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Tag: TSA

  • FG excludes universities, research grants from TSA

    FG excludes universities, research grants from TSA

    The Federal Government has directed the exclusion of third-party research grant funds of federal universities and research institutions from the Treasury Single Account (TSA).

    The directive is contained in a letter signed by the Acting Executive Secretary, National Universities Commission (NUC), Chris Maiyaki, to Vice Chancellors, dated Sept. 6, 2024, and made available to newsmen in Abuja on Monday.

    According to him, the Minister of Education, Prof. Tahir Mamman, has conveyed the President’s directive to the Coordinating Minister of Finance and National Economy, Wale Edun, mandating the exemption.

    Maiyaki said the directive also grant universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks.

    He said the move was expected to enhance the financial autonomy of universities and research institutions, promoting research and innovation in the country.

    “The National Universities Commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324 and dated Sept. 4, 2024.

    “Forwarding the correspondence from the Principal Secretary to the President, State House, also vide PRES/87/MF/71/198/MBEP/15 and dated 23rd July 2024, on the above subject.

    “The letter communicates Mr President’s directive to the Honourable Minister of Finance and Coordinating Minister of the Economy to exclude third-party research grant funds of federal universities and research institutes from the TSA.

    “And to grant universities and research institutes autonomy in operating their endowment fund accounts in commercial banks.”

  • LG autonomy: FG will soon instruct 774 LGs, FCT councils to hook up to TSA within 90days

    LG autonomy: FG will soon instruct 774 LGs, FCT councils to hook up to TSA within 90days

    Following the Supreme Court’s interpretation regarding the full autonomy of Local Governments (LGs), it is important to recognize that LG accounts are currently not linked to the Federal Government’s Treasury Single Account (TSA) as mandated.

    The Federal Government will, in due course, instruct the 774 Local Government Areas (LGAs) across the federation to open or link their accounts to the Federal Government’s TSA within 90 days of the notice.

    This action will effectively separate LGA accounts from their respective state accounts.

    During the transitional period, state governments will continue to oversee the financial affairs and expenditures of the LGA councils until all necessary requirements for full LG autonomy are fulfilled, solidifying the LGAs’ status as the third tier of government.

    For the 21 states without elected Council Chairmen, state governments will continue to receive allocations directly into their state accounts. However, these funds will be supervised by the Heads of Local Government Administrations (HLGAs) and Treasurers, under the control of the existing Caretaker Committee Chairmen, for the 90-day period. This measure ensures that LG workers receive their wages while state governments conduct local government elections.

    This directive also applies to the Federal Capital Territory (FCT).

  • FCTA pulls out of Treasury Single Account

    FCTA pulls out of Treasury Single Account

    The Federal Capital Territory Administration (FCTA) has been pulled out from the Treasury Single Account (TSA).

    Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike made the disclosure on Friday, saying President Bola Tinubu gave the approval.

    Wike, who disclosed this while briefing journalists in Abuja, said that the development would take Abuja capital city to where it was supposed to be.

    He lamented that FCT was littered with projects, adding that the projects were being awarded without the requisite financial backing.

    Wike said that part of the problem was the inclusion of FCTA into the TSA, however describing it as a tool that unifies all government accounts in the Central Bank of Nigeria (CBN) for effective management of finances and cash position.

    This, according to him, is not necessary for FCT Administration because it is not a revenue collecting agency for the Federal Government.

    “Take for example, so many projects were awarded in 2002, 2007, and 2010 and up to now they have not been completed.

    “You can imagine a project that was awarded in 2010, this is 21 years. Imagine what they will cost now,” Wike said.

    The minister added that the utilisation of Internally Generated Revenue (IGR) was another problem, decrying that the FCTA IGR was spending funds as they came.

    This, he said, could not tangibly be of any benefit to the administration.

    “So, I went to Tinubu and said, Mr president, if you want FCT to carry out development projects and infrastructure among others, then they must come out from TSA.

