gabe:

oil supplies over 70% of govt revenue. U probably mean overall contribution to GDP

Khd95:
Senator representing twitter constituency alias mr common sense.


U seems to be very active online,no traces of u when it comes to nation issues,i mean how come u havent iniated or sponsor a bill to at least drive home ur common sense points

Amya:


No, oil supplies 70% of Nigeria's foreign exchange not government revenue. There are numerous other sources of government revenue but it's all in small bits and percentages. Oil as a single source at 13% is still quite a lot.

Amya:


Where is there to look? trillions that would revive the economy is held under lock and key. Money is liquid and should be allowed to flow freely for the economy to be strong.

989900:
Rubbish excuse from the loan defaulter, the TSA exposed you guys' fraud. The banks are the cesspit of corruption in this country. How many loans were given to SMEs with the non implementation? What happened to the reduced CRR, that already over compensated for the gov't/free money withdrawal.

The TSA is stipulated by the 1999 constitution, have a problem with it, seek for amendment, senator.

majekdom2:
it is not money will revive the economy. Recession is not just about money. Investments will, FDIs. These investment will have suport of foriegn banks and institutions Nigeria Banks should focus more on SMES and not government capital projects as usual.

gabe:

check your sources. Its 13% to the overall economy, but over 70% to govt purse. Will govt be struggling to pay salaries and fund budget if its 13% of their income?

blueto:
the implementation of the TSA was being done in phases or gradually by the previous govt.

the reason was that the previous govt understood the fact that the Nigerian banking industry & by extension the economy was primarily driven by government spending & while there were concrete plans to make it more private sector driven, it knew that pulling out government funds from the banks in one fell swoop would negatively impact the economy, might lead to a recession, create instability in most banks, restrict the ability of banks to loan money to investors, threaten existing loans and other negative consequences.

hence the gradual implementation, with banks adjusting gradually to the changing times.

But unfortunately for the Nigerian economy, the certificateless cattle rearer who was devoid of economic knowledge and proficiency was voted in and without even considering the repercussions of the swift implementation of TSA, quickly implemented it in full scale and blamed Jonathan for failing to implement it in full scale, of which ultimately submerged the economy into recession.

No wonder Obasanjo had to admit that Buhari is not economically sound despite their current fraternization.

badttrader:
I'm afraid he is right.

The effect it has on the nigerian economy is one disadvantage of the TSA.

But lets look at the big picture for a minute. Banks can't keep surviving on government funds(which is also mostly tied to oil proceeds). This is the first step to take in moving away from an oil-driven economy.

Let us all seek a Nigeria that will still have a strong and vibrant economy when oil eventually fails us completely. We have the population to do that. We can still be like China.

God bless us all!

Amya:


Money is investment and investment is money. SMEs can't thrive without loans and capital and without funds, how can the banks support these small institutions. No foreign will risk investing in a shaky economy. For them even, it's all about visible growth and profit and if they can't see that, they wouldn't come in. Recession is all about money.

plaetton:


No doubts, banks are the cesspool of corruption.
There is no corruption case that doesn't involve a bank or two.
The entire system is corrupt.

So,was the TSA hurriedly implemented to punish the banks?

This goes to the crux of my argument.

Let me repeat, do you apply a jackhammer to the pesky fly perched on your Scrotum ?

If you do, you lose your family jewels

We must learn how to achieve strategic objectives without punishing everyone or without bringing the entire house down.

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) unanimously left the MPR unchanged at 13 percent +/- 200 basis points around the symmetric corridor with a 7 to 3 vote, reduced Cash Reserve Requirement (CRR) from 31 percent to 25 percent to reflate banking sector liquidity.

Analyst see this move by CBN to restore liquidity in the banking sector and neutralise the effects of the Treasury Single Account (TSA), implemented 15 September, as directed by the Federal Government.

“We think the CBN has simply restored system liquidity levels to where they were pre TSA debits, by releasing to the banks the Naira equivalent of what moved to the TSA,” Renaissance Capital said in its recent note.

The cost includes the N1.725 trillion spent by the Asset Management Corporation, (AMCON) to acquire the non-performing loans of banks in the wake of the global financial crises.

Before then, the apex bank had injected N620 billion to rescue 10 banks at the heat of the financial crises in 2009. Another N679 billion was expended by the Asset Management Corporation of Nigeria (AMCON) to recapitalise the three Bridge Banks last August.

