Ahead of tomorrow’s deadline for Ministries, Departments and Agencies (MDAs) to close all Federal Government accounts with commercial banks, bankers controlling the affected public sector unit are at risk of losing their jobs.

This is according to an Ecobank Bank Manager who spoke to the Nigerian Times on a condition of anonymity.

President Muhammadu Buhari had set a deadline ofTuesday, September 15 for full compliance with his directive that all revenue due to the Federal Government or any of its agencies must be paid into the Treasury Single Account (TSA) or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved.

The Accountant- General of the Federation, Alhaji Ahmed Idris also stressed on Sunday that there was no going back on the deadline to Ministries, Departments and Agencies (MDAs) to close all Federal Government accounts with commercial banks.

The Bank Manager explained that the order to close down these accounts with commercial banks would affect bankers in this unit.He explained that though public sector funds are usually at zero deposit charges, they stay for years, as a result, bank use it for business and the turnover is highly beneficial to the banks.

Speaking further on the bankers in this sector, he explained that some of them will be laid off as only few hands will be needed in that department due to the new policy.

“Those banks that would normally receive these funds, it’s a lost to them. They are losing deposit. The multiplier effect is that ideally, it means that there is no more business for people doing public sector in the banking unit. They stand the chance of losing their job,” he said.

He however explained that this does not entirely spell doom for commercial banks as only revenue yielding parastatals are expected to adhere to the rules.

Basically, annual budgets would still be deposited in commercial banks.

“This does not mean that banking business for commercial banks will be closed; it is just revenue parastatals and ministries. Budgets and all other contingencies will also go to commercial banks. Banks will still be getting public sector funds but funds that benefit banks in the long run would be hampered,” he noted.

Analysts believe that the nation’s banks would be losing about N2 trillion deposits to the Central Bank of Nigeria, CBN, with the implementation of the Treasury Single Account, TSA, as ordered by President Buhari.

States are also gearing up to adopt the policy.

This is also in line with the Presidency’s directives to the National Economic Council, NEC, to ensure full compliance of MDAs to relevant laws on accounting, allocation and disbursement of public funds.

Bankers had pressurized the former government of Goodluck Jonathan, which had initiated the policy in December 2014, to soft pedal on the implementation, which was originally scheduled for February 2015, on the reasons of a likely negative impact on the economy.


Source: http://nigeriantimes.ng/news/tsa-deadline-thousands-of-bankers-may-lose-their-job/

Eeyah....desperate times call for desperate measures. The TSA will surely reduce corruption, its just the price we have to pay. No more siphoning public funds, those days are over!!

There is panic in d land...

But this shouldn't be.

Things are going to get difficult before they get better. The process of correcting d economy is a painstaking one.

zomoears:
There is panic in d land...

But this shouldn't be.

Things are going to get difficult before they get better. The process of correcting d economy is a painstaking one.

Listen to yourself ..

I welcome this idea, I've been looking for a layman interpretation of this TSA issue, I think it will go a long way in curbing embezzlement.

If fighting corruption will nake the bankers loose thousand of jobs. My question is whether they were employed for corruption or vai corruption in the first place!!!

dunkem21:



Listen to yourself ..

Get off ur high horse, pal. If u hv something to say, let's engage positively.

Long live TSA

zomoears:


Get off ur high horse, pal. If u hv something to say, let's engage positively.

Nothing to say, really ..The article is self explanatory ..

I have predicted loss of jobs just two days back ..Check it ..