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Accountant General: TSA Now over N7tn

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ahmed idris
  • Accountant General: TSA Now over N7tn

The federal government has recorded over N7 trillion in the Treasury Single Account (TSA) as of March ending 2017, the Accountant General of the Federation (AGF), Mr. Ahmed Idris, has said.

In an interview with the Economic Confidential in Abuja, Idris further said the amount represents monies belonging to different ministries, departments and agencies (MDAs) put in a portal in such a way that government can view the entire balance as one.

“When we say we have over N5 trillion in TSA, it does not mean free funds for spending. These monies belong to various ministries, departments and agencies put in a portal in such a way that you can view the entire balance as one.

“The movement is now over N7 trillion. But as I explained earlier, these are not free monies. People should not be thinking of why is government borrowing to fund budget. These are budgeted monies for MDAs for projects and developments,” he explained.

Idris said the federal government, through the implementation of the TSA, has saved additional N4 billion monthly which could have been held by banks, noting that a total collapse of government activities would have occurred were it not that TSA was in place.

According to the AGF, “But let me also make a strong and important point. If not because TSA is in place and now that the recession is here, only God knows what would have happened. A monthly drain of over N4 billion and yet no revenue coming in and leakages continued. It could have been a disaster. It was government’s foresightedness and focus even as TSA was in place before the recession. And that is why we are floating and not sinking, and we will not sink, God willing.

“For instance, why would one university have over 120 bank accounts, and some of them even hidden and missing and carrying huge balances. We also discovered that there are costs associated with keeping these multiple bank accounts. Every month the government incurs over N4 billion in maintaining these accounts! Yet government is borrowing its own money. And to stop government from borrowing its money and for the fact that there was no commensurate returns on such monies, it was double tragedy! This is like a sword with two sides that can cut with any of the sides. Sanity was brought with the introduction of TSA.”

Speaking on the transparency in the disbursement of federation account monthly, the AGF noted that transparency and openness are key to the present administration, adding that it is a desire to institute discipline, good governance and trust.

“The government cannot be trusted if it says one thing and does another.
“The meagre revenue that has been accruing is being judiciously used and there is fiscal discipline in management of public resources. Let me give you an example in the previous administration. There was a time state government kicked against savings. Now because what they know and being practised by government of the day, they have decided to imbibe the culture of savings.

“What am I trying to say? We have excess Petroleum Profit Tax (PPT). These are excess taxes from petroleum tax. When we get money over and above budgeted figure, the excess is always being saved. If it were before, state governments and other stakeholders would say it should be shared. And this is what has been giving us buffer, especially at this time of recession.

“Despite the lean resources, we take from it and augment accordingly. And this is being done transparently. All the stakeholders are aware of balances at any point in time. Whatever revenue comes in is shown at National Economic Council meetings including all the governors who will be briefed by the Minister of Finance. They have seen the openness and have accepted what government has put in place and the economic team. This is why we are achieving remarkable success amidst recession,” he said.

On staff welfare, Idris said: “The welfare of the staff of the Office of the Accountant General of the Federation is one of my cardinal objectives since I assume office. It is even a core objective I must say as managers of the treasury. Welfare as you may know promotes the best out of the staff apart from making them serve the system very well. There are different types of welfare for the staff of the OAGF. Some border on entitlements, training to enhance the capabilities of the staff. We have also done very well in the provision of brand new staff buses we sourced from public spirited organisations including banks.

“On the part of the Federal Treasury Academy, we have done very well in building hostel facilities, renovation of infrastructure and provision of generators, furniture for the classrooms and the auditorium and the provision of sporting facilities among others. Right now, there is an ongoing discussion with some real estate developers to build four hundred one bed-room and two-bedroom houses at our land situated at Federal Treasury Academy Orozo, Abuja.”

According to him, “These developments are targeted at lower cadre officers. All these are some of the initiatives we have put in place. We pay the first 28 days to staff on first come first serve basis and each month we set aside the sum of N5 million towards that. Any staff that gets admission to tertiary institutions on part-time basis and would not disrupt his or her job schedule is allowed. So far we have given approval to such staff almost one thousand, most especially Nasarawa State University and University of Abuja.

“We train them and also promote them, we maintain facilities here at the headquarters, we maintain and buy new furniture, apart from making the office environment conducive for work. This is part of motivation, this is part of welfare.”

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.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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