    “What is the essence of TSA; blocking of leakages and the rest, FCTA is not a revenue collection agency for the federal government so what are you blocking?

    “If I need money for projects, I cannot go to the CBN and say give us money, CBN will not give us money.

    “I can go to a commercial bank but how do we pay? I say the best bet is that we must pull out,” Wike said.

    The minister explained that, if FCTA was out of TSA, it could approach a commercial bank, collect loan, and tie it to its IGR.

    He said, “Assuming I want to collect N400 billion from the bank, I can say our IGR is about N20 billion a month, can you take N10 billion every month and in a year, we have paid N120 billion.

    “That is the only way we can survive it and Mr President graciously agreed with us and approved that we should pull out from the treasury single account.”

    Wike assured the residents of  FCT that with this development, myriad of projects would spring up from next year in FCT.

    He thanked Tinubu for his foresight, adding, “with this development, insecurity in the FCT will soon be a thing of the past.”

  • Katsina governor orders implementation of TSA

    Katsina governor orders implementation of TSA

    The Katsina State Governor, Mallam Dikko Radda has announced the commencement of Treasury Single Account (TSA) in the state with immediate effect.

    The governor in a circular issued on Monday in Katsina tagged, ‘Treasury Single Account Direction Notice 2023’, said the implementation takes effect from July 3.

    According to him, the measure is in the exercise of the powers conferred on him by the provisions of Section 5(2) of the 1999 Constitution, as amended.

    “Without prejudice to Section 120 of the 1999 Constitution (as amended), all revenues and monies accruing and forming the Consolidated Revenue Fund, including funds from excess crude account, grants or donation for Katsina State shall be paid into a unified account to be referred to as TSA.

    “Out of which all expenditure incurred or approved to be incurred shall be defrayed or paid.”

    He directed the Accountant General of the state to prescribe the framework within which Ministries, Departments and Agencies will henceforth conduct their bank and cash management under the TSA regime.

    The governor also directed the Commissioner for Finance, Accountant General and the Auditor General of the state to ensure total compliance.

  • Buhari approves partial exclusion of MOFI from TSA

    Buhari approves partial exclusion of MOFI from TSA

    President Muhammadu Buhari on Tuesday in Abuja approved the partial exclusion of the Ministry of Finance Incorporated (MOFI) from the Treasury Single Account (TSA).

    Buhari also granted the request of the Board of MOFI to charge management and transaction fees; and the inclusion of the Minister of Power in the Governing Council.

    A statement by Mr. Femi Adesina, the President’s spokesman, said the president conveyed the approval at the 1st Governing Council meeting of MOFI in Abuja.

    The new MOFI was launched on Feb. 1, 2023, to transform it from a registry of investment records to a World-Class Asset and Investment Management Company.

    The president maintained that as a government-owned investment company, MOFI must be supported to exercise its responsibility of achieving strong returns on investments, while also contributing to broader economic development of the country.

    He commended the Minister of Finance, Budget and National Planning, Zainab Ahmed, the Chairman Board of MOFI, Shamsuddeen Usman, and the entire Executive Team of MOFI for the job well done, three months after inauguration.

    ‘‘MOFI’s mission is to generate strong risk-adjusted returns, contribute to the well-being of Nigerians, and be a trusted steward of our nation’s assets and investments.

    ‘‘With a vast portfolio and strategic investments that span across multiple sectors, MOFI has the potential to shape industries, spur innovation and support economic growth.

    ‘‘I am glad to note, from the Board and Management update, the crucial activities and positive engagements by MOFI in just three months after inauguration,’’ he said.

    The president, therefore, charged staff and management team of the investment company to continue to work closely with other government agencies, the private sector, Development Finance Institutions (DFIs), and other stakeholders to ensure that they achieve shared goals and
    objectives.

    On the restructuring of MOFI, Buhari explained that ”it is a clear indication of the government’s commitment to harnessing and creating value from its assets and investments”.

    According to him, the Federal Government is now positioned to optimise its assets, make strategic investments, diversify the economy, generate more revenue, revive public enterprises and increase transparency in the public sector.

