm made N25 billion in TSA charges,’’ Mohammed said.

    He appealed to Nigerians not to allow those who have been funding their lavish lifestyles and encouraging corruption, to the detriment of ordinary citizens and without bothering about national interest, to sabotage the laudable TSA programme with contrived lies, dangerous innuendoes and outright misinformation.

  • N7.62b taken as fees for TSA, says SystemSpecs

    N7.62b taken as fees for TSA, says SystemSpecs

    SystemSpecs, the owner company of Remita, the e-payment and e-collection software deployed by the Federal Government to drive the Treasury Single Account (TSA), has said only N7.62 billion was taken as fees by the three implementers of the project as against N25 billion claimed by its accusers.

    In a document obtained by The Nation, the firm also described the N2.5 trillion transaction volume as false, saying only N1.36 trillion passed through 20 participating banks from the inception of the project to date.

    Senator Dino Melaye (Kogi West) last week alleged on the floor of the Senate that the firm was making about N25 billion per day for facilitating compliance by the MDGs with the TSA directive.

    Melaye accused those he described as “financial scavengers and economic cankerworms” of trying to sabotage the anti-corruption war of the Buhari administration by mismanaging the TSA.

    Debunking Melaye’s claims in a chat with our correspondent, a senior executive at SystemSpecs, who asked not to be named, said the e-collection company was never paid the said sum.

    The top executive said that at the commencement of the project in May 2012, it was agreed that one per cent of the sums collected from MDAs would be deducted and shared between SystemSpecs, the banks and the Central Bank of Nigeria in ratios of .5 per cent, .4 per cent and .1 per cent.

    A breakdown of the transaction inflow via the TSA showed that SystemSpecs is to refund N3.8 billion; 20 banks to refund N3.05 billion and the CBN is to refund N760.96 million, being total fees received by the institutions.

    Further analysis of the TSA transaction volume showed that N241.3 billion passed through Zenith Bank; United Bank for Africa, N150.08 billion; FirstBank, N122.01 billion; Skye Bank, N39.62 billion and First City Monument Bank, N39.15 billion among others.

    Others are Access Bank, N39.33 billion; Diamond Bank, N27.28 billion; Ecobank Nigeria, N15.51 billion; GTBank, N8.78 billion; Union Bank, N14.93 billion; Wema Bank, N26.68 billion among others.

    The SystemSpecs executive also said the over N200 billion, which passed through the banks from October 27 to date, was also part of the N1.36 trillion grand total figure.

    The source said the banks were holding talks with their lawyers and will sue the Federal Government for breach of contract.

    A copy of the service agreement between SystemSpecs Limited and CBN dated December 2013, reads in part: “SystemSpecs and CBN are entering into a mutually beneficial relationship for the purpose of deploying and integrating Remita e-Payment platform and T24 Banking application to facilitate and support electronic payments and revenue collection of Federal Government Ministries, Departments and Agencies (MDAs) through seamless interface with Government Integrated Financial Management Information System application in accordance with the terms and conditions set out in this agreement”.

    The agreement also mandates the CBN to ensure that whenever payment is made through Remita, it requests an electronic transfer from her account or account of its customers . Upon such request, Remita will transfer from the funding account the amount specified to the accounts of the beneficiary banks. The CBN agreed that such requests constitute authorization for the transfers.

    The agreement also indicated that either of the party shall have the right to terminate the pact where the other party commits a substantial breach of any of its obligations under the agreement which remains unresolved after 30 days written notice of the breach and intent to terminate the agreement by the other party.

    Part of the agreement also said either party shall have an immediate right to terminate the agreement if the other party becomes or is declared insolvent or bankrupt, becomes subject of any proceedings relating to liquidation, insolvency or for the appointment of a receiver or similar officer or in respect of its assets.

    Also, any monies due and payable to either party at the time of termination shall remain payable and become due immediately upon termination.

    System Specs was engaged to provide the Payment Gateway for TSA in 2011. While the payment leg of TSA commenced in January 2012, the collection component did not start as scheduled due to the resistance from  some quarters and the absence of the political will to push this through.

