The House of Representatives on Tuesday raised questions over a “purported” presidential approval withholding some special Nigerian National Petroleum Corporation accounts from being transferred to the Treasury Single Account.

The accounts, with funds worth N50bn, are still being kept by commercial banks in breach of the TSA policy, which provides that all accounts belonging to Ministries, Departments and Agencies of government should be transferred to the TSA.

The TSA, a centralised Federal Government revenue account, is kept by the Central Bank of Nigeria.

A Nigerian firm, SystemSpecs, provides the Remita electronic platform for running the TSA, saving the Federal Government revenue that could, ordinarily, have been lost.

An ad hoc committee of the House chaired by a member of the All Progressives Congress from Kano State, Mr. Abubakar Danburam-Nuhu, found out that the NNPC directed some commercial banks to still keep the accounts outside the TSA.

The CBN confirmed to the committee that it was aware of the excluded accounts, pointing to a document tendered by the NNPC saying that there was a presidential approval.

The said approval was a memo written by the Chief Staff to the President, Mr. Abba Kyari, authorising the NNPC to exclude the accounts from the TSA.

Expressing surprise over the discovery, Danburam-Nuhu stated, “Banks are still holding accounts with funds up to N50bn outside the TSA.

“The banks claim that there is an approval by the President for the accounts to operate outside the TSA.

“These are NNPC’s accounts and the corporation must produce evidence of the presidential approval.”

A senior official of the CBN, Mr. Dipo Fatokun, confirmed to the committee that the NNPC indeed wrote to inform the apex bank of the exemptions.

However, Fatokun specifically mentioned accounts relating to Joint Ventures operations as the NNPC accounts covered by the exemptions.

“The banks are actually holding some accounts. We are aware. It’s not yet a case of 100 percent transfers to the TSA,” Fatokun explained.

He also informed the committee that some accounts still being kept by the banks had legal limitations, while others were accounts owned by the Judiciary and the National Assembly.

“We are compiling a report on each of the banks and it will be ready soon,” Fatokun told the lawmakers.

A memo by Kyari, purporting to convey President Muhammadu Buhari’s exemption directive, was analysed by members of the committee and was rejected as “not convincing.”

One member, Mr. Edward Pwajok (SAN), said the memo didn’t say much other than opening with the line, “I have been directed.”

Pwajok added that in the circumstances, the proper thing to do was to summon Kyari to convince the committee that Buhari indeed granted the exemptions.

“Let him come here to show us the evidence of the directive given to him by Mr. President,” Pwajok said.

Another member, Mr. Simon Arabo, noted that Kyari’s memo appeared to be an “Executive Order,” which had to be further examined by the committee.

The committee made two rulings. The Group Managing Director of the NNPC, Mr. Maikanti Baru, was summoned to produce the presidential approval within 48 hours.

It also directed the CBN to submit a reconciliation report on the accounts still kept by commercial banks before the end of this month.

The committee commended SystemSpecs for the efficiency of its operations and urged the government to pay for its services.

Danburam-Nuhu stated, “SystemSpecs is being owed money for services it rendered to the country over a period of time. The company should be encouraged.

“If a local firm has performed this well, why owe them money?

“The committee will ensure that the money that is due to Remita and other stakeholders is paid.”

lalasticlala

Presidency exempts NNPC, PHCN, BoI, 10 others from TSA

Posted By: Nduka Chiejina On: September 22, 2015 In: Business
1 

The Federal Government has exempted 13 government agencies from the current Treasury Single Account (TSA) arrangement related to electronic or e-collection and mop up exercise of government funds from commercial banks.A circular exempting the agencies was communicated to Central Bank of Nigeria (CBN) from the Office of the Accountant-General of the Federation (OAGF).
The exempted agencies of government are “profit oriented government business entities that pay dividends to the Federal Government of Nigeria.”

The circular addressed to the Director, Banking and Payments System Department of the CBN, with FD/LP2015/C/ADC/20/1/ /DF as reference number was dated September 14 this year. It was signed by M K Dikwa, for the Accountant-General of the Federation, Federal Ministry of Finance, Funds Department, Abuja, FCT.
The exempted agencies are:

Nigeria National Petroleum Corporation (NNPC), Power Holding Company of Nigeria (PHCN), Bank of Industry (BoI), Nigeria Railway Corporation, Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta Power Holding Company/National Integrated Power Project, National Communication Satellite Limited, Galaxy Backbone Ltd and Ajaokuta Steel Company Ltd.
Others are Urban Development Bank, Nigerian Export – Import Bank and Transcorp Hilton Hotel.

The circular titled: Approval to Exempt Some MDAs in Line with the e-Collection Mop Up Exercise, read: “Approval is hereby granted to your bank (CBN) to exempt the Accounts of 13 MDAs (category six) as listed below the mop-up in line with the e-Collection Circular No. HCFSF/428/S.1/120 dated 7th August 2015 as these are profit-oriented government business entities that are to pay their dividends into the Treasury Single Accounts whenever they are declared.”
The circular urged the CBN to “note that in line with the Presidential approval, the following as it relates to NNPC as listed above (S/No.9) under Category 4 should also apply:

“That National Petroleum Invetsment Management Services (NAPIMS) remains classified as an MDA that is funded from the Federation Account under Category 4 of the Circular, being the NNPC business unit responsible for the management of the Federal Government’s investment in upstream activities and funded from direct proceeds of oil and gas revenue.

“That NNPC will continue to preserve the status with respect to NAPIMS Operations Account as well as Escrow Account for Third Party Financing in view of the Joint Venture (JV) cash funding currently being experienced; and that all other NNPC’s commercial/business entities as re-classified as ‘Profit Oriented Public Corporations/Business Enterprises’ under Category 6 of the Circular which requires that only dividends from these entities be paid into the TSA.”

When contacted Mr Ohi Alegbe spokesman for the NNPC said the NNPC will continue, as it has always done, to remit its accruals into the Federation Account but that the JV cash-call obligations with its partners will use commercial banks and not the CBN.

http://thenationonlineng.net/presidency-exempts-nnpc-phcn-boi-10-others-from-tsa/

Nigeria Buhari FG to exempt NNPC, others from TSA

ON September 23, 2015 10:41 AM / IN


There were indications yesterday that the Federal Government may exempt Nigerian National Petroleum Corporation, NNPC, and several other agencies from the Treasury Single Account, TSA, policy.
It was learned that the decision to exempt the agencies from TSA was reached after a meeting of officials of the affected agencies with the Accountant-General of the Federation, Alhaji Ahmed Idris and Directors in his office.

Sources told Vanguard that President Muhammadu Buhari had been fully briefed by the AGF on why some agencies had to be allowed to receive revenue into bank accounts other than the TSA.
It was disclosed that the agencies’ operations would be hampered if all their revenues were to be paid into the Central Bank of Nigeria, CBN, before they secure approvals through the bureaucracy to make withdrawals to finance such operations.
All affected agencies are commercial organizations.

Agencies affected

In addition to NNPC, it was learned that Bank of Industry, BOI, Federal Mortgage Bank, Bank of Agriculture, Urban Development Bank, Nigeria Export Import Bank, Nigeria Independent Power Project, NIPP, Galaxy Backbone and Nigeria Railways were equally exempted.
President Buhari’s administration has been under tremendous pressure over the TSA.

Banks fear that it would adversely affect their operations should all Federal Government funds be pooled into the apex bank.
The quasi-commercial entities also mounted pressure on government as they argued that the TSA would not allow for the smooth operations of their organizations.

As learned, when the guidelines are announced by the AGF, there could be a long list of many departments and agencies of government that would be exempted from the policy.
However, the AGF had repeatedly said that there would be no going back on the implementation of the policy.
He told journalists last weekend that the detailed guidelines would be announced within a short time.

https://www.vanguardngr.com/2015/09/fg-to-exempt-nnpc-others-from-tsa/

eagleeye2:
They will pretend this thread is not existing.

Biggty:
Buhari is just a useless figure head, so many corruptions going on around him

lakpalakpa:




This exemption was as far back as September 2015. Have you been in Mars since then?

ItsTutsi:
these igbo Jews have no sense of reasoning at all,something that happened in sep 2015

baybeeboi:


And who was president in September 2015?

lakpalakpa:


As at when TSA implementation was to commence several accounts were omitted for the sake of operational efficiency of certain MDAs. So what's all the fuss about??

tit:
buharinternational thief theif

BeeBeeOoh:
This Anti-Corruption fight is nothing but a Facade dazzol

anonimi:
Nigeria using UK aid to persecute president's political foes rather to fight Boko Haram


Hundreds of millions of pounds of British foreign aid given to Nigeria to help combat Boko Haram terrorists is instead being used to fund a witch-hunt against opposition politicians, it is being claimed.
Britain has committed to spending £860 million in foreign aid to Nigeria, which now boasts Africa’s largest economy, to help support the country’s efforts to crush Boko Haram terror group, which has been responsible for a spate of outrages, including the kidnapping of hundreds of Nigerian schoolgirls.

But Western officials are now raising concerns that the government of the country’s recently elected leader, President Muhammadu Buhari, is misusing the funds to persecute political opponents.

Since Mr Buhari came to power last July, a number of prominent members of the former ruling People’s Democratic Party (PDP) have been arrested and imprisoned without charge. Among those detained was the party’s official spokesperson.

Most of the arrests have been sanctioned by the government-controlled Economic and Financial Crime Commission, which was set up to tackle corruption and receives funding from the Department for International Development.

But while Mr Buhari’s government continues to use British aid money to target his political opponents, it is proving less effective at tackling the Islamist-run Boko Haram terrorist group.

Much of the aid Britain provides to Nigeria is aimed at helping the country’s security forces to become more effective at tackling Boko Haram, which boasts of its links with Islamic State (Isil) and achieved international notoriety two years ago after kidnapping 276 schoolgirls in northern Nigeria two years ago.

More from: http://www.telegraph.co.uk/news/2016/04/12/nigeria-using-uk-aid-to-persecute-presidents-political-foes-rath/

Ikwokrikwo:
Yoruba muslims will still defend Buhari after this brazen act of corruption.

lakpalakpa:


As at when TSA implementation was to commence several accounts were omitted for the sake of operational efficiency of certain MDAs. So what's all the fuss about??