TSA: CBN gets N2tn from banks

In fulfillment of federal governments directive that all Ministries, Departments and Agencies (MDAs) should close their various account with commercial banks and deposit the funds in aTreasury Single Account (TSA) with the Central Bank of Nigeria (CBN) about N2 trillion has so far been deposited with the apex bank by the Deposit Money Banks (DMBs).
This amount is part of the N3.5 trillion public sector funds in the banks’ vaults.
It was gathered that though the banks had been fully cooperative of the TSA policy of the Federal Government, which is meant to improve transparency and accountability in the management of revenue, a number of MDAs were yet to fully comply with the TSA deadline which ended on Tuesday.
It was also gathered that some banks which did not have the needed liquidity to move the funds immediately had to sell-off their liquid instruments like Treasury Bills and Federal Government bonds to get the needed cash in the transaction.
It is still unclear what measures the CBN would take to cushion the negative impact the movement of the funds will have on banks’ balance sheets and amount of cash available for lending.
Ministries, Department and Agencies (MDAs) of the Federal Government that failed to meet Tuesday’s deadline to migrate to the Treasury Single Account (TSAs) will be sanctioned, the office of the Accountant General of the Federation (AGF), said yesterday.

Read also: Heads to roll as Buhari issues deadline for TSA

A statement signed by Mrs Kene Offie said “almost all MDAs, especially the revenue yielding ones have all complied with the Presidential directive to transit to the Treasury Single Account (TSA). Sanctions will be meted to any erring MDA.”
The AGF office did not identify those MDAs that were yet to make the transition but not less than 90 per cent, about 700 MDAs had migrated.
The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim said that the full implementation of the TSA was a signal that the era of arm-chair banking in Nigeria was over, adding that the TSA policy had presented banks with an opportunity to diversify their sources of deposit mobilisation.
On the rumour of mass retrenchment in the banking system due to the TSA policy, the NDIC boss said the rumour was unfounded. He emphasised that organisational renewal was a continuous exercise whereby banks not only rationalise their branches and entire operations to enhance efficiency but also undertake recruitment to renew their human capital.

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