  • Senate to probe TSA operations

    The Senate on Wednesday asked its committees on Finance, Banking and other Financial Institutions and Public Account to carry out a holistic investigation of the operation of the Treasury Single Account (TSA) regime.

    Although the upper chamber commended President Muhammadu Buhari for the introduction of TSA, it said its designated committees should look into the operations of the policy and report back in four weeks.

    This followed the adoption of a motion entitled: “Abuse and mismanagement of the Treasury Single Account regime,” sponsored by Senator Dino Melaye and 31 others.

    Senator Solomon Olamilekan Adeola (Lagos West) in his contribution commended the mover of the motion.

    He noted that the fact that an All Progressives Congress (APC) Senator is sponsoring the motion is a clear indication of the commitment of APC as a party to the fight against corruption.

    Adeola said the appointment of consultants to collect revenue is a global practice which is not new even in the country.

    The Lagos lawmaker said he does not believe that anything had gone wrong with the implementation of the TSA until after investigation.

    He warned the Senate should not put the cat before the horse by making unsubstantiated assumptions until proper investigation is conducted to find out if anything had gone wrong.

    Adeola, who said there was no doubt that the government is making huge sums of money through the TSA noted that in one transaction alone almost half of the country’s annual budget was paid into TSA from banks.

    He said that although government accounts are now being known through the TSA policy, a particular bank still concealed an account containing N40 billion.

    He said the bank had already been fined N4 billion by the Central Bank of Nigeria (CBN).

  • ‘Fed Govt should ensure monitoring capacity in TSA’

    A Consultant Criminologist Col Oladipo Coker (rtd), has urged the Federal Government to ensure that monitoring capacity is built so that the Treasury Single Account (TSA) scheme will be consistent and continuous.

    President Muhammadu Buhari had directed all Federal Government Ministries, Departments and Agencies (MDAs) to close all accounts in commercial banks and start paying into a Treasury Single Account (TSA),

    Coker said to ensure the consistency of the TSA, everybody has to be on board and there will be need to make instructions in this regard so that where there is an infringement on the instructions, it is noticed and there must be a way to penalise.

    Coker, who spoke with our reporter in Lagos, said the scheme would promote proper accountability because the Federal Government would be able to control how money is coming in and going out of the treasury.

    He described the initiative as a good idea, saying it will give no room for illegal transfer of money and reduce mismanagement in the country.

    He noted that the TSA would help the country to reduce corruption if it is done in such a manner that ensures consistency.

    “This will also give room for accountability, and we will be able to track the entire accounting system in the country. All MDAs that generate money, government would be able to track it and make sure that they are paid into the Federation Account,” he said.

  • TSA ‘ll ensure  better control of appropriation, others

    TSA ‘ll ensure  better control of appropriation, others

    The Treasury Single Account (TSA) introduced by the Federal Government may have elicited fears in certain sectors of the economy, but a  financial analyst and President, Nigerian Statistical Association (NSA), Dr Mohammed Tumala dismisses the fears as baseless. He says the initiative will create room for accountability, proper budgeting and implementation. He  tells OLATUNDE ODEBIYI that TSA implementation will pull the economy out of the woods.

     

    The TSA policy has generated so much controversy. As an expert, how do you think the policy could be implemented for national benefits?

    When Pattanayak and Fainboim wrote on the TSA, they recommended the resolution of what they observed as inefficiencies in governments’ lacking effective control over cash resources due to the operation of multiple bank accounts. Such governments fail to earn interest on idle cash balances, borrow to cover for cash shortages since treasuries are unaware of these balances. Commercial banks that hold government balances extend the extra cash as credit resulting in liquidity management costs to the central banks. The implementation of such a policy leaves Nigeria with no option in view of the fiscal problems that it is going through. Under the TSA, Nigeria stands to benefit from better control of its appropriation, budget execution, and efficiency in its payment system and timely availability of fiscal data for planning. There will also be no banking fees and transaction costs to government, and for the central bank its liquidity management cost could be reduced.  The implementation is very straight forward. All public sector agencies are to be captured and there are various sub-accounts under the TSA to ensure smooth running of government. States and local governments are expected to key in for national efficiency. So far, those who express reservation or disagree with the TSA are looking from the view point of commercial banks. I do not know of any economic theory or reality that anticipates government to save. Governance is about continuous investment and spending to improve the lives of its people. It borrows when cash is in shortage or increases tax rates. Commercial banks anticipate savings from households for on lending to government and corporate entities and not the other way round.

