at list government will be able to control MDS account.

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To me is a good policy, all government funds should be with CBN.

Either way the funds will at the end be in commercial banks trough salary payment and payment to contractors, which means if your services are good you get more salary accounts and contractors to get funds, but as it is. The bank that gets the govt funds is the one that gives the highest bribe.

Bribery in banking is seriously under reported

hazyfm1:

Yes most do. The likes of Zenith, FBN, etc King of MDAs Accounts

LOL

hazyfm1:

Yes most do. The likes of Zenith, FBN, etc King of MDAs Accounts

As a matter of fact, all the banks have one MDA account or the other.....

Wen men say there is a casting down I will say there is a lifting up

so this means now that the nigerian government has now nationalised all banks, but fools will still say gej till 201xxxxxxx. he is trying all tricks to hide his tracks

Bank marketers monthly target go reach 50 million naira with this development,to be a marketer no be small thing o...

Dear bank accounts owners do not worry... all is well

AmakaDNB:
Everything getting harder and harder

What do you understand from the post?

Is this the reason behind salary delay since last dec..?

Caracta:
Meaning?



It's even better. Let's know the true position of our banks without MDAs

Easier said than done sister.
Banks are heavily dependent on govt based revenue.
I consult for a couple of banks and I know a project with an MDA as client is never the same as one with the private sector.

In fact right now I am contemplating pulling out of all non-MDA projects am involved with cos profitability wise, they are a world apart.

ElFenomeno1:


What do you understand from the post?

My dear, I get small brain. Teach me na

Adesiji77:

It is the right step... We dont have Banks in Nigeria... What we have are warehouses for depositors funds...

The banks will now focus on the customers more, cos the money from the MDAs will still enter their accounts as staff or contractor...

staunch move if u ask me.


We need to channel our money to the right institution,and definitely not commercial banks.

diluminati:
so this means now that the nigerian government has now nationalised all banks, but fools will still say gej till 201xxxxxxx. he is trying all tricks to hide his tracks

Ain't you a Fountain of Knowledge?

RELATED STORY...

Banks push limit as FG begins single account regime

Nigerian banks are beginning to look for new sources of deposits and means of boosting profits, as the Treasury Single Account (TSA) implementation looms.

With the new TSA platform expected to take effect next week Monday, all receipts by MDAs will now be made directly to the Consolidated Revenue Fund at the CBN, through an electronic channel process known as e-Collection. The TSA translates to a significant decline in banks’ deposit ,as these are monies that are being kept with the banks.

Consequently, banks burdened with regulatory headwinds that are impacting negatively on their income are considering hike in rates of existing facilities.

The recent hike in monetary policy measures typified by increasing Cash Reserve Ratio, (CRR) on private sector deposit from 15 percent to 20 percent, Monetary Policy Rate (MPR), anchore rate at which the CBN lends money to banks from 12 to 13 percent and devaluation of the currency, among others, made banks to embark on upward review of facilities from 23 to 26 percent.

The implication, according to some analysts, is that current moves may further impoverish consumers whose purchasing power has been eroded by delayed payment of monthly salaries and in some cases half salaries to staff of local government staff in some states of the federation.

Consequently, lenders will be affected by the TSA directive, as this effectively raises to 100 percent, the proportion of public sector funds sterilised with the CBN.

“All banks are reviewing interest rates up on existing loans,” one bank official at a mid- tier lender told BusinessDay.

“The banks recently had a meeting with the CBN and decided on that action,” he said.

A letter to a customer from one of the banks seen by BusinessDay, shows average interest on loans up by 3 percent or 300 basis points.

“The increase is aligned to current money market realities,” the bank said.

The office of the Accountant-General of the Federation said in January, that all Federal Ministries Departments and Agencies (MDAs) yet to embrace the TSA, have till Friday February 28 to close operated revenue accounts with commercial banks and transfer to accounts managed by the CBN.

Some banks are increasing deposit rates to attract idle funds and adopting aggressive tactics to lure customers to open accounts in a country where 67 percent of the adult population is unbanked.

“There is pressure generally, our targets have been raised to N1 billion a week,” one marketer in a second-generation bank told BusinessDay on grounds of anonymity.

Africa’s largest economy faces a real battle of getting revenue collecting agencies to remit accurately and timely, what is generated on its behalf into the federation account, thereby compounding a problem of revenue shortfall already battered by declining oil prices.

However, the banks already have very low exposure to public sector deposit, as cash reserve requirements (CRR) on public sector deposits stand at 75 percent,” Kayode Omosebi, an analyst at United Capital Plc, said.

The CBN raised public sector CRR-the minimum cash, as a percentage of customer deposits that each bank must set aside as a reserve – to 75 percent from 50 percent in January 2014.

