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FG exempts NNPC, PHCN from Single Account policy

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Though the federal government had emphasised that its directive on the Treasury Single Account (TSA) arrangement would streamline government’s earnings, and reduce corruption, it has however admitted that some parastatals can be exempted from the directive.
A circular to the Central Bank of Nigeria (CBN) from the Office of the Accountant-General of the Federation (OAGF) named 13 agencies that are excused from the current TSA arrangement that had mopped up government funds from commercial banks.
In the circular, the exempted agencies were described as “profit oriented government business entities that pay dividends to the Federal Government of Nigeria.”
The circular addressed to the Director, Banking and Payments System Department of the CBN, with FD/LP2015/C/ADC/20/1/ /DF as reference number was dated September 14, 2015 and signed by M K Dikwa, for the Accountant-General of the Federation, Federal Ministry of Finance, Funds Department, Abuja, FCT.
The exempted agencies are: Nigeria National Petroleum Corporation (NNPC), Power Holding Company of Nigeria (PHCN), Bank of Industry (BoI), Nigeria Railway Corporation, Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta Power Holding Company/National Integrated Power Project, National Communication Satellite Limited, Galaxy Backbone Ltd and Ajaokuta Steel Company Ltd.
Others are Urban Development Bank, Nigerian Export – Import Bank and Transcorp Hilton Hotel.
The circular titled: Approval to Exempt Some MDAs in Line with the e-Collection Mop Up Exercise, read: “Approval is hereby granted to your bank (CBN) to exempt the Accounts of 13 MDAs (category six) as listed below the mop-up in line with the e-Collection Circular No. HCFSF/428/S.1/120 dated 7th August 2015 as these are profit-oriented government business entities that are to pay their dividends into the Treasury Single Accounts whenever they are declared.”

Read also: TSA: CBN gets N2tn from banks

The circular urged the CBN to “note that in line with the Presidential approval, the following as it relates to NNPC as listed above (S/No.9) under Category 4 should also apply:
“That National Petroleum Investment Management Services (NAPIMS) remains classified as an MDA that is funded from the Federation Account under Category 4 of the Circular, being the NNPC business unit responsible for the management of the Federal Government’s investment in upstream activities and funded from direct proceeds of oil and gas revenue.
“That NNPC will continue to preserve the status with respect to NAPIMS Operations Account as well as Escrow Account for Third Party Financing in view of the Joint Venture (JV) cash funding currently being experienced; and that all other NNPC’s commercial/businessentities as re-classified as ‘Profit Oriented Public Corporations/Business Enterprises’ under Category 6 of the Circular which requires that only dividends from these entities be paid into the TSA.”
When contacted Mr Ohi Alegbe spokesman for the NNPC said the NNPC will continue, as it has always done, to remit its accruals into the Federation Account but that the JV cash-call obligations with its partners will use commercial banks and not the CBN.
Chinedu Moghalu of NEXIM confirmed that NEXIM has been exempted from the TSA scheme while Shola Adeyemo of Transcorp Hilton Hotel said the firm is “aware of such a directive.”

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