The Nation Newspaper

Tag: TSA

  • TSA: AGF insists on tomorrow’s deadline for accounts’ closure

    TSA: AGF insists on tomorrow’s deadline for accounts’ closure

    The Accountant- General of the Federation, Alhaji Ahmed Idris, has said there is no going back on tomorrow’s deadline to Ministries, Departments and Agencies (MDAs) to close all Federal Government accounts with commercial banks.

    He said the directive is in line with the new Treasury Single Account( TSA).

    The directive was contained in a statement by the Deputy Director( Press) of the OAGF, Mrs. Kenechukwu Offie.

    The statement said: “The Office of Accountant- General of the Federation hereby reassures all Ministries, Departments and Agencies (MDAs) as well as the general public that the September 15, 2015 deadline for the closure of all accounts of Federal Government MDAs with the commercials banks is realistic, achievable and will not be shifted forward.

    “This is to correct speculations making rounds in some quarters of the media, that the deadline may not be feasible.

    [ad id=”403656″]“The Accountant-General of Federation, Alhaji Ahmed Idris emphasizes that Implementation Guidelines have been developed and will soon be made available to all interested parties and the general public.

    “The Office of the Accountant-General of the Federation, in line with its statutory mandate and directives by Mr. President on the TSA, will continue to provide all necessary information and technical support to all MDAs, Banks and the general public to ensure a smooth, seamless and transparent implementation of the TSA/e-Collection policy.”

    President Muhammadu Buhari had set a deadline of Tuesday, September 15 for full compliance with his directive that all revenue due to the Federal Government or any of its agencies must be paid into the Treasury Single Account (TSA) or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved.

    A circular to all Ministries, Departments and Agencies by the Head of the Civil Service of the Federation, Mr. Danladi Kifasi, urged the MDAs to ensure strict compliance with the deadline to avoid sanctions.

    The circular said a number of MDAs were yet to comply with the August 7, 2015 circular, which conveyed President Buhari’s original directive on the payment of all Federal Government revenue into a Treasury Single Account.

  • CBN advises state govts to adopt TSA

    CBN advises state govts to adopt TSA

    The Central Bank of Nigeria (CBN) on Wednesday in Abuja advised state governments to adopt the Federal Government’s system of using a single account for all its revenue deposits.

    Mr Kure Abubakar, Head, Client Services at the CBN, gave the advise while presenting a paper on “Understanding Treasury Single Account (TSA)’’at the close of a two day workshop on the Fiscal Responsibility Act.

    The News Agency of Nigeria (NAN) reports that the workshop, which began on Tuesday, was organised for government revenue generating Ministries, Departments and Agencies (MDAs).

    He said the TSA, if adopted by states, could help them to get maximum benefits.

    Abubakar, while answering questions from participants urged them to comply with the Federal Government’s directive and adhere to the Sept. 15 deadline to avoid sanctions.

    On the sidelines of the workshop, he told newsmen that some MDAs had complied and that if others failed to comply, they stood the risk of being sanctioned by the president.

    “There are sanctions and the directive says all erring MDAs will be penalised and that is enough because that is the type of political will we need.

    “If you don’t comply the consequence is yours. I cannot say specific penalties but I believe the president has the authority to penalise either the Managing Director or Chief Executive of such MDA.

    “So those that refuse to comply are on their own or they should show reason to the government why they cannot comply,’’ he said.

    He also said that MDAs that require a waiver could do so by making a presentation to the president stating why such should be granted.

    “The presidential directive says that you can make a presentation to the president for a waiver if necessary.

    “If the justifications are quite good Mr President in his own wisdom can grant the waiver but for now all the MDAs should work towards achieving the deadline of Sept. 15,’’ he said.

    Mr. Khurima Nthara, World Bank Lead Economist and Programme Leader for Nigeria, while commending the Federal Government on the TSA implementation, said that it had been tested in other countries and it had been effective.

    He said the concept would help government to reduce borrowing because it would enable it have a more consolidated view of the cash that it has at hand.

    “I think the TSA has got a very simple concept. You want the government to have a good view of all the cash that it has in one single account.

