Don't Miss


Home   >   Business   >   Industries   >   Banking   >   CBN to sanction banks for non-compliance with TSA deadline

CBN to sanction banks for non-compliance with TSA deadline

By on September 10, 2015

The Central Bank of Nigeria (CBN) on Tuesday warned that commercial banks that fail to comply with the September 15 deadline for compliance with remittance of federal government revenue to the treasury single account (TSA) will face severe sanctions.

The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, gave the warning in a letter addressed to all banks. A copy of the letter was posted on the central bank’s website.

The TSA is a unified structure of government bank accounts that gives a consolidated view of government cash resources whereby all funds belonging to the federal government are domiciled in one account with the central bank, with payments and collections into the account done via electronic means.

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.

President Muhammadu Buhari last Monday set a deadline of September 15 for full compliance with his directive that all revenue due to the federal government or any of its agencies must be paid into the TSA or designated accounts maintained and operated in the CBN, except otherwise expressly approved.

In addition to federal government ministries,  departments and agencies (MDAs) such as the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Nigerian Ports Authority (NPA), Nigerian Communications Commission (NCC), Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Deposit Insurance Corporation (NDIC), Nigeria Customs Service (NCS), Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR), among many MDAs, others, are affected by the directive.

To this end, the central bank stated in the letter to the banks that: “The Federal Government of Nigeria recently gave a deadline of September 15, 2015, for all balances/receipts due to the government or its agencies to be paid into the TSA maintained with the CBN.

“Banks are therefore directed to ensure that all such funds are remitted in line with the directive on or before the given deadline. 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 September 15, 2015.”

 

[ThisDay]