    The president reminded members of the council that they have been carefully chosen because of their expertise, experience and dedication to serving the nation.

    While expressing confidence in the abilities of each Council member to bring unique perspectives, insights and skills that would enrich collective decision-making, the president said:

    ‘‘Our role as the governing council is many-sided. We must ensure that MOFI’s investments are aligned with Nigeria’s economic objectives.

    ‘‘We must ensure that we put in place strong governance policies; We must uphold the highest standards of governance and transparency.

    ‘‘We must engage with MOFI to understand their aspirations, needs and challenges, we must continue to adapt and innovate in a rapidly changing world.’’

  • N109b fraud: FG faults IPPIS, GIFMIS, TSA, sets up committee for review

    N109b fraud: FG faults IPPIS, GIFMIS, TSA, sets up committee for review

    The Nigerian government has admitted it did not follow established standards in the deployment of the Integrated Payroll and Personal Information System (IPPIS), Treasury Single Account (TSA) and the Government Integrated Financial Management System (GIFMIS).

    Minister of Communication and Digital Economy Isa Pantami, disclosed this on Friday in Abuja, said the systems failed to comply with section A of the) National Information Technology Development Agency (NITDA) Act 2006.

    IPPIS, GIFMIS and TSA were deployed in 2006, 2012 and 2015 respectively.

    ”These three systems were not subjected to government certification and IT project clearance as encouraged by law and many other government policies, ” Pantami noted.

    The Minister then inaugurated a presidential steering committee that would review the systems, identify vulnerabilities which have been exploited to divert public funds and advise government.

    “This committee will serve as a presidential committee with the mandate of ensuring the review of the strengths of these systems and the challenges or weaknesses.

    “The committee is to advise the president on how to improve the systems particularly if there are leakages that are being exploited by evil people.

    “We must identify where the challenges are if any, and see how these systems can be enhanced technically; so that we will be able to consolidate the gains achieved so far and also improve on them to achieve many more successes,” he said.

    It would be recalled that two weeks ago, the Economic and Financial Crimes Commission (EFCC), uncovered fresh facts on how the suspended Accountant-General of the Federation Ahmed Idris, compromised these systems to to steal N109 billion belonging to the government.

    Spokesperson of the EFCC Wilson Uwujaren, said Wilson Idris allegedly used the funds in constructing properties like the Gezawa Exchange Limited, Gezawa Integrated Farms, and Kano City Mall.

    Members of the committee include the EFCC, NITDA, Galaxy Backbone, Federal Ministry of Finance, Budget and National Planning and Office of the Head of Civil Service of the Federation (OHCSF).

    Others are: the Office of the Auditor-General of the Federation, National Salaries, Wages and Income Commission, Bureau of Public Service and Reforms (BPSR) and the Federal Ministry of Communications and Digital Economy.

    Pantami would serve as Chairman of the Committee, while NITDA would serve as the secretariat.

     

  • N109bn fraud: How suspended AGF, Ahmed Idris compromised TSA, GIFMIS, IPPIS for personal gains

    N109bn fraud: How suspended AGF, Ahmed Idris compromised TSA, GIFMIS, IPPIS for personal gains

    Fresh facts have emerged on how the suspended Accountant-General of the Federation, Ahmed Idris compromised the Treasury Single Account (TSA), Government Integrated Financial Management Information System (GIFMIS), Integrated Payroll and Personnel information system (IPPIS) and carted away billions of naira belonging to the government.

    Idris and his co-defendants: Godfrey Olusegun Akindele, Mohammed Kudu Usman are standing trial in a N109 billion fraud before Justice A. O. Adeyemi Ajayi of the Federal Capital Territory High Court, FCT, Maitama, Abuja.

