TSA fine: First Bank, UBA lobby CBN

In from Success Allantee . . .
First Bank of Nigeria (FBN) Limited and United Bank for Africa (UBA) have launched a powerful lobby to persuade the Central Bank of Nigeria to review a total a total fine of N4.78 billion imposed on the two banks for failure to comply with the Treasury Single Account (TSA) directive.
In separate statement to the Nigerian Stock Exchange (NSE), the managements of the two banks said they have started discussions with the CBN over the fines, confirming earlier reports that they were sanctioned for flouting the directive by the CBN that banks should remit all Federal Government’s ministries, departments and agencies’ funds in their custody to the apex bank in line with the TSA implementation.
First Bank stated that it was fined N1.877 billion by the apex bank for violating the directive on TSA and had since paid the fine. The bank has however started a discussion with the CBN on review of the fine.

Read also: TSA: CBN fines First Bank, UBA N4.8bn

Also, UBA confirmed that it had received a letter notifying it of a fine of N2.9 billion, being 5.0 per cent of N58.8 billion belonging to a parastatal (MDA) of the Federal Government of Nigeria, which it had failed to remit as at October 15, 2015. UBA did not indicate whether it has paid the fine, but the management of the bank said it was engaging the CBN on the fine.
Both banks reaffirmed their commitments to highest standards of ethics and corporate governance, assuring that they will provide any further update on the development to the investing public.
FBN Holdings’ share price dropped by 1.92 per cent to close at N5.10 while UBA’s share price also declined by 5.0 per cent to close at N3.42 yesterday at the NSE. FBN Holdings is the parent company of First Bank of Nigeria Limited.

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