No MDA exempted from TSA, says Emefiele

Posted by News Express | 23 September 2015 | 3,314 times

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The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, on Tuesday in Abuja said that no Federal Government Ministry, Department or Agency (MDA) had been exempted from the Treasury Single Account.

Emefiele said this on the sideline of the Monetary Policy Committee meeting.

“I haven't seen any memo that exempts any MDA from the TSA. So as a result, I will advise all those who think they have been exempted to please avoid creating confusion.

“I will appeal to those who are affected by the TSA to please continue to comply with the movement of accounts from other banks to the CBN.”

The News Agency of Nigeria (NAN) recalls that there are reports that 13 agencies, including the Nigeria National Petroleum Corporation, Bank of Industry and Niger-Delta Power Holding Corporation, had been exempted from the TSA policy.

The report quoted a memo sent from the office of the Accountant-General of the Federation, directing the CBN to exempt the agencies listed from making remittances to the TSA for now.

Emefiele said that Nigerian banks were still safe, in spite of the movement of money due to the TSA policy.

He said that the amount that left the banks due to the policy was less than what has been speculated in the media by financial experts.

“The data that the committee (Monetary Policy Committee) reviewed between yesterday and today showed that liquidity ratio in the banks have decreased moderately.

“That is why the committee came up with the conclusion that the impact of the movement of funds from the CBN on liquidity is sort of moderate.

“The liquidity ratio showed that Nigerian banks are safe.”

Emefiele said that the CBN would continue to monitor the liquidity of the banks to make sure that they did not slide into difficult terrain.

NAN reports that the Treasury Single Account is a unified structure of government bank accounts that allows consolidation and best use of government cash resources. (NAN)

•Photo shows CBN Gov. Emefiele

Source: News Express

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