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

•President Buhari

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.
Chinedu Moghalu of NEXIM confirmed that NEXIM has been exempted from  the TSA sheme while Shola Adeyemo of Transcorp Hilton Hotel said the firm is “aware of such a directive.”
An official of BoI who pleaded not to be named said  as a developmental institution, BoI does not fall into that category.
He noted that  BoI manages intervention funds on behalf of the CBN as a result, the BoI  will have to be exempted from the TSA arrangement.