According to him, the impression that the TSA was stifling banks was created by them to draw unnecessary sympathy, adding, “It is unfortunate that this is the way the banks have interpreted it. When I was in the bank, how much loan did I give you as a Small and Medium-sized enterprise?

“Coming here, the banks themselves have become my enemies because of the things I see that they do. Now, when these securities were available to banks, how did they use it to improve the lives of ordinary Nigerians? How much did they spend on agriculture, how much did they lend to SMEs? All they were interested in was taking these monies and lending them to Indians, Chinese and Lebanese to import goods that they produce in their countries, thus putting pressure on the foreign exchange.”

“Further to the guidelines for the operation of International Money Transfer Service (IMTS) in Nigeria of September 26, 2014, we have observed that some Deposit Money Banks (DMBs) are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into the accounts for onward disbursements to recipients in Nigeria,”

Amya:


Okay, so if oil provides 70% of government funds, then are you saying that FIRS, Customs and all internally generated revenue provide just 30%. Do your research. When they talk 70%, they talk of Nigerian export. don't confuse yourself. And to talk of the government being unable to pay salaries, read the thread title again.[b] The present economic woes is much bigger than oi[/b]l.

Ayodee2:
What most of us don't know is that before any action is taken in government circle so many things must have gone underground.

On d issue of TSA, The CBN and economic management teams of the previous government who initiated the idea must hv look over it. (positive and negative) So you can't blame the president for giving go ahead on the implementation except you want him to discard d idea.

The real issue is, what has the banks done with the money when it was in their vaults? Rather than lend the money to productive sectors of the economy they would prefer to invest it in treasury bills and other govt bonds and make quick money without doing anything.

Imagine banks investing govt money kept with them in govt bills and bonds and collect between 12- 15% interest from the same govt for doing nothing. Money that ought to be used for developmental purpose going to private purse.

Imagine how many Nigerians would be gainfully employed if banks had lend at least 2 trillion of the TSA fund in SMEs and our textile industries or even in building refineries?

plaetton:


Lol.

This guy doesn't understand the real role of banks in an economy.

Banks leverage deposits to create money and credit , that in turn, stimulate and expand the economic activities.

The amount of deposits the banking system has is directly proportional to the amount of money and credit they create to fuel economic expansion.

Draining 4-5℅ of GDP from the banking system at once , for any reasons whatsoever, is unheard of, talkless of doing it in a monoproduct economy at a time economic contraction.

Amya:


Okay, so if oil provides 70% of government funds, then are you saying that FIRS, Customs and all internally generated revenue provide just 30%. Do your research. When they talk 70%, they talk of Nigerian export. don't confuse yourself. And to talk of the government being unable to pay salaries, read the thread title again. The present economic woes is much bigger than oil.

Growth in the Non-oil sector was largely driven by. . . .Agriculture, Information & Communication, Water supply, Arts entertainment
and recreation Education and Other Services which all grew positively while the remaining 19 major sectors, many of which are substantially indirectly dependent on the oil sector recorded negative growth. The non-oil sector accordingly, declined by 0.38% in real terms in the Second Quarter of 2016.

majekdom2:
even Norway is not having it good because of the price of oil. We did not save when there was a boom . TSA is not the reason for the present situation. Majority of the present bad an non functional loans were given to oil players instead of SME's that would have generated more IGR. Like I said, banks should look to support SME now and not wait for free government money.

Amya:


You do know that our crude oil only raises about 13% of the country's revenue right? just 13%. So even if the crude oil market collapses, the economy should still survive.

Let me break it down for you. The other 87% is sourced from FIRS, Customs, and 100s of other government bodies that have charges for every conceivable thing. Now, this 87% amounts to trillions of Naria which before the enactment of the TSA were monies paid to different banks everyday. Though these monies are technically government money, they were liquid and banks used them to transact businesses give out loans and make money circulate in general. Now with the emergence of TSA, these monies are just packed somewhere and therefore does not benefit the economy business wise. And we are talking trillions here.