    How can policy makers explore the tool of statistics to mitigate the impact of revenue gaps and ensure sustained economic growth?

    So far, the present government has taken positive steps like the TSA, reduction in ministries and others to improve fiscal operations. It is also talking about economic diversification, and this has a potential to improve tax revenues to government. In addition to these steps, policy makers need to improve their understanding of Nigeria’s demography and needs of its people. Comprehensive population statistics such as: how many, where, what age, what they do and proper identification of each and every one becomes necessary. Assuming a secured and peaceful country, it is clear what we need to do to sustain economic growth. If you have one naira put it into education. Policy makers also need to appreciate that Nigeria’s greatest asset is the high population and but also our greatest burden is the uneducated high population. We also have the burden of high cost of operating the governance structure we have.

    The latest Global Competitive index report was published and Nigeria ranked 124th among the 144 countries covered by the report. What is your reaction to this?

    There is no need reinventing the wheel. The report is very clear on what the report portends for the country. In addition to the ranking, this is how the report made a summary about Nigeria: ”Africa’s most populated country, Nigeria, is encountering sustainability challenges especially in the social domain. Access to basic services remains very low for millions of Nigerians: only 28 per cent of the population has access to basic hygiene, and less than 65 per cent enjoys improved water. Similarly, safety nets and healthcare services are available only to a minority of people. These issues, typical of a developing economy, may jeopardize the future competitiveness of the country as they limit the country’s human capital.” FDI is attracted by educated and innovative human capital, for Nigeria, we are likely to be seeing more of foreign portfolio investments than direct investments pending general improvements in our human capital.

    The NSA has been pushing for statistics-based planning for development, especially at the state level. What informed this?

    The Nigerian Statistical System, or NSS established by the Statistics Act 2007 is incomplete without the prescribed and complimentary components at the state level. Secondly, Nigeria’s national development plans and strategies integrate all the states. To make official statistics comprehensive and qualitative, states must have statistics capabilities and skills for production. These are the reasons why the Association is working vigorously with other stakeholders in advocating for states to establish and strengthen their statistical systems. There is indeed an established high and positive correlation between the level of use of statistics for planning and outcomes of poverty alleviation programs. The zero budgeting being adopted by the current government with the National Planning Commission in the driver’s seat is a laudable step at the national level. States need to key in.

    Most states are yet to establish Bureaux of Statistics as a strategic step towards standardising the NSS. What is your association doing to tackle this lapse?

    So far, what we have been doing is advocacy and training of desk officers to improve on their skills in producing official statistics. I must say that the response has been low, but development partners are also rolling programs for states and MDAs at the national level. The need for strong statistics capabilities at the level of states with the SGDs commencing in 2016 cannot be overemphasised.

    Funding may delay Bureaux of Statistics at the state level because the Executive and Legislative arms of government may not understand the relevance of these agencies. How do you intend to address this?

    Yes, some state governors that we have interacted with pointed to fiscal realities as a problem. We were however quick to point out that establishing a state statistical system does not necessarily translate to additional cost of governance. The states have departments of statistics either in ministries of budget and economic planning, finance or state planning commissions. Ministries also have departments of planning, research and statistics. What states need to do to establish their statistical systems is to legally empower the departments of statistics to connect and coordinate the activities of the statistics officers in planning, research and statistics of all MDAs. It is simply about creating a team out of existing employees.

    Finally, sir what is the state of the Chartered Institute of Statisticians of Nigeria Bill now and how do you think its enacting into law would be beneficial to the country   The Bill is currently before Mr. President for his assent. The Institute is being established to among other things to; advance the use of statistics in research and socio-economic analysis, enhance statistical practice and quality of statistics, promote and development of statistics education for both the public and the profession, and also to provide leadership and direction to the public in matters relating to statistical theory and its application. One major benefit to the nation is the uplifting of the standards used in the production of statistics within the National Statistical System and its consequence on the use of such data.