ednut1:
banks have been using d free monies for business. taking it out reduces thier profits. which will lead to mass sack and salary cuts

masties2:
I hope it wouldn't affect some banks liquidity o. I will not hear story on my 10kobo with the bank

iomoge2:
Pls I have a honest question.
Please no one should see it as a stoopid question

PLEASE WHERE WOULD THEY TAKE THE MONEY TO
WHERE WOULD THE MONEY BE SAVED?
WOULD THEY GIVE IT TO ONE BANK? Or open a special Bank for Government funds?

mrvitalis:
The fact that the Nigerian government can't generate 15trn every year still surprises me
.....south Africa with a GDP of $350bn generates close to $100bn and we with a GDP of around $500bn struggle to make $50bn in a year.. .. .
Corruption has eaten this country dry

helinues:

http://www.vanguardngr.com/2015/09/fgs-single-account-deadline-n2-6trn-govt-deposits-in-20000-bank-accounts-to-be-closed-this-week/

ribbit:
actually its under sanusi that most banks merged ... Do google search ..

lagbaja:


You have not presented any serious counter argument. Your curses means nothing.

To start with, liquidity crisis in Nigerian banks are self inflicted because in reality, they never really borrow as much as they collect from government to the private sector, they actually lend the funds back to the government through bonds and treasury bills. What they have to do to simply sell off their bonds to free up funds. It's only their bogus profitability that will be impacted.

According to the Debt Management Office of the FG, as at December 2014, the Federal government's domestic debt stood at 7.9 trillion Naira.
Comprising Of 60 government bond and 35% treasury bills. Majority of this bills were bought by Nigerian banks at the detriment of the private sector. If the federal government decides to take 2.6 trillion from the banks through implementation of the TSA, they will only be taking back a fraction over 7.9trillion naira of the bonds and treasury bills they (the banks) invested in.

Nigerians stands to benefit more from the Single treasury account.

1. Government bonds are sold at over 10% ( borrowing at 10% interest rate) , a ridiculous amount. The banks use government's money to buy the bonds. Now, the reverse will be the case. Banks will now borrow from government.

2. Banks will have no alternative high yield, low risk investment such as bonds and treasury bills to invest in, they will have no choice than to borrow to the private sector. Real banking will commence.

3. Interest rates will go down since government will now borrow less and at low interest rates. Banks will be forced to source funds internationally at low interest rates and borrow to the private sector equally at low interest rates.

4. The impact of the JP Morgan delisting of our bonds will not be felt so much as government will now access free interest funds from the TSA.

5. There will be transparency in all MDAs accounts. Corruption will be better curbed.

6. Interests paid on domestic debts by the FG will reduce and free up more funds for infrastructure development.

lagbaja:


You have not presented any serious counter argument. Your curses means nothing.

To start with, liquidity crisis in Nigerian banks are self inflicted because in reality, they never really borrow as much as they collect from government to the private sector, they actually lend the funds back to the government through bonds and treasury bills. What they have to do to simply sell off their bonds to free up funds. It's only their bogus profitability that will be impacted.

According to the Debt Management Office of the FG, as at December 2014, the Federal government's domestic debt stood at 7.9 trillion Naira.
Comprising Of 60 government bond and 35% treasury bills. Majority of this bills were bought by Nigerian banks at the detriment of the private sector. If the federal government decides to take 2.6 trillion from the banks through implementation of the TSA, they will only be taking back a fraction over 7.9trillion naira of the bonds and treasury bills they (the banks) invested in.

Nigerians stands to benefit more from the Single treasury account.

1. Government bonds are sold at over 10% ( borrowing at 10% interest rate) , a ridiculous amount. The banks use government's money to buy the bonds. Now, the reverse will be the case. Banks will now borrow from government.

2. Banks will have no alternative high yield, low risk investment such as bonds and treasury bills to invest in, they will have no choice than to borrow to the private sector. Real banking will commence.

3. Interest rates will go down since government will now borrow less and at low interest rates. Banks will be forced to source funds internationally at low interest rates and borrow to the private sector equally at low interest rates.

4. The impact of the JP Morgan delisting of our bonds will not be felt so much as government will now access free interest funds from the TSA.

5. There will be transparency in all MDAs accounts. Corruption will be better curbed.

6. Interests paid on domestic debts by the FG will reduce and free up more funds for infrastructure development.

rusher14:
Banks are not meant to be artificially dependent on government accounts for sustenance.

Most banks in Nigeria refuse to maintain the true ethos of banking. They are mostly in to round tripping of funds, money laundry, and fast schemes which are inimical to the growth of the people.

Truly, there would be a downsizing of the work force but it is important for the banks to begin to see themselves as crucial to the growth and development of the Nation.

They should begin to fund enterprise, housing and infrastructure. What they've enjoyed for years are artificial deposits that benefit only the bankers and Directors of these government agencies.

