- TSA as Transparency Enabler, Not Anti-growth
Difficult times have been well assessed by experts as a period of more want, with less satisfaction. It is also a period of rather than more alternative solutions, but blames, as well as regrets. The Treasury Single Account (TSA), which is gradually assuming a household recognition in the country, is not totally a unique phenomenon, it is global issue, with varied nomenclature.
The second is that the money gathered by TSA was returned to the owner- government, which hitherto was borrowed “ignorantly” for a fee. Besides, while the tenor or period of the “free ride” lasted in the hands of those holding the money, they never reported how much they earned without paying the owner any fee to owner.
Of course, the inflation rate hit an 11 year high at 17.9 per cent in September 2016, and expected to breach the 18 per cent mark by October data. It is worth noting that had the pool of fund sterilised by TSA been in the banking system, it would have fueled more inflation than at present.
While the assessed “idle” funds created by TSA are not encouraged in a system that needs free flow of funds, the decision to still keep them idle is a policy matter and power of negotiation by those who really need them. The TSA has done its work of gathering the “scattered” public fund together, it is left for policy makers and businesses to re-engage the pool.
We call it TSA and in other jurisdictions, they call it something else, but the objective and process are one- making the financial position of government transparent and effective. Almost, if not all the governments of the world, operate it.
Complaints against economic policies, with the TSA receiving some major knocks, have made informed commentary a necessity, especially as the reforms to restructure and institute openness in governance gather momentum.
The Vice President, Prof. Yemi Osinbajo, in August 2016, said that 40,000 ghost workers had been discovered with the help of the TSA scheme, thus promoting transparency in governance. This figure, when multiplied by the current Minimum Wage of N18,000 amounts to N720 million monthly and N8.64 billion yearly.
The Accountant General of the Federation, Ahmed Idris, in March this year’ said that the programme has assisted the government in recovering funds exceeding ₦3.3 trillion in less than a year of enforcement. While this amount may not be physical clawback of Naira, it signals amount that would have been lost to the “old ways” of doing things.
Prior to the enforcement of the TSA scheme, Ministries Departments and Agencies (MDA’s) of the republic ran over 17,000 lax bank accounts. With the implementation, over 900 MDA’s operate the TSA, hence cutting costs of governance.
Some state governments such as Lagos and Kaduna have bought into the programme in a bid to promote accountability in governance. They realised that the long term gains of the policy is enormous.
The multiplicity of bank accounts operated by MDA’s enabled banks to run an eccentric financial system whereby funds from the loose government accounts were loaned back to the government at a high interest rate. These excesses have been cut with the implementation of the TSA thereby exposing their shortcomings in performing their financial intermediaries. They have now diversified.
Unfortunately, some organisations, as well as industry leaders have joined in blaming the TSA scheme for the economic downturn, which could falsely lead one into believing that the TSA is a nefarious plot to impair the populace’s standard of living. If government has the penchant of delaying the release of project funds, it is not because TSA is in operation, because it takes a signature or order where applicable for the fund to be released”
TSA might be seen in bad light in the country however, globally, it is a standard for public accountability.
Here are some of the things everyone needs to know about TSA or be reminded of:
TSA is a financial policy established by the Federal Government to consolidate all revenues and payments from its various Ministries Departments and Agencies (MDA’s) into a single account or a group of linked accounts domiciled in the Central Bank of Nigeria (CBN).
TSA was initiated by the previous administrations, but executed by the current government. Even President Muhammadu Buhari has attested to the fact that it is a laudable idea during his session with the Nigerians living in the United Kingdom in February.
Sections 80 and 162 of the 1999 Constitution of the Federal Republic of Nigeria states that there should be a Consolidated Revenue Fund for all revenue and other moneys raised and received by the Federation. TSA, according experts, is in compliance with this section of the constitution. This, so far, has put all conversations centering on its legality to silence.
Banks’ Credit to Economy Hits N19.33 Trillion in August
Deposit Money Banks Credit to Economy Rose to N19.33 Trillion in August
The total credit facility to the economy rose to N19.33 trillion in the month of August.
The Central Bank of Nigeria-led monetary committee disclosed on Tuesday after the nation’s monetary policy committee meeting.
The committee attributed the improvement to the 65 percent loan-to-deposit ratio policy implemented to compel the nation’s deposit money banks to join central bank efforts at growing the real sector of the economy.