    “You don’t want the situation that one department or ministry has funds lying idle in one commercial bank when another is in need of those cash and the government has to borrow to make sure that the other ministry or department has access to funds.

    “So the concept of the TSA is that all funds should be consolidated so that whichever agency is in need of cash at the moment should have access to those funds,’’ he said.

    One of the participants, Mr. Ibeh Benneth told NAN that the workshop had helped him to understand how the Fiscal Responsibility Act works and how to go about the TSA remittance.

    He further said that the workshop gave him a better understanding of the importance of the TSA to the nation and that it would ensure transparency in governance.

    “I know I have been hearing of TSA but confronting it very closely today was good.

    “We have discussed it extensively in our organisation but we did not know how to go about it.

    “But now we have an idea and even though we had previously gotten an exemption letter, it is obvious that letter will not work, we have to start the process afresh.

    “We saw the TSA as a directive that government just wants to be seen to be doing something but now I know that it is with good intentions,’’ he said.

     

  • 15 things you need to know about TSA

    I have been worried. No, it is not about the weather. It is not about the fortunes of my team, Arsenal. It is about TSA. It is about what this acronym portends to so many brands in the country. I do not care about the name your call your brand.

    The present dispensation will affect your brand for good or bad. Do you want to know why? If the economy melts, it melts everything that is dependent on it, particularly the manufacturing and service areas. However, I digress.

    Before now, we have been living on good luck. Everybody just got lucky. Tompolo got lucky at NIMASA. Diezani got lucky with petrol-dollar. Aunty Ngozi got lucky coordinating the economy. Well, not any more. The drumbeat has changed. My mother had warned me not to depend on good luck but to work hard and earn my “pay.”

    With the advent of PMB, the concept of good luck is dead. PMB has cleaned the slate. He came to the party not with champagne and caviar, but with carrot, stick and a short acronym, TSA. Suddenly, everybody is talking at once. Some brands have even sponsored researchers to unveil the concept of TSA.

     What is TSA? Why are the banks afraid of TSA? Who is pushing it? Is it Buhari-nomics? Unfortunately, you will not get answers to these questions here. What you will get are 15 things you need to know about the Treasury Single Account or TSA. If you are not satisfied, refer to the manufacturer.

     

    Here we go:

    • TSA will promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution of the Federal Republic of Nigeria.
    • With TSA, all receipts due to government or its agencies will be paid into TSA resident in Central Bank of Nigeria (CBN).
    • Since TSA is a unified structure of government bank accounts, it enables consolidation and optimal utilisation of government’s cash resources.
    • TSA provides a consolidated view of government’s cash position always.
    • The CBN, SEC, CAC and NPA, NCC as well as FAAN and NCAA, NIMASA, NDIC, NSC, NNPC, FIRS, NCS, MMSD, DPR and other government agencies will implement TSA.
    • When linked to TSA, the accounting system will be configured to allow the agencies access to funds based on their approved budgetary provisions.
    • The implementation of TSA brings transparency, efficiently and accountability.
    • TSA is part of the public financial management reforms under pillar three of the National Strategy for Public Service Reforms towards vision 20:2020.
    • TSA addresses impediments to effective and efficient cash management.
    • TSA ends problems of fragmented banking, which affected government’s ability to undertake efficient cash planning and management as required by the Fiscal Responsibility Act.
    • Wth TSA, government can track its expenditure in a timely manner.
    • TSA makes it possible for flexible operations, contrary to past regime where officers must get to their desks before effecting transactions.
    • SA enables online real time transactions, meaning payment can be made from any point in the world.
    • TSA instills fiscal discipline and prudence as over 1,000 dormant or idle accounts will remain shut.
    • With TSA, the average monthly overdrafts with the CBN fell from the overdrawn amount of N102 billion in December 2011 to N4.461 billion credit in September 2012 with 93 MDAs out of over 400.

  • TSA: Kano eyes N10b monthly

    Kano State Finance Commissioner, Prof Kabiru Isah Dandago has said the state government is going to generate N10 billion revenue monthly, through the blockage of leakages and use of  treasury single account.