So yes, the TSA can and did lead the country to recession.

justsun:
*People re indeed suffering in this country that is a clear fact not a lie but ever now and then I h ave been wandering what brings the* *SUDDEN CHANGE OF LIFE IN THIS COUNTRY*.
I just realized that the hardship faced by many
*Nigerians* is simply as a result of the fact that
we have all benefited from the cycle of
*corruption.*
The bricklayer, plumber, labourers, tiler are all
complaining because building construction has
slowed down massively because the (so called
patriotic) thieves(who don't just take the whole
loot outside our shores to buy houses) no longer
have money to spend on real estate.
*Some Civil servant* that usual collect more than
*70 person* (ghost workers) salary via *proxy accounts* is no longer business as usual, they
can not longer leave exorbitant life as before.
*Oil marketers* that usually hoard petroleum
product to make it scarce in order to sell it at
high price or transport it outside d country for
large profit n still get there subsidy from
government is no longer business as usual.
*The car dealers* are grumbling because their cars
are begging for buyers.
*Thieves* can no longer spend wastefully.
*The private school owners* are shouting because
parents can no longer pay outrageous sums and
are withdrawing their wards.
I was shocked when I learnt that in a popular
*private University* in Abuja, parents are writing
undertaking at the account section for their
children to be allowed to write exams... and it
goes on and on.
The fact is, a lot of people are returning to what
someone referred to as 'default mode'.
We mostly have been living above our real
means. We have been staying in houses that
ordinarily our incomes can't afford.
Our children going to schools we can't afford.
*Driving cars we ordinarily can't maintain.*
We have been living a fake life all along. Now
the reality is before us and we don't want to
accept it.*

shaddoww:
The more dis guy talks, d less intelligent he appears. So TSA reduced d price of crude oil, it stopped the release of money for capital projects for months due to budget delay, it reduced our foreign reserves too abi. And lastly, was it TSA dat borrowed money from banks in billions n refuse to pay?

Khd95:
Senator representing twitter constituency alias mr common sense.


U seems to be very active online,no traces of u when it comes to nation issues,i mean how come u havent iniated or sponsor a bill to at least drive home ur common sense points

plaetton:


Lol.

This guy doesn't understand the real role of banks in an economy.

Banks leverage deposits to create money and credit , that in turn, stimulate and expand the economic activities.

The amount of deposits the banking system has is directly proportional to the amount of money and credit they create to fuel economic expansion.

Draining 4-5℅ of GDP from the banking system at once , for any reasons whatsoever, is unheard of, talkless of doing it in a monoproduct economy at a time economic contraction.

Amya:


Okay, so if oil provides 70% of government funds, then are you saying that FIRS, Customs and all internally generated revenue provide just 30%. Do your research. When they talk 70%, they talk of Nigerian export. don't confuse yourself. And to talk of the government being unable to pay salaries, read the thread title again. The present economic woes is much bigger than oil.

blueto:
the implementation of the TSA was being done in phases or gradually by the previous govt.

the reason was that the previous govt understood the fact that the Nigerian banking industry & by extension the economy was primarily driven by government spending & while there were concrete plans to make it more private sector driven, it knew that pulling out government funds from the banks in one fell swoop would negatively impact the economy, might lead to a recession, create instability in most banks, restrict the ability of banks to loan money to investors, threaten existing loans and other negative consequences.

hence the gradual implementation, with banks adjusting gradually to the changing times.

But unfortunately for the Nigerian economy, the certificateless cattle rearer who was devoid of economic knowledge and proficiency was voted in and without even considering the repercussions of the swift implementation of TSA, quickly implemented it in full scale and blamed Jonathan for failing to implement it in full scale, of which ultimately submerged the economy into recession.

No wonder Obasanjo had to admit that Buhari is not economically sound despite their current fraternization.

blueto:
the implementation of the TSA was being done in phases or gradually by the previous govt.

the reason was that the previous govt understood the fact that the Nigerian banking industry & by extension the economy was primarily driven by government spending & while there were concrete plans to make it more private sector driven, it knew that pulling out government funds from the banks in one fell swoop would negatively impact the economy, might lead to a recession, create instability in most banks, restrict the ability of banks to loan money to investors, threaten existing loans and other negative consequences.

hence the gradual implementation, with banks adjusting gradually to the changing times.

But unfortunately for the Nigerian economy, the certificateless cattle rearer who was devoid of economic knowledge and proficiency was voted in and without even considering the repercussions of the swift implementation of TSA, quickly implemented it in full scale and blamed Jonathan for failing to implement it in full scale, of which ultimately submerged the economy into recession.

No wonder Obasanjo had to admit that Buhari is not economically sound despite their current fraternization.

babyfaceafrica:
Shameless twitter senator