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Nairaland Forum / Nairaland / General / Business / $20bn Idle In Few Customers’ Domiciliary Accounts – CBN (579 Views)
Cheques Can Now Be Paid Into Savings Accounts – CBN / No Deposit For New Accounts: CBN Gives Approval / $20billion Dollars Idle In Few Individual's Domiciliary Accounts-cbn (2) (3) (4)
$20bn Idle In Few Customers’ Domiciliary Accounts – CBN by simtosul: 7:45am On Mar 04, 2016 |
The Central Bank of Nigeria (CBN) yesterday said
about $20 billion is currently lying idle in the
domiciliary accounts of some individuals.
The CBN made the disclosure at an interactive
session organised by the Joint National Assembly
Committee on Appropriation with government
officials.
CBN deputy governor, Financial System and
Surveillance, Dr Joseph Nnanna, who blamed the
decline in the value of the naira on the actions of
few individuals in the country, said by the time
the 2016 budget is passed, those people involved
will have their fingers burnt.
LEADERSHIP Friday reports that Nigeria’s total
external reserves stand at only $27.82 billion, as
at March 2, 2016,less than $8 billion higher than
the amount lying idle in these individuals’
personal accounts.
Foreign exchange reserves in Nigeria decreased to
$27.800 billion in February 2016 from $28.200
billion in January of 2016, having declined from
an all-time high of $62.081 billion in September
of 2008.
According to Nnanna: “Naira problem is our own
making. Some individuals are speculating on the
dollars to the detriment of naira. Why should we
have individuals that have $20 billion in different
domiciliary accounts idle?
“Volatility in exchange will not continue after the
passage of 2016 budget.
“Those who speculate on naira will have their
fingers burnt by that time because we are going
to embark on aggressive liquidity mop-up to make
the naira stronger.”
In his remarks, Senator Danjuma Goje, who
chaired the session, insisted that the passage of
the 2016 budget will not exceed March 17 as
promised.
Goje also said the implementation of the N500
billion intervention fund contained in the 2016
budget proposal would not be feasible since there
were no clear implementation strategies.
He added that though explanations were given
about the implementation strategy, they were not
satisfactory.
He said: “There is no detailed, clear-cut structure
laid down for implementation of this project
because what we have in this budget is N300
billion Recurrent and N200 billion Capital.
“We had to push hard yesterday to get some
details, which are not convincing.
“For instance, the explanation we got is that
N5,000 will be given to one million Nigerians.
Who would choose the one million people? What
structures do you have in place to make sure that
you choose the right people?
“You want to give money – N5,000 – to about
one million market women or thereabout and, in
my place, we do not have many market women;
and how would you choose the market women to
represent all interests?
“We have not gotten clear explanations to these
numerous issues surrounding the implementation
of this money. Even the afternoon school feeding
contained in the budget is not feasible because
some students study under non-conducive
environment. Will feeding them enhance their
learning?”
Goje said while the National Assembly was in
support of the programme, implementing it in
2016 might not be feasible.
He suggested that the money be added to the
budgetary allocation for sectors like power,
transport and health, while those responsible
would map out better strategy against 2017.
He said: “We are all happy with the programme
and I am a party man to the core, but what needs
to be done needs to be done very well. I think
there is a need to do a greater work on
implementation; otherwise this money will go
down the drain.
“We support this programme. We want Mr
President to succeed. We want our party to
succeed. We want to continue to win this election
but we want the programme to be successful.
“So, Mr Minister, we want you to come up with
workable implementation strategy; otherwise
there are so many things that require attention in
this country. We would rather use this money to
solve our problems.
“Use this year to do very sound groundwork for
implementation so that the programmme can take
off next year.”
TSA Funds Hit N2.9trn – Finance Minister
Besides, the Minister of Finance, Mrs Kemi
Adeosun yesterday disclosed that accruals to the
Treasury Single Account had accumulated to
N2.9trillion, from N2.2trillion in February.
The minister who made the disclosure while
fielding questions along with the Minister of
Budget and National Planning, Mr Udoma Udo
Udoma, from the National Assembly Joint
Committee on Appropriations, however said the
total of the sum may not be used to fund the
proposed N6.08trillion budget because some part
of it will be go as operating cost for key revenue-
generating agencies of the federal government.
“The total volume of the TSA is now N2.9trillion,
but as the money comes, we cannot just mop it
up to finance the 2016 budget. Some of the
money coming from the NNPC and others into the
account, for example, may be used to fund some
of its projects”, she said.
