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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.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

CBN to Extend Credit Risk Management System to OFIs

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In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion

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The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

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Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions

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TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

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