Godwin Emefiele, the Governor of the Central Bank of Nigeria, who spoke during the meeting said “The bank’s policy on Loan to Deposit ratio also resulted in a significant growth in credit to various sectors from N15.57tn to N19.33tn between end-May 2019 and end-August 2020, an increase of N3.77tn.
“This growth in credit was mainly to manufacturing (N866.27bn), consumer credit (N527.65bn), oil and gas (N477.65bn), agriculture (N287.11bn) and construction (N270.97bn).”
On monetary aggregates, broad money supply (M3) rose to 6.93 per cent (year-to-date) in August 2020 from 5.23 per cent in July 2020, reflecting the increase in both Net Foreign Assets and Net Domestic Assets.
He said total domestic credit grew by 6.94 percent in August 2020, lower than the 9.43 percent recorded in July 2020.
The committee reduced the nation’s benchmark interest rate by 100 basis points to 11.5 percent, down from the previous 12.5 percent.
Emerging Cities Take on Established Hubs for Graduates Seeking a Career in Finance
Graduates Seeking a Career in Finance Prefer Dubai to Start Their Career
Dubai is the number one global destination for graduates who successfully complete the flagship graduate programme at one of the world’s largest independent financial advisory organisations.
On passing the intensive scheme, deVere Group routinely asks graduates in which location within the Group’s global network of offices they would like to start their international financial services career. This year, 36% have responded with Dubai.
The second most popular is London (25%); Hong Kong is third (14 %); Mexico City is fourth (13%) and Moscow is fifth (6%).
The remaining 6% is made up of other destinations including Shanghai, Geneva, Paris, and Abu Dhabi.
deVere Group CEO and founder Nigel Green comments: “This survey highlights that the next generation of financial services professionals are open to look beyond the traditional and more established global financial hubs.
“The order of the top destinations changes with each group of grads we take on, but Dubai, London, and Hong Kong are typically in the top five somewhere.
“This is because, quite understandably, these global hubs of finance, commerce and technology represent centres of enormous possibilities for ambitious individuals about to embark on careers as international wealth-advisory and fintech professionals.
“There are some common traits amongst these cities, including that English is commonly spoken, they are politically and economically stable, there is a high level of internationally-minded high net worth individuals, and by relocating to these places one can usually expect comparatively high financial rewards.”
He continues: “What is different this year is that for the first time emerging financial hub cities are making the top five. Mexico City and Moscow are now actively competing for top talent with well-established international financial centres like Shanghai, Geneva and Tokyo.
“All these global destinations are unique and differ from each other in terms of the lifestyle they offer and in terms of clients’ expectations, economic environments and regulatory conditions.
“With each of the top five cities offering unique opportunities and challenges, each one attracts grads who have often quite markedly different strengths and weaknesses, skill sets and aspirations,” notes Mr Green.
“The results of this survey suggest that despite the pandemic, talented young people seeking a rewarding career are keen to look for opportunities internationally.”
The deVere CEO concludes: “With a globally-focused outlook from the wealth advisers and fintech professionals of the future, we can expect this trend of emerging hub cities to take on stalwart destinations to continue for the foreseeable future.”
Adesina, Godwin Emefiele, Others to Deliver Keynote Address at ASA 2020
Adesina and Godwin Emefiele to Deliver Keynote Speech at Agriculture Summit Africa (ASA) 2020
The President of the African Development Bank (AfDB), President Dr. Akinwunmi Adesina, is expected to deliver the keynote address at the 2020 Agriculture Summit Africa (ASA) holding this week.
The yearly summit organised by Sterling Bank is titled ‘Fast forward agriculture: Exploiting the Next Revolution’ this year.
According to the organisers, participants were expected to log in online while a few others would be in Lagos and Abuja studios.
In a statement released on Tuesday, Yemi Odubiyi, the Executive Director of Corporate and Investment Banking, Sterling Bank said other dignitaries were expected to deliver goodwill messages at the summit.
Some of the names mentioned were the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele; Minister of Agriculture and Rural Development, Alhaji Muhammad Sabo Nanono; Cross River State Governor, Prof. Ben Ayade; his Kebbi counterpart, Senator Atiku Bagudu; and the Oniru of Iru Kingdom, Oba Abdulwasiu Omogbolahan Lawal.
Director, Advocacy and Country Alignment Function (ACAF), Director-General’s Office, International Institute of Tropical Agriculture (IITA), Dr. Kwasi Attah-Krah, is expected to deliver another keynote address on the second day.
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