Earlier the minister also told the lawmakers that
“the oil price decline is a blessing in disguise”, as,
according to her, it will spur creativity in
governance and allow government to focus on
harnessing resources from non-oil sectors.
On his part, Udoma disclosed to the Senate and
House of Representatives members of the Joint
Appropriations Committee that the Executive’s
intention was to allow private sector funding for
the mineral and agricultural sectors. The budget
proposal for the Ministry Solid Minerals is
N9billion, while that of the Agriculture Ministry is
N43billion.
“Government intends to provide enabling
environment for the agriculture and mineral
sectors to thrive. Solid minerals need brain work,
not billions of naira, and so for the agricultural
sector, so government wants the private sector to
drive these areas”, he said.
Udoma also told the committee that government
had already reduced the budget proposal for
salaries, travels and other non-capital spending
by 9%, and may reduce more, adding that it
wants to reach out to airlines to cut the cost of
flights for public officials.
“This is the most difficult budget that we have
had to deal with for a long time,” he said, just as
he acknowledged the prerogative of the National
Assembly in deciding how the final budget would
look like.
Opposition Mounts Against Senate’s Moves To
Terminate TSA
Crisis is gradually brewing in the Senate over its
resolution which, among other recommendations,
directed the Central Bank of Nigeria (CBN) to
terminate all contracts relating to the Treasury
Single Account (TSA).
It was gathered yesterday that Senate President
Bukola Saraki has been receiving series of
petitions accusing the Red Chamber of trying to
frustrate the TSA policy.
One of such petitions obtained by LEADERSHIP
Friday was that sent by the Coalition Against
Corrupt Leaders (CACOL) asking the Senate to
rescind its position without delay, even as it
warned that, if implemented as adopted, the
recommendations would be a deadly attack on
the federal government’s TSA project.
The petition signed by the executive chairman of
CACOL, Debo Adeniran, questioned the motive
behind the resolution of Senate, saying it
amounted to nothing but an attempt to kill the
TSA and reverse all the gains recorded within the
short time of its implementation.
The petitioner stated: “Could it then be safe to
conclude that there is a move within the Senate
to use the termination of the contract, which will
naturally frustrate the TSA project, still at its
infancy, as an excuse to exempt the Senate from
compliance with TSA to which President
MuhammaduBuhari has consistently pledged
commitment?
“Did the Senate consider possible implications of
forcing the CBN to immediately terminate the
contract? What measures, if any, has the Senate
proposed to manage the consequences on the
economy of immediate disruption of the already
settled nationwide TSA payment and revenue
collection processes?”
CACOL wondered how the about 900 MDAs
already operating on TSA would continue their
payment and revenue generation operations the
next morning after the CBN had been forced to
cancel the Remita contract.
It further queried: “What should happen to the
investment in infrastructure, processes and people
already put in place on account of the FGN TSA
by the 18 commercial banks, over 400 micro-
finance banks and other players in the electronic
financial ecosystem?
“How are the millions of Nigerians who now pay
for critical health services and students who pay
tuition and other fees through TSA supposed to
undertake such transactions the morning after the
CBN would have been railroaded to cancel the
Remita contract?
It is perplexing, to say the least, why contract
termination is the one and only call of the Senate
in a matter its own committee firmly established
as being one of mainly commercial terms as it
expressly stated in Section 6.1.4 of its report.
“What is rather in contention is the cost and
terms of engagement of vendors whose services
have been procured for the implementation of
TSA’s e-collections?”
CACOL also wondered why the Senate’s
recommendation is not a review of the
contractual commercial terms rather than an
outright termination of the TSA contract,
“considering that contractual agreements between
two or more entities typically become subject of
termination mainly due to under-performance.” www.leadership.ng/news/506270/20bn-idle-customers-domiciliary-accounts-cbn
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Re: $20bn Idle In Few Customers’ Domiciliary Accounts – CBN by Last2comment(m): 7:47am On Mar 04, 2016 |
What a money. |
Re: $20bn Idle In Few Customers’ Domiciliary Accounts – CBN by mekaboy(m): 7:52am On Mar 04, 2016 |
Soon this govt will start to deduct the 100 naira from your account if u don't withdraw for a week. 1 Like |
Re: $20bn Idle In Few Customers’ Domiciliary Accounts – CBN by bettercreature(m): 8:06am On Mar 04, 2016 |
And what is their business with the money? are these people stupid or they want to steal peoples money |
Re: $20bn Idle In Few Customers’ Domiciliary Accounts – CBN by Jethrolite(m): 9:03am On Mar 04, 2016 |
What is their business with people's money |
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