Retail Banking isn't even meant to be one of the choice professions of graduates who have studied everything from agronomy to zoology. From engineering to Meteorology.


The party had to end some time.

Music wasn't even right ab Initio.

mrvitalis:
The fact that the Nigerian government can't generate 15trn every year still surprises me
.....south Africa with a GDP of $350bn generates close to $100bn and we with a GDP of around $500bn struggle to make $50bn in a year.. .. .
Corruption has eaten this country dry

bushdoc9919:


South Africa also has something we have not got....a diversified economy, and a strict tax regime.

Over there, for example...they pay TV licensing fee....ie if you have television, you pay money to govt to get a licence for your tv.Try THAT in Nigeria.....there will be riots in the streets from Sokoto to Port Harcourt.

shizzy7:
They will take it to CBN OR do you want the money I can send it yo your account ooooooo

14:


Thats what happens when the government feeds you with wrong stats. Ask yourself why South africa is able to raise $120billion and Nigeria can only raise $23billion. You see these number dont add up.

4Play:


Lagbaja, why would governments borrow less and interest rates go down as a result of domestic banks lending less to the government? It is a rather glaring non-sequitur in your argument. The government borrows because it needs to make up the difference between its spending and its income. Reducing the pool of potential lenders to the government, as you acknowledge that Nigerian banks are a major lender to the government, would not reduce government bond yields but would increase it. Unless you are arguing that a major cause of our budget deficit is the lack of a TSA? I fail to see how that makes sense.

I would argue that the TSA is good in principle but it comes at a difficult time when the economy is weak and banks are facing currency risk in respect of their foreign denominated debt. It should have been phased in gradually or postponed to a more appropriate time

The argument that this will promote private sector lending does not wash with me. Reducing the total stock of deposits in the banking system would not necessarily increase private sector lending. I do not know of any example around the world where banks react to a shrinking of their deposit base by increasing private sector lending. In a perverse way, it may actually induce a higher proportional allocation of their loan portfolio to the government as the rising government bond yields, arising from lower demand for government bonds, proves a more enticing prospect.

The best way to curb this problem of government bonds "overcrowding" the debt market is for the government to reduce supply by borrowing less. This would require that it spend less and collect more tax. So long as those enticing government bond yields are on offer, banks will have no option but to shun private sector lending in favour of the safety of lending to the Federal Government.

refreshrate:


Unfortunately its the 'graduates' that are looking for jobs or at best earning next to nothing (why am i surprised considering their level of thought anyway) that seem to see this as a reasonable thing.

Its not only state govts, even the private companies will not be able to sustain overhead either and gbam, more sacks from that area as well.

And the americans just had to stop visa lottery in Nigeria now that i need it most. Should have listened to my ex girlfriend i swear

tefund:
Bros,calm down there is still hope 4 u,there is no paradise on earth even in America

refreshrate:


I haven't had electricity at all in 10days cos nepa cable fell on one girl in unilag. She was still alive when they brought her to the health centre. The stupid doctor refused to handle the emergency cos of ID card. Here's the irony unilag blames the electricity company not their incompetent doctor and as a result refuse power to be turned back on cos the supply goes through their school everyone around unilag area is left without electricity since the day of the incidence

Seriously where's the wisdom in this? Would such happen in a sane place?

ElFenomeno1:


SMh.... Shouldn't be happening at all.
What has happened has.... Though unfortunate, but must people now suffer because of that?
Both parties are at fault here... I mean Unilag and the power holding company
The primary aim of Doctors and Nurses should be to save lives...... Regardless of who it was, the doctor should have attempted to save her immediately.... Gross negligence and violation of practise code!
The power company...... Could be held responsible if it can be proven that the wire that fell was poorly installed or has not been maintained!
Conclusively, people shouldn't be suffering because two parties who are involved in a tragic accident are trading blame!

refreshrate:


You don't want to imagine how irritating this is. A girl was raped by her supposed guardian for admission he was hung out to dry.

This incompetent buffoon costs a girl her life because he didn't see ID card unilag decides to hold the whole neighborhood ransom like seriously at this point am I still supposed to give two spoons about the girl?

I've emptied the freezer cos of these nut jobs and I dare not restock

Burning fuel everyday and next month I'm certainly still going to get a bill for electricity

mrvitalis:
The fact that the Nigerian government can't generate 15trn every year still surprises me
.....south Africa with a GDP of $350bn generates close to $100bn and we with a GDP of around $500bn struggle to make $50bn in a year.. .. .
Corruption has eaten this country dry

jusRadical:
Such huge amount of money? I thought that they said that they treasury was empty. So where did the trillions come from?

Myself2:


Corruption and IGNORANCE
Half of the 117 people that liked this quoted post don't even understand what you said

saintkel:
Chop make I chop. Where is MISSNORA

MISSNORA:
busy dear... How r u