The Central Bank of Nigerian (CBN) has warned banks to move all government accounts to its custody in line with the Treasury Single Account (TSA) rules or face severe sanctions.
Tokunbo Martins, CBN Director of Banking Supervision said in a circular- “BSD/DIR/GEN/LAB/08/048” directed all banks to ensure none of government monies are still in their vault at the expiration of the September 15 deadline issued by President Buhari.
“Please note that the Central Bank of Nigeria will impose severe sanctions on any bank that fails to comply on or before the deadline of 15th September, 2015,” Martins warned.
President Buhari, setting a new deadline for full compliance on Monday referred to his earlier directive to MDAs 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 CBN, except otherwise expressly approved.
The fresh directive became necessary because a number of MDAs are yet to comply with the directive handed down about a month ago to facilitate transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.
The circular – HCSF/428/S.1/125 of September 4, 2015 noted that a number of MDAs were yet to comply with Circular Ref. No. HCSF/428/S.1/120 of August 7, 2015 which conveyed the President’s original directive on the payment of all Federal Government revenue into a Treasury Single Account.
“In this regard, His Excellency, Mr. President has directed that all MDAs are to comply with the instructions on the Treasury Single Account (TSA) unfailingly by Tuesday, September 15, 2015,” Head of the Civil Service of the Federation, Danladi Kifasi had noted in the Monday notice to MDAs.
But as a follow up to the President’s directive, Tokunbo Martins urged banks to ensure full compliance within the stipulated deadline without any excuses.
“The Federal Government of Nigeria recently gave a deadline of September 15th 2015 for all balances/receipts due to the Government or its agencies to be paid into the Treasury Single Account (TSA) maintained with the Central Bank of Nigeria.”
“Banks are therefore directed to ensure that all such funds are remitted in line with the directive on or before the given deadline,” she stated in the circular posted yesterday on the CBN website.