- TSA: FG Begins Audit of Banks’ Remittances to CBN
The Federal Government has commenced an independent audit of remittances of its funds into the Treasury Single Account by Deposit Money Banks.
The TSA is a platform used by the government to unify all its accounts by ensuring that all funds belonging to the Federal Government are kept with the Central Bank of Nigeria.
The initiative, which began fully in September 2015, has been complied with by over 900 agencies of the government with 20,000 bank accounts closed while over N5tn has been moved from banks to the CBN.
There was a discovery last week that about seven banks had yet to remit a total of $793m government funds into the TSA.
But speaking in Abuja at a two-day workshop for finance journalists on the TSA and other public financial management reforms, the Director, Funds, Office of the Accountant General of the Federation, Mr. Alexander Adeyemi, said a comprehensive audit of the remittances by banks was being carried out by the office.
He said the audit, which was being conducted by renowned accounting firms such as Pricewaterhouse Coopers and Ernst and Young, would focus on how much of the government’s funds was in banks before the Presidential directive was given; how much was actually moved; and what was still being held by banks.
He said, “The AGF (Accountant General of the Federation) has given the approval for the audit of the entire TSA, and we have reputable accounting firms like Pricewaterhouse Cooper, Ernst and Young that are now doing the audit of the entire TSA so that any money that is still remaining in commercial banks would be discovered.
“They are doing three-leg reconciliation. We are starting out with the balance of the MDAs (Ministries, Departments and Agencies) before the Presidential directive. Then, we are proceeding to the CBN in terms of how much was moved. Was it the total money in banks? We are also auditing the balance in these various accounts.
“So, it’s a real comprehensive thing. I must say that some of the lapses that we are seeing, especially among the banks not adhering to the Presidential directive, the truth will surely come out. There is no easy way for them because some few weeks ago, more money was discovered from some of those commercial banks and they are taking steps to ensure the money is brought back into the TSA.”
Adeyemi also said that the government was putting in place a mechanism to monitor and ensure that the funds were paid back into the government coffers.
He said the entire funds in the TSA could not be used to fund all the programmes of government as they belonged to the agencies of government, some of which were for projects of previous years.
He, however, said there were some idle funds of about N300bn in the TSA, which had been invested in the Federal Government treasury bills.
He also spoke on the delay in the payment of the consultancy fees of SystemSpec, the firm whose software was used to move the funds, stressing that a Presidential approval had been given for the release of the funds.
He, however, said what was approved might not be up to N12bn being demanded by SystemSpec due to the huge transaction involved in the movement of the TSA funds.
He said, “The President has approved the amount to be paid to Remita (SystemSpec) for its services and we have been working in line with that Presidential directive. The only problem is that Remita is looking at the agreement with the government before the directive.
“But we are saying that looking at the quantum of transaction of the TSA, if you calculate it based on that, the money that will be paid will be running into over N12bn.
“Initially, when it started, nobody knew it would be like this and we looked at it again, and the government said let us look at it again, and that is why the government has put a committee to work round the clock on this and I believe between now and next week, all that will be cleared.”
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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