    The Commissioner who spoke with reporters shortly after the dinner organised by the Institute of Chartered Accountants of Nigeria (ICAN) (Kano-Jigawa state branch), said the government is currently in the process of reform, so as to  enhance its revenue base for self-reliance.

    He said: “The present Kano State government was first to introduce single treasury account in July, 2015, before the Federal Government.

    “Single treasury account introduced by Dr Abdullahi Umar Ganduje-led state government is a deliberate policy to block revenue leakages and jack up revenue generation from N1. 5 billion in the recent past to  about N5 or N10 billion.”

    Also, the Commissioner said all the revenue sources of the government is now remitted into one account, pointing out that no one is in doubt about how or where to deposit government money.

    Dandago said sources of revenue to Lagos State government are similar to that of Kano’s, adding that Lagos  however generates N20.5 billion monthly, while Kano  state government generates only N1.5 billion.

    “Why we are not generating as high as Lagos State is simply because the money goes to different baskets, ending with peanuts,” he said.

    However, Prof Isah admitted that under the present government, they will close up the revenue generation  gap like Lagos government and jack up their revenue base to the region of  N10 billion.

  • TSA: Depositors to get higher interest

    Depositors are to get more interest on their deposits in banks when the implementation of the Treasury Single Account (TSA) policy by the Federal Government and some state government begins, Managing Director, Meristem Wealth Management, Sulaiman Adedokun, has said.

    The TSA is a unified structure of government bank account enabling consolidation and optimal utilisation of government cash resources. It is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.

    The Federal Government has ordered each and every Federal Government ministry, department or agency to start paying into a TSA for all government revenues, incomes and other receipts. According to the directive, this measure is specifically to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.

    Adedokun said although the TSA is going to hurt banks, making less deposits available to them for on-lending to customers, depositors should expect a windfall from the policy. He said: “When government earnings are gathered in one single account, there will be many things to work out, especially funding of certain sectors of the economy. But that is on the logistics part of it. The actual impact of this is the crowd out effects from the banking sector because the interest will go up, as banks go on looking for more deposits”.

    He said the era of cheap funds from ministries, departments and agencies of government (MDAs) enjoyed by the banks are over.

    “They will have to look for other sources of deposits. That pushes the interest rate up, and that is where the money market fund will enjoy because you will now have rates that you can negotiate better with the bank,” he explained.

    “And again, with this, we have a better declaration of Nigeria funds. There has been general apprehension that with oil price declining, the economy is doomed. But the recovery we will be getting, if pursued effectively, will cushion the impact of the oil price fall.”

    Adedokun added that states may  get better allocation under the TSA regime because leakages will be blocked.

    For him, it is either government increases its revenues base, or blocks the cost of operation.

    “Blocking the leakages increases the margin of fund available to the states. We do not expect the oil price to go up significantly in the next three to five years because there is nothing showing that pattern. The change that has come to the global oil sector is a permanent change. It is a technology-driven change. Don’t forget that with that change, oil will eventually become something that is not of so much value because of new discoveries,” he said.

    Adedokun said his company has just concluded a N1 billion offer for Money Market Fund and Equity Market Fund which investors keyed into. He said the money market fund is for investors that want to pursue capital growth and earn steady income while the Equity Market Mutual Fund are for investors who can take risk and have their eyes on the long term.

    Adedokun said: “As an organisation, we want to drive value for our clients. We want to reach out to people that will be part of our success story. The Meristem Money Market Fund is for investors who are interested in a steady stream of income at money market rates while preserving the value of their investment, while the Meristem Equity Market Fund is aimed at investors who have a long term investment perspective”.

    For those that invested in the money market fund, the company will channel their money into deposits in banks, treasury bills, commercial paper, and bonds while the equity market fund is for stocks.

    He added that the money market fund’s objective is to seek current income and stability of principal by investing in a select portfolio of short term money market securities, while the Equity market fund’s objective is to seek long term capital appreciation through investment in equity securities with a focus on a portfolio of stocks listed on the floor of the Nigerian Stock Exchange.

    Adedokun explained that the equity market fund is for all classes of investors that are willing to take more risk for returns on investment while the money market fund is also ideal for all classes of investors that value liquidity and security of assets.

