Connect with us

Finance

TSA: FG Renegotiates Fees With Service Providers

Published

on

business solution - Investors King
  • TSA: FG Renegotiates Fees With Service Providers

The Federal Government has commenced negotiations with all service providers on the Treasury Single Account in a bid to reduce the cost of running the policy.

The Accountant-General of the Federation, Mr. Ahmed Idris, who disclosed this in Abuja on Monday, said though the TSA had saved the government about N40bn monthly that was hitherto being paid as bank charges, the government was still seeking ways of cutting costs.

Idris had appeared before an ad hoc committee of the House of Representatives, which was investigating the operations of the TSA.

The committee is chaired by a member of the All Progressives Congress from Kano State, Mr. Abubakar Danburam-Nuhu.

An indigenous firm, SystemSpecs, was engaged by the Central Bank of Nigeria in 2011 to provide the Remita platform on which the apex bank coordinates all accounts linked to the TSA.

Under the terms of the service, SystemSpecs is entitled to one per cent of each in-bound transaction and up to N5,000 for each out-bound transaction.

The firm was last paid in 2016, while as of December 2017, the total outstanding against SystemSpecs was in excess of N10bn for out-bound services.

This excluded the N7.6bn it initially earned as service fee but was later directed by the CBN to refund the money because there were issues to be reconciled.

The firm and the government have yet to come to an agreement on the total outstanding for in-bound payments.

Idris, the CBN and SystemSpecs confirmed the figure before the committee at the National Assembly on Monday.

But, at the session, the CBN and the AGF disagreed over which of them enjoyed the services of SystemSpecs most and should pay for its services.

The committee directed the CBN to immediately resolve the issue and pay SystemSpecs its outstanding service charge.

However, Idris, who appeared in company with the Deputy Director/Coordinator, TSA/e-Collection, Funds Department under his office, Mr. Sylva Okolie, said a downward review of the charges was on the table for discussion.

The AGF asked Okolie to explain further.

Okolie said, “It is good that this issue (cost of running the service) came up; we think that we can discuss it and we are already talking with the stakeholders.

“We know that there are advantages with the electronic platforms and the technology-driven system is the best for us. However, we still maintain that the cost of any transaction should not be more than N100.”

Speaking further on the operations of the TSA since 2015, Idris told the committee that N8.9tn had accrued to the account as of February 9, 2018, while N303bn was captured as consolidated balance.

The AGF, who represented the Minister of Finance, Mrs. Kemi Adeosun, also stated that 1,674 Ministries, Departments and Agencies had enrolled on the TSA platform.

In addition, he said another 3,118 TSA sub-accounts had been captured to date.

He confirmed that certain accounts were exempted from the TSA because they were not entirely Nigerian government-owned accounts.

Among them are the West African Examinations Council’s account and the Nigerian National Petroleum Corporation’s Joint Venture accounts.

Idris explained that the accounts had multiple owners and could not be captured by the TSA.

“WAEC, for instance, is an international examinations body. Nigeria and other countries are there. You cannot place funds belonging to multiple countries in a single account operated by only one of the members,” he stated.

The NNPC admitted that it operated accounts with various sums outside the TSA.

The accounts have N59.47bn; $1.19bn; £216.m; and €6,377 as deposits.

In a presentation to the committee, the corporation said these were JV accounts run by it and private JV partners.

It said the money was regularly withdrawn for JV operations after which the proceeds were shared at the ration of 60 to 40 between the government and the JV partners.

“The share of the government then goes straight into the Federation Account and not back to the JV account,” it stated.

The NNPC added that the government’s part of the JV account was usually appropriated by the National Assembly during the yearly budget approval.

The committee later directed the finance minister and the AGF to submit a report on the cost-benefit analysis of operating the TSA in order to reassure Nigerians that “we are making gains from the TSA and not losing in disguise.”

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.

Continue Reading
Comments

Banking Sector

A Failed Attempt to Trigger a Run on Banks

Published

on

Fidelity Bank
As market sentiment remains highly volatile and driven by news flow, banks liquidity levels can become vulnerable due to spread of inaccurate information.
As Nigerian banks put finishing touches to their recapitalisation plans as directed by the Central Bank of Nigeria (CBN), industry watchers have seen how social media mercenaries and their hirelings are deliberating distorting the truth and pushing campaigns that spread false information which could result in deposit outflows from their targeted banks.
Earlier this month when the Central Bank of Nigeria (CBN) revoked the banking licence of Heritage Bank, it gave reasons for the decision.
The reason was clearly stated! “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability,” CBN noted.
The CBN said Heritage Bank had continued to suffer and had no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.
A statement by Hakama Sidi Ali, acting Director, Corporate Communications of the CBN, said the apex bank acted in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act, BOFIA, 2020.
Many market watchers, particularly those following developments in the banking industry did not think the CBN should have done otherwise and subsequent appointment of the Nigeria Deposit Insurance Corporation, NDIC, as the liquidator.
Mischievous ‘list’ of other banks
Shortly after the apex bank hammer fell on Heritage Bank, social media mischief makers released their own ‘list’ of other banks they felt will go the Heritage way – not minding the illegality of assuming such a regulatory position.
Thanks to Central Bank of Nigeria (CBN) for quickly debunking the fake news which had mentioned the names of other banks – Fidelity Bank, Wema Bank, Polaris Bank and Unity Bank.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.
“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system. The Nigerian financial system remains safe, sound, and resilient. Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs).
“These plans are currently being reviewed by the Bank. In addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalise will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.
“The CBN would like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness,” said CBN’s Sidi Ali said in a June 4 statement in response to the false allegations of license withdrawals.

