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FG Considers TSA Funds to Part-fund Budget

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  • FG Considers TSA Funds to Part-fund Budget

The Federal Government is currently planning a framework that will allow it to deploy some of the funds in the Treasury Single Account for the implementation of projects contained in the national budget.

The Accountant General of the Federation, Alhaji Ahmed Idris, disclosed this on the sidelines of a retreat on the TSA.

Since the policy became fully operational in September 2015, about N5.2tn has accrued to the account.

The retreat was attended by stakeholders in the private and public sectors of the economy.

Idris said while the implementation of the policy had been successful, there was a need to harness its immense potential in budgeting and debt management.

For instance, he said that while the policy had helped to reduce the amount of borrowed funds by the government, there was a need to have a mechanism that would allow the balances in the TSA to be used in a profitable manner for budget execution.

Idris said, “We have been able to run the TSA successfully and we have consolidated all resources of government agencies coming together into a single window to see how much government has in liquid. We have been able to track government revenue by seeing the inflow and that has helped us to harness the benefits of the TSA.

“The TSA is one of the critical aspect of our reforms. Beyond mere cash management, there is a need to look particularly in this time of recession to see how best we can deploy the large balances that we have been keeping with the CBN for the betterment of the economy

“We must sit and this retreat is just the beginning of this discussion, it is not an end to it. All the stakeholders will continue to talk and we will be advising the government appropriately. It is not something that we will do tomorrow; we have to sit on how we deploy them profitably into very efficient and very viable instruments. So all that need to be worked out.”

The Managing Director, SystemSpecs, Mr. John Obaro, said while the implementation of the TSA was turbulent at the beginning, it’s success had added value to the country and the economy.

He said, “Now that things have reasonably settled down, we can now begin to speak to real issues such as improved operational processes, and the utilisation of the massive data that is now readily available to government.

“This can be used for economic planning and a lot of other things can be derived from what is currently available.”

He said through the receive and payment platform provided by the company for the TSA policy, Remita, Nigerians would soon be enjoying better services though their mobile phones in making payments for government services.

Obaro stated, “We want to enhance our system to address a number of the challenges. For instance, we are aware that many people have had to go to the bank to make one payment or the other, but what we want to do is to move this to a mobile phone.

“In the coming weeks, people will be able to transact directly from their mobile phones to do all their TSA transactions. This is a way of ensuring that they are in better control without having to visit bank branches or even using debit and credit cards.

“This will go a long way in addressing some of the challenges that have already been identified.”

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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Finance

Federal Government Clears $120m Debt to Gas Companies Amid Nigeria’s Power Crisis

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Amidst Nigeria’s persistent power crisis, the Federal Government has taken a pivotal step forward by clearing a significant portion of its debt to gas companies.

A sum of $120 million has been paid out of the country’s $1.3 billion indebtedness to gas suppliers, offering a glimmer of hope for improved energy stability across the nation.

The Minister of Power, Chief Adebayo Adelabu, underscored the critical role of gas in power generation and highlighted how the mounting debts had severely hampered gas supply to electricity-generating companies, exacerbating the country’s electricity shortfall.

Nigeria heavily relies on thermal power plants fueled by gas for over 70% of its electricity needs, making the timely settlement of gas debts paramount for enhancing power generation capacity and addressing the nation’s energy deficit.

Addressing delegates at the 7th Nigeria International Energy Summit in Abuja, the Director of the Decade of Gas Secretariat, Ed Ubong, expressed optimism about the government’s progress in offsetting its financial obligations to gas producers.

He emphasized the importance of aligning gas and power sectors to foster sustainable energy solutions.

As Nigeria grapples with the multifaceted challenges plaguing its energy landscape, the government’s commitment to settling outstanding gas debts marks a pivotal stride towards revitalizing the country’s power infrastructure and ensuring reliable electricity access for its citizens.

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Finance

Nigeria Insurance Corporation Reimburses Depositors of 179 Closed Microfinance and Four Mortgage Banks

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The Nigeria Insurance Corporation (NDIC) has announced the successful reimbursement of depositors affected by the closure of 179 microfinance banks and four mortgage banks across the country.

The reassuring news came during the 45th Kaduna International Trade Fair, where NDIC’s Managing Director, Dr. Bello Hassan, explained the corporation’s unwavering commitment to safeguarding depositors’ funds amidst financial uncertainties.

Dr. Hassan, represented by Hauwa Gambo, the NDIC’s Deputy Director of Communication, highlighted the corporation’s proactive measures in protecting the interests of depositors.

The introduction of the Single Customer View framework has expedited the process of reimbursing depositors of liquidated banks, ensuring swift and transparent transactions.

The corporation’s collaboration with the judiciary has yielded positive results, facilitating the speedy prosecution of failed insured banks and resolving long-standing cases of bank liquidations like Fortune and Triumph Banks.

This concerted effort has significantly enhanced the debt recovery rate, enabling NDIC to declare full liquidation dividends to uninsured depositors of over 20 deposit money banks.

Furthermore, NDIC has embraced digital remote payment strategies, streamlining electronic funds transfers to verified depositors’ alternate bank accounts.

The introduction of the ‘Deposit Tracer’ initiative in partnership with mobile operators aims to address apathy among depositors with small balances, providing accessible avenues for claiming funds trapped in closed banks.

The initiatives underscore NDIC’s proactive stance in safeguarding depositors’ interests and ensuring financial stability in Nigeria’s banking sector.

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Banking Sector

85.51 Million Nigerian Bank Customers Face Withdrawal Freeze Over NIN, BVN Deadline

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As the March 1 deadline looms, an estimated 85.51 million Nigerian bank customers are facing the possibility of frozen accounts due to their failure to link their National Identification Numbers (NINs) and/or Bank Verification Numbers (BVNs) to their accounts.

Recent findings reveal the potential scale of the impending banking crisis.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that Nigeria had approximately 146 million active individual bank customers as of December 2022.

However, by January 26, 2024, only 60.49 million BVNs were recorded on the NIBSS portal, leaving a significant portion unlinked.

Meanwhile, about 104 million NINs had been issued by December 2023, highlighting the disparity between NIN issuance and BVN linkage.

The Central Bank of Nigeria (CBN) had earlier issued directives to banks, mandating them to restrict transactions on accounts lacking linked NINs and BVNs, with effect from March 1, 2024.

Any accounts found non-compliant risk being designated as ‘Post no Debit,’ rendering them unable to process further transactions.

Responding to the impending crisis, the Director-General of the National Identification Management Commission (NIMC), Abisoye Coker-Odusote, emphasized the need for the revalidation of Front-End Partners (FEPs) to ensure the integrity of the identity database.

She underscored the importance of NIN registration and urged collaboration with various stakeholders to expedite the process.

The Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, reiterated the significance of linking NINs to SIM cards to enhance national security.

Telecom subscribers were urged to comply with the NIN-SIM linkage directive to avoid service disruptions.

Meanwhile, financial service providers like Opay have issued reminders of the impending restrictions, urging customers to comply with the linkage requirements.

Amidst concerns, some customers contemplate transferring funds to compliant accounts to avoid potential financial setbacks.

As the deadline approaches, stakeholders are intensifying efforts to mitigate the impact of the impending banking crisis on millions of Nigerians.

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