    At the resumed trial of the case on Thursday, July 28, 2022, Chief Investigative Officer of the case and Prosecution Witness One (PW1), Chief Superintendent of the Economic and Financial Crimes Commission (EFCC), CSE Hayatu Sulaiman Ahmed, while being led in evidence by the prosecuting counsel, Rotimi Jacobs SAN, told the court that the investigations by the EFCC showed that, Idris while in office, compromised key units under his care like the TSA, GIFMIS and IPPIS that led to the loss of funds by the government.

    Idris allegedly used the funds in constructing properties like the Gezawa Exchange Limited, Gezawa Integrated Farms, and Kano City Mall.

    “We had cause to invite several individuals who had transactions with the Gezawa Commodity and Exchange Limited and found one Baita Ibrahim Kura of B I Kura Ibrahim, a Bureau de Change (BDC) operator based in Kano. We invited him and cautioned him and he voluntarily wrote a statement, claiming he made several payments like N208 million into Gezawa Commodity Market with Jaiz bank”, he said.

    The witness further told the court that Ibrahim also admitted to have paid the sum of N866 million to one Architect Mustapha Mukhtar of Marsc Construction Limited for the construction of Gezawa Commodity Market and Exchange limited.

    “My Lord, investigation showed that Ibrahim received United States dollars from the first defendant. We also found out that agitation from the nine oil-producing states, regarding derivation from the excess crude account, was tabled before the Federal Account Allocation Committee, FAAC and the committee came up with a figure of about $2.2 billion as what was due to the nine oil producing states, and this amount was to be deducted over a 60 months period on a quarterly basis”, he said.

    The witness further told the court that 11.5% of this figure amounting to N44.7 billion was put aside as payments to some public officials to facilitate payments to the oil-producing states.

    “After the determination of this committee, my lord, some companies, Akindele and Co, a company owned by the second defendant, Godfrey Olusegun Akindele was presented under the guise of consultancy.

    “My Lord, until recently, the second defendant, Akindele was a staff in the office of the AGF, and Technical Assistant to the first defendant. Investigation revealed that N84.39 billion was paid into Akindele’s bank accounts. According to the witness, another transaction occurred on February 12, 2021, with N21 billion paid into his account.

    The witness further revealed that aside from the payment of money that was made on February 12, 2021, other payments were made on May 6, 2021, and between July 28, 2021, and November 5, 2021, amounting to N94.39 billion.

    Ahmed further told the court funds were shared with some groups, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), represented by one of its Commissioners, Peace Akomas, former Deputy Governor of Abia State, who allegedly collected N18.8 billion. He said the money was withdrawn by Akindele and converted to US dollars and handed over to Akomas.

    “The second group is the AGF group and it got a total sum of N18.01 billion. The third group, the Commissioners of Finance in the nine oil producing states, received N21.4 billion. The money was withdrawn by Akindele, converted to US dollars and handed over to Akomas on behalf of the group.

    “The fourth group is called the Yari group. This group received N17.15 billion. The entirety of the sum was transferred to the account of Fimex Professional Services on the instruction of the representative of this group: Abdulaziz Yari, former Zamfara state governor.

    “The remaining N8.9 billion naira was retained by the second defendant. Furthermore, N4.29 billion was converted to US dollars by Akindele as appreciation for the consultancy contract, and the balance of N4.6 billion was given to Akindele,” he said.

    Ahmed confirmed to the court that all his disclosures were confirmed by the defendants in writing, in their statements admitting to have collected all the monies.

    “Also, properties purchased with the funds by the first and third defendants were traced to various locations in Abuja, Kano, and Minna, Niger state,” the prosecution witness said.

    Earlier, Justice Ajayi admitted the defendants to bail on the terms earlier granted by the EFCC.

    One of the bail conditions is that the defendants should not leave the jurisdiction of the court without the court’s permission, and their passports deposited with the court’s registrar and in no circumstance should any of the defendants apply for an alternative passport, as doing so, will revoke the bail terms. They should also depose to an affidavit to adhere to the bail conditions.

    In the EFCC’s bail conditions, Idris was granted bail in the sum of N18 billion, and two sureties. One of the sureties should be a Permanent Secretary, and the other a Director in the Federal Civil Service with bond of N100,000,000 ( One Hundred Million Naira) each.

