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FG Saves N48bn from Treasury Single Account

The implementation of the Treasury Single Account by the Federal Government has resulted in a monthly savings of N4bn in cost of funds such as bank charges, accounts maintenance cost and others imposed by Deposit Money Banks.

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Treasury Single Account
  • FG Saves N48bn from Treasury Single Account

The implementation of the Treasury Single Account by the Federal Government has resulted in a monthly savings of N4bn in cost of funds such as bank charges, accounts maintenance cost and others imposed by Deposit Money Banks.

Having been introduced exactly a year ago, a total of N48bn has so far been saved by the government.

The Accountant-General of the Federation, Alhaji Ahmed Idris, confirmed the savings by the government during an interview with our correspondent on the sidelines of a sensitisation workshop on continuous audit in Abuja.

The TSA is a platform, which was used by the government to unify all its accounts by ensuring that all money belonging to the Federal Government is kept with the Central Bank of Nigeria.

The initiative, which took off fully in September 2015, had been complied with by over 900 agencies of the government.

Since the commencement of the TSA, there have been series of job losses in banks owing to a decline in deposits.

Ecobank Nigeria, for instance, has sacked over 1,040 of its employees while Diamond Bank Plc sacked over 200 members of its workforce.

But Idris said since the commencement of the TSA last year, the government had been able to block revenue leakages and wastage.

He said, “The Treasury Single Account is one of the initiatives to block leakages. Part of the leakages that we have is the cost of borrowing. I can assure you that by the TSA implementation, we have saved the Federal Government over N4bn cost of funds per month.

“Every month, we used to incur as much as about N4bn and that is no more because of the application and implementation of the TSA. Leakages have been blocked. There is more transparency of expenditure and more control and we are doing a lot more in blocking leakages.”

He said with effective blocking of loopholes, the government had been able to effectively ensure prudent management of its resources.

Idris said, “The blocking of leakages is effective because everything is being monitored. Resources are scarce and so we cannot just roll out resources without enough mechanism to monitor what it is being applied for.

“We will not do only a post-audit exercise; we will also do a pre-audit so that whatever is being done is verified before expenditure is incurred.”

Apart from the TSA, he said the government was also taking other initiatives to improve the management of public finance.

His said at a time when the resources of government were becoming lean owing to the economic downturn, there was a need for the country to get value for money in the conduct of government business.

“We are also taking other initiatives to ensure prudent management of resources; we cannot embark on any wasteful venture anymore.

“It can no longer be business as usual and so the MDAs are committed to this and in particular, you can see the Presidential Initiative on Continuous Audit, which is another key thing because you don’t just roll out resources, you control utilisation,” he added.

According to Idris, the introduction of the TSA had reduce theft of public funds, recalling in 2011, the country lost a whooping sum of N70 bn to failed banks.

He said in the past, MDAs operated more than 10,000 accounts that were mostly dormant and that the funds were not used to develop the country.

He also declared that the country had thus far recorded about N4.36tn after unifying all the government’s accounts under the new arrangement.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israel Gaza

Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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