FG Exempts NNPC, PHCN, 11 Other MDAs From TSA | Independent Newspapers Limited
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FG Exempts NNPC, PHCN, 11 Other MDAs From TSA

Posted: Sep 21, 2015 at 9:26 pm   /   by   /   comments (0)

By Sola Alabadan, Lagos

The Office of the Accountant-General of the Federation has exempted 13 Ministries, Department and Agencies (MDAs) from the Treasury Single Account (TSA) as these MDAs, described as profit oriented government business entities, pay dividends to the Federal Government.

The exempted MDAs are: Nigeria National Petroleum Corporation, Power Holding Company of Nigeria, Bank of Industry, 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, Ajaokuta Steel Company Ltd, Urban Development Bank, Nigerian Export-Import Bank and Transcorp Hilton Hotel.

These exempted MDAs, described as profit oriented government business entities, are paying dividends to the Federal Government.

The validation for this information comes vide a circular from the AGF’s office to The Director, Central  Bank of Nigeria, Banking and  Payments System  Department, referenced FD/LP2015/C/ADC/20/1/ /DF dated September 14, 2015  and authored by M. K, Dikwa, for the Accountant- General of the Federation,  Federal Ministry of Finance,  Funds Department, Abuja.

The circular titled “Approval to Exempt Some MDAs In line With the E-Collection Mop-Up Exercise” reads in part “Approval is hereby granted  to your bank to exempt the Accounts of thirteen (13)  MDAs (Category 6) 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.

“Please note that in line with  the Presidential approval,  the following as it relates to  Nigeria National Petroleum  Corporation NNPC as listed  above (S/No.9) under  Category 4 should also  apply:

“That 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  Federation’s  investment in the 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.

“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.”

It would be recalled that President Muhammadu Buhari ordered MDAs to pay all government revenues, incomes and other receipts into a TSA with the Central Bank of Nigeria (CBN) on or before September 15 in compliance with Sections 80 and 162 of the 1999 Nigerian Constitution.

The TSA is a unified structure of government bank accounts enabling consolidation and optimal utilisation of government cash resources. It is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.