    Akindele was admitted to bail in the sum of N20 billion and two sureties who must be Directors in the Federal Civil Service and Usman was granted bail in the sum of N200 million and two Directors in like sum.

    The Judge thereafter adjourned the matter to August 10 and 11, 2022 for continuation of trial.

  • FG weeds 70,000 ghost workers from federal civil service

    FG weeds 70,000 ghost workers from federal civil service

    The federal government of Nigeria says it has expunged no fewer than 70,000 ghost workers from the payroll of the federal civil service.

    TheNewsGuru.com (TNG) reports Director-General, Bureau of Public Service Reforms (BPSR), Dr Dasuki Arabi made this known on Thursday.

    Dr Arabi revealed that the introduction of the Integration Personnel and Payroll Information System (IPPIS) reduced the Federal Civil Service personnel to 720,000.

    According to him, the IPPIS led to the weeding out of about 70,000 ghost workers from the service and hence saving the Federal Government over N220 billion.

    Arabi stated this while appearing at the 43rd Session of the ministerial media briefing organised by the Presidential Media Team at the Presidential Villa, Abuja.

    While giving key updates on the performance of the bureau in the execution of its core mandate, particularly in ensuring the full implementation of reform policies and programmes for the government, Arabi said the government also saved N10 trillion following the introduction of the Single Treasury Account (TSA).

    ”These are some of the benefits that we think government or Nigerians have benefited out of the work that we have been doing in collaboration with other agencies of government, where they, with the introduction of IPPIS, about 70,000 ghost workers have been eliminated from the payroll.

    “We have a one shot opportunity to look at IPPIS and say, as at today, we have 720,000 public servants working for Nigeria.

    “This is a great achievement which I think we need to encode and we need to get it celebrated by all of us.

    ”We’ve been able to reduce more than N220 billion wastage through wrong management of IPPIS on payroll by Ministries, Departments and Agencies of government. We have reduced the budget deficits and change the budget composition.

    “We have succeeded in getting the Treasury Single Account deployed in all ministries, departments and agencies of government.

    ”Challenges have come in that implementation at the initial stage, but we are overcoming that and government is able to save over N10 trillion over the years because whatever you’re generating now goes into a Treasury Single Account that is managed by somebody else, not you.

    “And government, especially at the top is always able to see what has come into our Treasury Single Account today and what has gone out of that.

    ”So, planning has been simplified. Budgeting has been simplified.

    “Our distribution and allocation of resources have been simplified and streamlined.”

    The director-general said as part of the reforms in the service, the Government Integrated Financial Management Information System (GIGMIS) had made government business paperless.

    According to him, it has reduced man to man contact and processing, payments in ministries, departments and agencies of government.

    He added: “Transparency has been improved. A lot of things are done even outside the office.

    ”But the most important thing is the ability given to central agencies, office of Accountant General of the Federation, and the Ministry of Finance to see what is happening in all ministries, departments and agencies of government because GIFMIS is not controlled by the agencies.

    “It is controlled by the central agencies, but every activity you are doing under GIFMIS somebody is watching you and is monitoring that activity.

    ”This is a great achievement for us and for all of you and for all Nigerians.

    “There is better access to information on finances in this country. Whatever you do, somebody’s watching you and somebody can request and get those information.

    ”International rating agencies standards and co have more confidence in Nigeria now because they have access to information and data that they were not able to get before this time.

    “Again, this is a breakdown of some of the benefits of the reforms that we’ve been  driving.”

    On deductions blamed on the IPPIS, which has been a source of friction especially between government and universities unions, Arabi affirmed that deductions just did not occur on their own except where loans had been obtained.

    He explained: “On deductions and complaints around IPPIS, you know, we have just started from the pilot ministries, six.

    ”We went to 10 then because of the push by the international community, especially the development partners, who are really eager to get Nigeria at that level at par with other nations we went through.