  • TSA and the rest of us

    It is no more news that over 400 ministries, departments and agencies [MDAs] saddled with the responsibility of overseeing government’s functions in various sectors such as communications and media, economy, energy, intelligence and others must implement the Treasury Single Account [TSA] initiative after President Mohammadu Buhari’s announcement.

    A friend who dines with the financial bigwigs told me that the reason the President is compelling the MDAs to implement the TSA is because there is a history of poor tracking of internally generated revenue [IGR] and other government revenue and inflows. Other reasons advanced by my friend is because of the “non-remittance of revenue by collecting entities, misappropriation of revenue, collections, inadequate and out-right lack of records by the MDAs”.

    However, information from the Central Bank of Nigeria [CBN], indicate that the Federal Government’s Independent Revenue e-collection initiative “is designed to automate revenue collection of MDAs directly into the federal government’s Consolidated Revenue Fund (CRF) account at the CBN through Remita e-collection platform and other electronic payment channels”.

    The TSA is a unified structure of government bank accounts, which enables consolidation and optimal utilisation of government cash resources. It is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.

    Not too long, the CBN had advised all banks in the country to establish necessary systems in their branches and to sensitise their staff on the federal government’s electronic revenue collection scheme (e-collection) because of the commencement of the TSA.

    President Buhari’s latest declaration is clearly a way to curb revenue-related corrupt practices in the MDAs. Following the President’s announcement, many MDAs are already in the process of adopting the TSA. “The President’s pronouncement will significantly affect the volume of liquidity in the banking sector but it would curb corruption.

    Besides, TSA will promote transparency and facilitate compliance with Sections 80 and 162 of the constitution”, a source at the CBN said. TSA would help to block leakages and uncover idle cash, which usually seats in the bank’s high-yielding interest accounts. TSA would also allow complete and timely information of government cash.

    With the TSA now in force, where does that leave the rest of us? Three options: 1. Increase your earnings in the face of declining revenue. 2. Collect your debt and accumulate good debts. 3. Refer to number 1.

  • Treasury Single Account not punitive, says AGF

    Treasury Single Account not punitive, says AGF

    The Accountant-General of the Federation (AGF), Alhaji Ahmed Idris, has said the introduction of the Treasury Single Account (TSA) is not a punitive measure targeted at any government establishment.

    Idris made this clarification in Abuja while receiving members of the Committee of Vice Chancellors of Federal Universities who were at the Treasury House to discuss the operations of the universities.

    He said: “The introduction of the TSA is not a punitive measure targeted at any government establishment or an attempt to jeopardise the peace and stability of the university system, but part of the reforms being introduced by this administration to institutionalise a more effective and transparent management of public finances in the country.”

    He maintained that the TSA is aimed at creating a single pool where all government’s receipts are kept in one account, thus making it possible at a glance to know the state of all the accounts.

    In order to ensure smooth implementation of the TSA, Alhaji Idris said the Office of the Accountant General (OAGF) has set up a special committee to be headed by a director, to address all issues or enquires from the affected ministries, department and afencies (MDAs) and make sure the operations of specialised agencies such as  the universities are not hampered by the project.    He reassured the visitors that the OAGF will collaborate with the universities to ensure that all matters raised are addressed to ensure that the universities are more efficient and transparently managed.

    The AGF allayed fears being expressed by some MDAs that the directive of President Muhammed Buhari on TSA for the e-collection of government receipts will negatively affect the operations of some specialised agencies. He said: “It will rather improve their efficiency and increase the rating of the nation’s economy.”

    Earlier, the leader of the delegation and Secretary of the Committee of Vice chancellors, Prof Michael Faborode, told the AGF that the universities by their operations and services rendered, are peculiar establishments which should not regarded as purely public service or categorised as revenue generating agencies. He therefore  called for a review of the inclusion of the universities in the TSA circular.

    He expressed fears that the implementation of the TSA in the university system may distort effective functioning of the university system, since according to him, their allocations are hardly enough to cater for their basic needs.

