TSA: No Exemption For Any MDA – CBN
Nse Anthony

— Sep 23, 2015 2:15 am | Leave a comment

Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, yesterday said that no federal government ministry, department or agency (MDA) had been exempted from the Treasury Single Account (TSA).

This was as the Monetary Policy Committee (MPC) voted to reduce the cash reserve ratio (CRR) from 31 per cent to 25 per cent, while retaining the minimum rediscount rate (MRR) and liquidity ratio at 13 per cent and 30 per cent respectively.

Emefiele, speaking after the MPC meeting in Abuja, also warned those spreading news about certain MDAs being exempted from the TSA to desist from creating confusion in the system.

He said, “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.”
There were reports in the media that 13 agencies, including the Nigeria National Petroleum Corporation (NNPC), Bank of Industry (BOI) 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 however denied the report, saying he had not received such memo.

Speaking on the MPC decisions, Emefiele said the MPC decided by a vote of seven to reduce the CRR from 31 per cent to 25 per cent, while three voted to hold.
“By a unanimous vote, the MPC voted to retain the MPR at 13 per cent. Also, the committee voted to retain the symmetric corridor of 200 basis points around the MPR and retain the liquidity ratio at 30 per cent,” he said.

Emefiele said the committee came to the decision following the declining output growth, rising unemployment and the evolving international economic environment.
He said that at the moment, the overall economic environment in Nigeria was fragile due to slow economic activities since the second quarter of the year.

He said that the non-payment of salaries at the states and local government levels was having a negative impact on consumer demand, which in turn was affecting the economy “The committee noted that the entire economic condition remains fragile. The economy further slowed in the second quarter of the year, making it the second consecutive less than expected performance “Having seen two consecutive quarters of slow growth, the committee recognised that the economy could slip into recession in 2016 if proactive steps were not taken to revive growth in key sectors of the economy,” he said.

Emefiele said that the committee was satisfied with the naira at the inter-bank segment, which has been relatively stable in the last two months, selling at N196.9 to N197 to a dollar.

He however expressed concern over the volatility of the naira at Bureaux de Change, which was selling between N224.5 to N211.5 to a dollar.

He said that due to various administrative and policy measures, the nation’s gross official reserves decreased from $31.2billion to $30.6billion as at September 17.
Emefiele said that the committee was optimistic that the pace of economic activity would improve once President Buhari brings out the economic policy of his administration.

The CBN governor emphasised 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 had 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 has 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,” he said. 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.

http://www.leadership.ng/news/462534/tsa-no-exemption-for-any-mda-cbn

Ok

confusion everyday , policy somersault, denials and lack of clear economic blue print is becoming d bane of Buhari/apc govt. This is why a Minister of Finance is aptly needed at this point; even d cbn gov is warning of imminent economic recession. Things ll get messier with Fitch rating likely out in coming days whereas GEJ team mbrs are getting intn'l accolades, recognitions and appointments.

I will stop reading news that has Federal government in it.