Continue Reading

Banking Sector

MIPAD Announces Onyeali-Ikpe Among Global Top 100 Trade Champions of African Descent Worldwide

Published

on

In acknowledgment of her outstanding impact on global trade, Dr. Nneka Onyeali-Ikpe, the Group Managing Director and Chief Executive Officer of Fidelity Bank Plc, has been recognized as one of the honorees in the 2024 Most Influential Global Top 100 Export and International Trade Edition.

Themed, “Championing the Vision of Global Africa as a Unified Economic Block and Single Market,” the initiative which was announced on May 25, 2024 in celebration of Global Africa Day, lists several leaders in the global trade space of African descent, including the President, African Export–Import Bank (Afreximbank), Prof. Benedict Okey Oramah,); Minister of Trade and Export Promotion, Algeria, H.E. Kamel Rezig; Chairman, World Trade Centre Accra, Ghana, H.R.H Togbe Afede; the Nigerian Minister of Industry, Trade and Investment, Dr. Doris Nkiruka Uzoka-Anite; Executive Director and CEO, Nigerian Export Promotion Council (Nigeria), Nonye Ayeni; Executive Vice President, Intra-African Trade Bank (IATB), Kanayo Awani; Director, Trade Development (Africa & Caribbean), World Trade Centre Miami, US, Kemi Arosanyin; Secretary of State for Business and Trade and President of the Board of Trade (United Kingdom/Nigeria), Kemi Badenoch; President, US-Africa Business Centre at US Chamber of Commerce, Kendra Gaither; and President of the Buenaventura Chamber of Commerce (Colombia), Milady Garces Arboleda.

According to a statement by Most Influential People of African Descent (MIPAD), the organisers of the initiative, “These honorees are recognized for their groundbreaking achievements in Trade & Export and are called upon to champion the vision of a unified Global Africa as an economic block. This recognition aligns with the ethos of the International Decade for People of African Descent, highlighting MIPAD’s ongoing commitment to celebrating individuals, organizations, and governments demonstrating outstanding leadership in advancing people of African descent globally.”

Commenting on the initiative, Dr Onyeali-Ikpe said, “This recognition demonstrates our market leadership in the international trade space at Fidelity Bank and our devotion to helping Nigerian businesses play a more active role in the global trade space.

Since 2022, we have hosted the largest private-sector driven trade expo tagged the Fidelity International Trade and Creative Connect (FITCC) with hundreds of export businesses from Nigeria, off-takers in the UK and USA, investors, regulators, media and other key stakeholder in the trade sector. Through FITCC, we have closed deals totaling $450million. Our commitment as a bank is to do more in this space and we thank MIPAD for the recognition.”

The Most Influential People of African Descent (MIPAD), is a global civil society initiative in support of the International Decade for People of African Descent, proclaimed by United Nation’s General Assembly resolution 68/237, to be observed from 2015 to 2024. MIPAD identifies high achievers of African descent in public and private sectors from all around the world as a progressive network of relevant actors to join together in the spirit of recognition, justice and development.

Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

Continue Reading

Banking Sector

Heritage Bank Liquidation: NDIC Opens Bidding for Assets and Branches

Published

on

heritage bank- Investors King

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of liquidating the bank’s assets across Nigeria.

This move comes as part of NDIC’s role as the liquidator of the failed bank, aimed at recouping funds and resolving outstanding liabilities.

The NDIC, through an advertorial published in major newspapers, has announced the sale of 48 properties belonging to Heritage Bank.

These properties include the bank’s head office located at 143 Ahmadu Bello Way and its annex at 130 Ahmadu Bello Way, Victoria Island, Lagos.

Also, the liquidation covers chattels such as vehicles, office equipment, plant, and machinery spread across 62 locations nationwide.

Interested parties are invited to participate in a public competitive bidding process. They have been given the opportunity to inspect the assets and submit bids to acquire them.

The bidding process requires potential buyers to submit bids accompanied by a Certified Bank Draft amounting to 10% of their bid.

Successful bidders will be required to settle the balance within two weeks of notification of their successful bid.

The liquidation process marks a significant step in NDIC’s efforts to manage the fallout from Heritage Bank’s closure effectively.

The corporation has also commenced the verification and payment of depositors with balances of N5 million or less, a category that constitutes about 99% of the bank’s customer base. According to Bello Hassan, the Managing Director of NDIC, Heritage Bank had approximately 2.3 million depositors with total deposits amounting to N650 billion, while its loan portfolio stood at about N700 billion.

The decision to revoke Heritage Bank’s license was made by the CBN due to the bank’s persistent breach of regulatory requirements and its inability to improve its financial position despite intervention measures.

This action underscores the CBN’s commitment to maintaining financial stability within the banking sector and protecting depositors’ funds.

Stakeholders within the banking industry, including the Bank Directors Association of Nigeria (BDAN) and the House of Representatives, have expressed support for the regulatory actions taken.

BDAN’s Chairman, Mustapha Chike-Obi, emphasized the necessity of such decisions in safeguarding the overall health of the banking sector.

Meanwhile, the House of Representatives has passed a resolution urging the CBN to investigate the management and leadership of Heritage Bank to ascertain if any mismanagement or wrongdoing contributed to its failure.

The resolution also called for a comprehensive review of NDIC’s operations to ensure it is adequately equipped to fulfill its mandate as a deposit insurer and investor in failed banks.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending