Makes no sense. The payers already bear transaction charges on the services they're paying for, why make them bear additional cost just to deliver the funds to the TSA?

Make access to the TSA a common pass-through to other service providers so they don't have to rely solely on Remita for the last mile delivery to the TSA

nwakibie3:
Ifeanyi Onuba, Abuja

The Federal Government has within the last two years incurred a total amount of N16bn as transaction costs on the Treasury Single Account.

The Accountant-General of the Federation, Ahmed Idris, disclosed this on Sunday in Abuja.

A statement issued by the Director, Press, Office of the Accountant-General of the Federation, Mr Johnson Oise, revealed that the Federal Government had been bearing the cost of transmission of funds into the TSA and would not want to do so anymore.

The statement said, henceforth, the Federal Government would no longer bear the service charge on all payments to its Ministries, Departments and Agencies as such costs would be borne by the payer.

It said, “Within the last two years, the government spent almost N16bn in this direction which ordinarily should be borne by those making payments.

“So, it is time for Nigerians to pay for the services that they receive and the government will take whatever is due to it without necessarily incurring cost.

“In the old tariff regime, the Federal Government bore the charges on all transactions to the service providers on behalf of payers.’’

Idris said a lot of sensitisation had been done to give enough room to understand the new tariff regime and for compliance, adding that the charges were minimal and negotiable.

“By negotiable, I mean by the introduction of more players in the market, definitely the charges will come down from whatever they are now, but right now discussions are going on to make the charges as minimal as possible.

“We are liberalising the market and it has to be a level playing field for all operators to operate and that is what will happen,” he added.

The AGF said that the Central Bank of Nigeria, as the regulator which stipulates the rates of the charges, would always intervene if any service provider charged beyond the approved rate.

The TSA initiative, which took off fully in September 2015, had led to the closure of 20,000 bank accounts while over N8tn had been moved from banks to the CBN.

A total of 1,674 MDAs have been enrolled on the TSA platform.

The Accountant General of the Federation, Alhaji Ahmed Idris, had said that the TSA policy had assisted the government to address a lot of impediments affecting the efficiency of public finance.

The AGF said that the government was currently enjoying a lot of benefits from the implementation of the TSA policy.

For instance, he stated that through the policy, the government had been able to block leakages and abuses which had characterised the public sector before its commencement in September 2015.

Apart from blocking leakages, Idris said the TSA initiative had assisted the government to overcome the burden of indiscriminate borrowings by MDAs, thus saving the government a lot of bank charges associated with such borrowing.



https://punchng.com/fg-incurred-n16bn-transaction-costs-on-tsa-agf/

@bigtt76
yes the payers already do pay the transaction charges...and it makes no sense increasing it.

but Remita has a % charge agreement on funds collected with the government on another side - that's what they ought to reduce or sort out BY DEVELOPING THEIR OWN SOFTWARE OR CODES & stop using 3rd parties.
That way, they only pay a one-time fee for the developers and own the infrastructure themselves thru CBN of Min. of Finance or whatever agency they chose.
poor management again!!!

plaetton:

Kindly explain the benefits to us.
Thank you.

TSA is a central account like a government bank where all agencies,ministries etc funds are retired to.
If any agency needs money for any projects they just prepare a document to get whatever amount they needs, if it is approved the money is released to them.

Then in the future such govt agency either return the money or money that ought to be credited to them is deducted against what they received earlier.

It is like you going to first bank and get free loan, then you pay later but if you fail to payback, when money is to be released to you they deduct it at source.

Before the advert of TSA these agencies gets loan money from other sources as banks, pending when they received money from budget. They then pay with interest.

Let's say to borrow N100K from TSA you pay back N100k or when N100k is to be credited to you and you have not repay the balance you are owning they then balance the account and close the account. But if you get the money from bank there is an interest rate you must pay as charges when you receive money and want to pay .

There are thousands of transactions running in billions and millions of naira changing hands among all the government agencies weekly, monthly and yearly that these agencies are benefiting from yet not paying interest on. If they are paying interest on . banks would have changed them more than N16B


TSA is a kind of secured MMM

Trustme2:
They saved 10b by using TSA but incurred 16b as running costs
Nigeria is full of scam

Stop misinforming Nigerians. The Federal Govt saves N24.7 Billion monthly not N10b in total. Nothing will bring back your looters into power. stop deceiving yourself and the gullible.

This honest man is transforming your country and you keep trying to run him down. for the sake of the coming generation, lets all do what is right.