  • Lagos, Abuja airports for US transportation agency’s assessment

    Lagos, Abuja airports for US transportation agency’s assessment

    The American Transportation Safety Administration’s (TSA’s) Attaché for Central and West Africa, Ms Mcneir Loretta, has arrived in the country for a three-day working visit.

    The visit is a follow-up assessment of the agency’s Aviation Security Audit which was carried out on the Murtala Mohammed International Airport (MMIA), Ikeja, Lagos and the Nnamdi Azikwe International Airport, (NAIA), Abuja in December 2013.

    Ms Mcneir, who is based in Dakar, Senegal, on Monday began her programme with a visit to the Acting Director-General of the Nigerian Civil Aviation Authority (NCAA), Benedict Adeyileka.

    She inspected facilities at the MMIA, Ikeja, in company of NCAA Aviation Security officials.

    Ms Mcneir is scheduled to meet with the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Saleh Dunoma, before going to Abuja for a visit to the Permanent Secretary of the Ministry of Aviation, Dr Jamilla Shu’ara.

     

  • NLC shelves proposed strike

    NLC shelves proposed strike

    Organised labour in Edo State has suspended its planned indefinite strike scheduled to begin yesterday.

    The decision to suspend the strike was contained in a communique issued after an enlarged state executive council session on Monday.

    NLC threatened to embark on an indefinite strike if the government refused to pay the arrears of 10.5 per cent Teachers Salary Allowance (TSA), release of backlog of promotions, recall the 920 teachers whose salaries were stopped in December, among others.

    The State Nigeria Labour Congress (NLC) Chairman, Emmanuel Ademokun, had said there was no going back on the strike until all their demands were met.

    The communique noted that the government has made an offer to meet the request of organised labour in relation to the 53.37 per cent salary relativity in question.

    Ademokun said Governor Adams Oshiomhole wrote an apology letter to the unions on the alleged manhandling of some labour leaders by Permanent Secretary of the Ministry of Environment, Lawrence Loye, last year.

    He said the government agreed to pay a part of the salary relativity and added that the unions were waiting on the directive of the national leadership of the Nigeria Union of Teachers (NUT) on the next line of action based on the assessment test and on the sacked 920 teachers.

    The NLC chairman said they would support whatever action the planned to take.

     

  • Edo civil servants begin strike

    Edo civil servants begin strike

    Civil servants in Edo State yesterday began an indefinite strike.

    A meeting between Governor Adams Oshiomhole and Labour leaders on Monday night deadlocked.

    The state Chairman of the Nigeria Labour Congress (NLC), Emma Ademokun, reportedly told the Governor that members of the Joint Negotiating Council were not present.

    Another meeting has been scheduled for noon today.

    Workers, who reported for duty, were sent home by Labour leaders.

    Pupils were asked to go home, while patients at the state-owned hospitals were discharged.

    Ministries and parastatals were shut.

    A patient at the Central Hospital said they have been asked to go home.

    NLC Vice-Chairman Sunny Osayande, who was seen enforcing the strike, said their ultimatum expired on Monday.

    It was learnt that authorities of the Central Hospital were unsure of what to do with a suspected kidnapper, who was paralysed, following the injuries he sustained during the exchange of gunfire with security agents.

    Courts in Edo State were opened yesterday despite the strike.

    A worker at the Edo State High Court, who spoke on condition of anonymity, said members of the judicial union were not invited by the leadership of the state chapter of the NLC and Trade Union Congress (TUC) for discussion on the strike.

    The worker said they did not have any contending issue with the government.

    Among the demands of the organised Labour are, the immediate implementation of the pending salary relativity structure of 53.37 per cent for the state workers, payment of the balance of 20 per cent consolidated health salary structure for health workers, payment of the balance of 10.5 per cent teachers’ special allowance (TSA) to primary school teachers.

    Others are implementation of 2011, 2012 and 2013 promotion exercise of public servants, immediate constitution of the state civil service commission as well as the recruitment of more workers to fill vacant positions caused by the retirement of workers in the state public service.

    At press time, it was gathered that the government team led by the Secretary to the State Government, Prof Julius Ihonvbere, was meeting the Labour leaders.