The Central Bank of Nigeria (CBN) has begun probing banks to ascertain those that have complied with its directive on the transfer of public sector revenue accounts to the central bank account.
New Telegraph learnt yesterday that the investigation followed the expiration of the June 30, 2015 deadline that the banking watchdog set for the exercise.
“Yes, the CBN examiners were in our bank. They spent just a few hours and they found nothing,” confirmed the senior treasurer of one of the big lenders in the country, who craved anonymity because he was not authorised to speak on the issue.
Spokesman of the CBN, Mr. Ibrahim Mu’azu, also confirmed the presence of examiners in the banks, but added that the exercise was a fact-finding mission, which would help both the Federal Government and the CBN in its monetary policy. He said: “This is not a probe; it is like a study to enable us to know the amount of public funds with the banks, which will help our monetary policy strategy.
“Besides, this is also part of our support to the government. You are aware that banks keep government money and borrow the same money to the government.
This is one of the things we try to guide against. “Also, don’t forget that Ministries, Department and Agencies (MDAs) are the ones that have the right to move their accounts from banks. Banks can’t move MDAs’ accounts if the latter do not give such orders.”
The CBN had, on June 30, posted a letter on its website, reminding banks of the deadline for compliance with the exercise. The letter, which was signed by A.O.
Idris on behalf of Director of Banking Supervision, stated: “We have observed with dismay that most banks are yet to comply fully with the provisions of the circular directing banks to transfer all revenue accounts collected on behalf of the Federal Government and its agencies to CBN account within 24 hours of the value date of such collections with effect from February 28, 2015.
“Banks are therefore, by this circular, directed to ensure strict compliance with effect from the date of this circular, failing which severe financial and administrative sanctions will be imposed. For emphasis, June 30, 2015 shall be the final deadline.”
In November 2013, the banking watchdog had, at its 235th Monetary Policy Committee (MPC) Meeting, mooted the idea of the Single Treasury Account (TSA), which was implemented in February 2015.
TSA is a unified structure of government bank accounts that gives a consolidated view of government cash resources. It is a system, whereby all monies belonging to the government are domiciled in one account with the CBN, with payments out and collection into the account done via an electronic payment platform.
In the communiqué after the MPC meeting, the CBN warned that the delay in returning government accounts to the apex bank was adding to the high cost of government debt as a result of inadequate cash flow management.
TSA has become a useful model governments use to establish centralised control over its revenue through effective cash management. It enhances accountability and enables government to know how much is accruing to it daily. The TSA pilot phase involved 217 ministries, department and agencies (MDAs) in Abuja.
Last year, the implementation was extended to all MDAs outside Abuja; hence all Federal Government-related payments were executed via an electronic payment platform, Remita, indigenous software developed by Systemspecs, a Nigerian software development company.
The extension of the epayment for government services under the TSA had resulted in about N500 billion savings for the Federal Government in the form of unutilised fund
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