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Zenith, UBA, First Bank lead in transfers to TSA

By on November 18, 2015

With the sum of N513.425 billion of federal government’s funds paid into the treasury single account (TSA) as at October 27 by Zenith Bank Plc, United Bank for Africa (UBA) Plc and First Bank of Nigeria Limited (FirstBank), the three banks have made the most payments into the government’s treasury relative to their peers.

A schedule of TSA payments obtained exclusively by THISDAY showed that by October 27, Zenith Bank, which had transferred a total of N241.328 billion, made the highest remittance of the federal government’s funds to the TSA domiciled with the Central Bank of Nigeria (CBN).

Zenith Bank was closely followed respectively by UBA with a total of N150.082 billion and FirstBank with N122.016 billion.

In all, a total of N836.714 billion was paid into the TSA by 20 banks as at October 27. However, the amount paid in by Zenith Bank, UBA and FirstBank represented 61 per cent of the entire transfers for all the banks.

The transfers attract a one per cent transaction fee, which has since become the subject of controversy. The commission is shared between SystemSpecs, the firm that created the Remita software – the payment platform used for the transfers – the CBN, and the banks.  SystemSpecs gets 50 per cent of the commission, the CBN – 10 per cent while the commercial banks get 40 per cent.

The document also revealed that while Access Bank Plc transferred a total of N39.34 billion to the TSA, Diamond Bank remitted N27,28 billion, Ecobank Nigeria – N15.513 billion, Fidelity Bank Plc – N49.962 billion, First City Monument Bank Limited – N39.152 billion; Guaranty Trust Bank – N8.781 billion; Heritage Bank Limited – N20.480 billion and Jaiz Bank – N22.956 million.

The amounts transferred by other commercial banks also included Mainstreet Bank (now Skye Bank) – N31.598 million, Skye Bank – N39.628 billion, Standard Chartered Bank – N100.68 million, Stanbic IBTC – N5.75 billion, Sterling Bank Plc – N31.35 billion, Union Bank of Nigeria – N14.94 billion, Unity Bank – N2.46 billion and Wema Bank – N26.68 billion.

In addition, the total fees refund, being the one per cent commission charged on the transfers by the banks, CBN and SystemSpecs, following the presidential directive was N7.63 billion.

A breakdown of the refund showed that SystemSpecs refunded N3.812 billion, CBN – 760.960 million while the 20 banks refunded N3.053 billion.

 

[ThisDay]

One Comment

  1. kanayomadu

    November 18, 2015 at 7:52 pm

    The CBN should have been smart to out-right buy -out the software from Systems Spec or incorporate the company into the CBN network and use its talent pool to further enhance CBN operations. If the price is right any company can be bought.