Since Independence, We have only had 3 Administration openly challenge the corrupt elites. 2 Admin were taken out immediately (Murtala Mohammed and Buhari/Idiagbon) and 1 is still fighting for us today (Buhari again).

If they successfully take out Buhari again. then it will take maybe another 50 years before someone comes to fight for us again. #Think Nigerian youths, #Think

''Guide our leaders right, Help our youth the truth to know''

https://www.vanguardngr.com/2018/02/tsa-buhari-govt-saves-n24-7bn-monthly-fg/

http://dailypost.ng/2016/02/24/nigeria-has-realised-n2-7trn-from-tsa-buhari/

Zamzamiu:


Are you a beneficiary of the old regime?

I'm a beneficiary of EVERY regime from Obasanjo to Buhari fortunately. But that is not the case for MOST Nigerians.

The TSA was Ngozi's idea. It's a wonderful idea. The concept being that the best way to stop corruption is to cut off access to the money.

It has a major flaw. It reduces the money in circulation within banks (not individuals) and subsequently financial jobs were cut by sometimes nearly half and the essence of money available for lending was defeated. Banks that were not giving loans stopped giving the more. Ancillary jobs were lost. The deposits in banks earned interest but that with CBN does not. Etc etc

Ngozi saw this and was reluctant to implement it.butwent ahead with salary centralization via IPPIS to shut out ghost workers.

Budget implementation is around 20% in some ministries because only ONE office releases funds to ALL government offices. In the past the Director of finance of all ministries and parastatals can issue cheques to begin or complete work done.

Now you have less contracts in the nation. (Less WHT, VAT, Income tax, corpoate tax and less income for govt by implication) Meaning less jobs. Meaning less policy implementation. Meaning less development. So everyone now is facing the centre for ALL their needs.

In a struggling economy you implement Monetary and Fiscal Policies.
Monetary involves manipulating interest rates, inflation, lending etc
Fiscal involves Governmet releasing and/or spending money so it trickles down via quantitative easing etc

TSA as obtained in Nigeria is anti fiscal policy. And it didn't achieve what it was supposed to do. Reduce corruption. Cos naija is now doing worse on the intl corruption index under APC.
Fi

Mace0lane:
. It is lie that will finish your entire Igbo tribe. Where did it say they save 10 billion in the article ?



Your Igbotic father is a bigger bastard I tell you for this lie you stated. Where in the article did it say only 10 billion was saved. Your shameless father no de shame to lie shamelessly daily.

Myndd44,Lalasticlala e.t.c

Rule 2 broken

Yes so government should deal with it or let CBN buy the platform outright and offer the service to the public for free. The government engaged payment gateways to process transaction payments on their behalf, would they now start charging the people and or the payment gateway to deposit the monies to the government account? Haba!

The solution here is for CBN to build a standard web service/API through which these payment gateways would settle the collected funds to the CBN's TSA account without incurring excess charge.

Remita platform is just that Web service/API to the CBN's core banking application (paid for using the tax payers money by CBN) and not that it was built by Remita. That web service/API should be available to certified payment gateways to integrate to at their own cost ....simple as that

careidon:
@bigtt76
yes the payers already do pay the transaction charges...and it makes no sense increasing it.

but Remita has a % charge agreement on funds collected with the government on another side - that's what they ought to reduce or sort out BY DEVELOPING THEIR OWN SOFTWARE OR CODES & stop using 3rd parties.
That way, they only pay a one-time fee for the developers and own the infrastructure themselves thru CBN of Min. of Finance or whatever agency they chose.
poor management again!!!

Mace0lane:


See mumu you call Buhari bastard I responded your father Na the real ogbonge bastard filled with nothing but hopelessness n irredeemable endemic hate. You de call mod. Will the mod not ban you for calling the president bastard before banning me. Abi who sabi your bigoted hopeless Igbotic father for Nigeria. That hopeless puccie you are not ashamed to call your father. I spite on his grave.

Myndd44,Lalasticlala e.t.c rule 2 broken.....I have been banned for less so do the needful.

Mace0lane:
. It is lie that will finish your entire Igbo tribe. Where did it say they save 10 billion in the article ?



Your Igbotic father is a bigger bastard I tell you for this lie you stated. Where in the article did it say only 10 billion was saved. Your shameless father no de shame to lie shamelessly daily.

Your stupidity knows no bounds just imagine the kind of people we have in this country