    “I remember, I’m privileged to be part of the team that started the discussion around IPPIS and were able to get different sectors of the Public Service to come and have meetings and discussions with us to understand their various cadre within the field, their pay structure; their responsibilities and all these have been taken care of.

    “Along the line, there are some new creations and I think there are some omissions, which government is addressing, but I would not take this man’s complain that their deductions like that, it cannot be arbitrary.

    “For every deduction that is done, there is justification for that. And if there are problems, they are identified and complaints made, that will be rectified. and quite a number of our colleagues, some may have taken lot of loans that have committed themselves, deductions are being made left, right and centre.

    “So, I want to assure you and the person that complained to you, that government is addressing some of these problems.”

    According to Arabi, the federal government is silently implementing aspects of the Oransanye Report on Civil Service Reforms.

    He said government would soon make an announcement on the implementation of the White Paper.

    “On Oronsaye white paper government has been working around that.

    ”You are aware that it was implemented in good time. And over the years, there have been changes.

    ”More agencies and commissions were created which makes it necessary for government to look back and say okay, between Oronsanye White Paper and today, how many more agencies have been created?

    “So, that was why those committees were created. But beyond that, I want to tell you that some silent aspects of the report are being implemented silently.

    ”We’re hoping that very soon we will conclude on that and the major activity will come.

    ”So, just wait for the announcement from the Secretary to the Government of the Federation, who is the chairman of the implementation committee of the white paper,” he added.

  • Buhari boasts: With eNaira, TSA, BVN, others we’ve created lot of comforts for investors

    Buhari boasts: With eNaira, TSA, BVN, others we’ve created lot of comforts for investors

    President Muhammadu Buhari Tuesday in Riyadh, Saudi Arabia, said initiatives to drive the digital economy and fight corruption in the country should give investors “a lot of comforts”.

    Among the initiatives mentioned by the president are e-Naira, Treasury Single Account, Bank Verification Number, and National Identification Number.

    Speaking at the fifth Edition of Future Investment Initiative Summit holding in Riyadh, Saudi Arabia, Buhari said his administration will keep encouraging public and private initiatives that increase investments in health, education, capacity building, youth empowerment, gender equality, poverty eradication, climate change, and food security.

    A statement from the presidency quoted the Nigerian leader urged more interest in infrastructure such as healthcare and education, which “present enormous opportunities for investors in a country our size.”

    “Digital Economy in Nigeria has many potentials for investment, as it has remained the fastest growing sector in both 2020 and 2021. Nigeria has many opportunities for investment in broadband, ICT hardware, emerging technology and software engineering.

    “We have recently approved the national policy on Fifth Generation (5G) network. Our aim is to attract investors in healthcare, smart cities, smart agriculture among others. The benefit of real time communication will support all other sectors of the economy,” he noted.

    To further improve and reposition the economy to attract investors, the President said, “e-Naira, the electronic version of our national currency, which puts us on track to become the first African country to introduce a Central Bank Digital Currency” was launched on October 25th, 2021.

    “We believe this and many other reforms, will help us increase the number of people participating in the banking sector, make for a more efficient financial sector and help us tackle illicit flow of funds.

    “To further strengthen our anti-corruption drive, increase accountability and transparency, we have centralized government funds through a Treasury Single Account, and ensuring that all Nigerians with a bank account use a unique Bank Verification Number (BVN). These initiatives, coupled with our nationwide National Identification Number (NIN) exercise, reinforce our efforts to tackle corruption and fraud. We believe that this should give investors a lot of comforts.”

    Buhari attributed growing social unrest to inequalities and unfair policies that exclude the majority from opportunities for participation, admonishing world leaders and global investors to prioritise inclusive and humane policies.

    He said, “By so doing, it will go a long way in reenergizing the global economy in a post-COVID-19 era.

    “Nigeria is Africa’s largest economy and most populous nation. Our economic reforms which focus on “humane” investments are ideal for investors looking to have profitable returns while positively impacting the citizenry.”