A year before that, the apex bank had identified implementing the TSA as a fiscal strategy that would support its inflation-targeting policies at the time.

BusinessDay estimates that N2.6 trillion of public sector funds are now being sterilised with the CBN, which reduces the lending creation power of commercial banks which are left with a shallower deposit base to contend for.

“The CBNs CRR policy has effectively kept N460 billion of First Bank’s funds at the apex bank, earning zero interest rates, instead of being available for lending,” said Stephen Onasanya, Chief Executive Officer, First Bank of Nigeria, at a Conference in Lagos last year.

The TSA directive is also in keeping with the promise on December 17, 2014 by Ngozi Okonjo Iweala, the Coordinating Minister for the Economy and Minister of Finance, that government would block all leakage as part of measures to shore up the revenue shortfall caused by declining oil prices.

It could also help reduce the need for government to borrow, by issuing bonds which are mostly subscribed by banks, when the government’s idle funds already exist in same banks.

Returns in Nigeria, Africa’s largest economy, are driven by net interest margins, which will be further crimped by the TSA directive.

The Nigerian Stock Exchange Banking Index, which tracks the nation’s biggest banks, has lost -11.76 percent this year (February 20) compared with a 14 percent increase for South Africa’s seven – member FTSE/JSE Africa Banks Index.

Since the 2008 home grown financial crisis, Nigerian banks have had to deal with higher capital requirements for a given amount of assets and tighter monetary policy.

The regulator also told lenders to lower fees and commissions to reduce costs to customers.

Omosebi says the general expectation late last year was a further increase in public sector CRR, and the banks are factoring that as well as the TSA.

“I think the impact of the kick-off of the TSA reform will be mildly felt by the banks, as the banks have little chunk of this money to play with as we speak,” Omosebi said.

http://businessdayonline.com/2015/02/banks-push-limit-as-fg-begins-single-account-regime/#.VO20rvnF-xU

Great move. Now that attitude of fraudulently fixing workers salaries in time deposits by top management in ministries will stop. No more owing of salaries again. Cos I dnt think part of the functions of CBN is to create fixed/time deposits

AmakaDNB:

My dear, I get small brain. Teach me na

I figured by the quality of the response, that you have pretty much nothing up there.
No point teaching you. It will be a wasted effort.
Goodluck in life

ElFenomeno1:

I figured by the quality of the response, that you have pretty much nothing up there.
No point teaching you. It will be a wasted effort.
Goodluck in life

Thank you for the analysis jare. At least I was able to get you busy today.

Saucekide25:
GET AMAZING DISCOUNTS AND SWIFT DELIVERY WHEN YOU ORDER ITEMS ON JUMIA.COM [Pay on Delivery]...TO PLACE YOUR ORDERS CALL or WHATSAPP (08122204769)or E-MAIL me via (EONUEGBU1@GMAIL.COM).

Why waste your time? If that guy knows what jumia is, he'll know how to buy stuff himself...


Later you will say it's GEJ's fault...

AmakaDNB:

Thank you for the analysis jare. At least I was able to get you busy today.

diluminati:
so this means now that the nigerian government has now nationalised all banks, but fools will still say gej till 201xxxxxxx. he is trying all tricks to hide his tracks

erm..., you are not in any way remotely bright, are you?

Wats d disadvantage of dis rubbish ip here...I cant read nw...too long...my concern is my money in d bank...make I go witdraw all ni

crazygod:
Great move. Now that attitude of fraudulently fixing workers salaries in time deposits by top management in ministries will stop. No more owing of salaries again. Cos I dnt think part of the functions of CBN is to create fixed/time deposits

Please may you explain the above sentence further. I figured out you were trying to say something wise, but I seem not to understand what you mean.

Some bank workers would lose their jobs. And there would be more and more vacancies for bank marketers. Dammm

Walai...
Am porting from A
P
C.. To
P
D
P.. With immediate effect and sound health..
Make I buga for my account officer now small

bank staff get ready for sack and the lucky ones for work overload. This is usually the first reaction buy banks to reduce overhead cost that will eat away their dwindling profits. I pitty bank workers. Less I forget NO MORE PR to those ministries, agencies etc workers in charge of these fund. THIS NA BAD MARKET FOR THEM

styv:

erm..., you are not in any way remotely bright, are you?

i dont deal with fools of shallow reasoning. please jerk off

DONFASZY:
Wats d disadvantage of dis rubbish ip here...I cant read nw...too long...my concern is my money in d bank...make I go witdraw all ni

YES!! And pay d money into my account. Contact me wen u r ready. I just want to help u o

ceejayluv:
Systematic corruption fight... GEJ till 2019....

they don't know! a silent achiever, articulate,tackling problems from the root! I duff my hat for this man (GEJ) jare. Grah grah no be sense!!!