LAGOS — Indications emerged weekend,
that the Single Treasury Account, TSA,
may be grounded, following the Central
Bank of Nigeria, CBN, order suspending
payment of fees and charges to parties
operating the system.
Vanguard learned that as a result of
CBN’s, recent directive, banks and other
stakeholders operating the system may
abandon the project in protest over the
suspension of their one per cent agreed
fees and charges. Stakeholders have been
directed to refund fees and charges they
collected as a result of the operation of
the TSA.
The CBN had caused a letter dated
October 27, 2015 to be written to
Systemspecs asking for refund of all
debits/charges into MDAs account.
The letter signed by Dipo Fatokun read in
part: “I have been directed to inform you
that you should refund all charges, 1%
cost of collection made into MDAs account
as a result of the implementation of the
TSA. The total amount should be credited
into the account – FGN Revenue e-
Collection Pool Account at the Central
Bank of Nigeria Account No
0020054161043.
“Since the cost of collection must have
been shared by all the stakeholders, you
are hereby required to also provide a
schedule of the total amount collected
and the portion that was shared to each
of the three participants.
The schedule should be prepared on
month by month basis, from the
commencement of the TSA
implementation in March, 2015, to date.
We will recover the share to CBN and
DMBs. Please note that you are required
to comply with the above directive, latest
by Wednesday October 28, 2015”.
N836.721 billion in TSA
Documents sighted by Vanguard indicate
that a total of N836.721 billion has been
the inflow into the federal government
coffer through the Single Treasury
Account for which a fee of N7.628 billion
was charged by both the banks and the
facilitator of the TSA project,
SystemSpecs. From documents sighted by
Vanguard, the CBN is asking the banks to
refund N3.053 billion into government
treasury while the Central Bank of Nigeria
is to refund the sum of N760 million.
Systemspecs is also requested to refund
N3.812 billion they collected as fees and
charges.
According to the official figures sighted by
Vanguard, as at September 15, 2015,
N152. 225 billion stood as the cumulative
amount that was collected into the TSA
account while N797. 717million was the
fees due to Systemspecs. The figures also
showed that as at October 27, the sum of
N836.721 billion was the cumulative
collection into the TSA and a total fee of
N3.812 billion was due to Systemspecs.
Systemspecs reacts
Systemspecs in reaction to the CBN letter
wrote to the CBN Governor on October
28 saying: “Let me, however, thank you
sir, for your call of Friday, October 23,
2015 in which you ordered that
Systemspecs should return all charges
earned on the use of our Remita
Collection platform. This was followed by
your letter of October 27 delivered today.
We have opted to obey your instructions
for the following reasons: We defer to
the high office of the Governor of the
Central Bank. We have invested the last
four years to prepare for the takeoff of
the TSA project and would do all within
our power to bring the project to full
term despite this demoralising setback for
us. We understand very well the strategic
importance of the TSA project in the life
of this Administration and would not want
any avoidable distractions to becloud the
bigger potentials of this project for our
country.
“Having returned the money sir, please
permit me to explain why you should
return this money to us. You may want to
recall Sir, that before Remita was engaged
to implement the TSA project in 2011,
CBN had written to Office of the
Accountant General of the Federation,
OAGF, that the project was not feasible
for at least another two years.
The initial thinking then was to use the
RTGS to support TSA transactions before
it was observed that the system is not
built for retail and high volume
transactions. When we signified our
intention to provide a solution for TSA, we
were told that Nigeria Inter-bank
Settlement System, NIBSS, had also
shown interest and the decision of which
platform to use was left to a joint
evaluation committee comprising of CBN,
OAGF and external Consultants. Three
times, we and N1BSS made competitive
presentations to the joint evaluation
committee. It was clear to the panel that
the wholly Nigerian developed Remita
effectively addressed all the
requirements expected by OAGF and its
external consultants to support TSA e-
payment and e-collection of government
receipts.
“Upon engagement, our team worked
tirelessly with CBN officials to make the
solution ready within a very strict
timeline in order to meet the planned
January 2012 launch date of TSA. It may
further interest you to know sir, that in
January 2012 when the foreign developed
Government Integrated Financial
Management Information System,
GIFMIS, platform was not ready as
scheduled, we were called upon by CBN
management to deploy Remita directly to
108 Pilot MDAs in order to ensure
commencement of TSA as planned.
“Accordingly Remita was the platform that
provided end- to-end solution between
January and April 2012 when GIFMIS
became ready for roll out to take care of
the accounting end. On the specific issue
of the Collection Fees of 1 % which has
become a topical issue and has assumed a
life of its own please permit me to recall
the context and some background
milestones.
Systemspecs in another letter to
President Muhammadu Buhari on the
November 6 seeking a resolution of the
matter said: “Our letter of June 26, 2015
and your kind response of August 31,
2015 on “Effective monitoring of
Government Funds – The Treasury Single
Account (TSA) Initiative” refers. We
sincerely appreciate the confidence
reposed in our wholly Nigerian software
innovation to provide the technology that
supports implementation of the TSA
Initiative. Our e-Payment and e-Col/
ection platform – REMITA, serves as the
Payment Gateway for TSA. The system
connects with the GIFMIS at the Office of
the Accountant General of the Federation,
Temenos T24 banking application at
Central Bank of Nigeria (CBN) in addition
to several systems provided by other
Payment Service Providers to ensure
seamless payment and collection of
Government receipts across Ministries,
Departments and Agencies (MDAs).
“Your Excellency, please find below some
of the areas we have used technology to
support the TSA scheme: We have
created a platform that empowers
Government to see at a glance the cash
position of all participating MDAs on the
TSA. Provision of the payment and
collection platform for 705 MDAs
currently enrolled on GIFMIS.
Direct deployment of REMITA. to 754
MDAs that are either partially or self -
funded to facilitate electronic payment
and collection.
*Connection to all Commercial Banks and
over 400 Micro Finance Banks in Nigeria.
*Empowerment of the citizenry to pay
Government from any Commercial Bank
branch, a growing number of micro
Finance Banks and Agents, use of internet
banking, mobile phones, debit and credit
cards.
*Direct Credit of Government accounts at
CBN typically within two (2) hours.
*Collection of over about N 1 trillion on
behalf of the Federal Government
between August to date, either as
transfers from Banks or direct receipts
from payers.
“Your Excellency, we are aware that you
must have heard series of reports around
the 1 % processing fees chargeable on e-
Collections of Government receipts. We
will like to provide some background on
these issues sir.
SystemSpecs was engaged to provide the
Payment Gateway for TSA in 2011. While
the payment leg of TSA commenced in
January 2012, the collection component
did not start as scheduled due to the
resistance from a number of quarters and
the absence of the political will to push
this through.
“In 2013, CBN and OAGF setup a multi-
stakeholder implementation committee
and
organised a Joint seminar with key
stakeholders including Banks to agree on
the formalities for commencement of e-
Collection. The Banks proposed a fee of
5% to compensate for the fact that they
would no longer keep float. The
implementation committee however
recommended 2.5% after negotiation
with the Banks. The then AGF later
approved 1 % as processing fee which
was in turn communicated to all the
stakeholders through CBN in December
2013. Subsequently, we executed a
contract with CBN and other stakeholders
involved on the provision of services to
support TSA.
“Based on the increased scope of the TSA
project following your directive in August
2015 for all MDAs to join the scheme, we
had highlighted the need for a
stakeholder meeting to discuss the TSA e-
Collection fees. This was communicated
to both CBN and OAGF.
“Instead of an invitation for a
stakeholders meeting as requested, we
received a directive
from the CBN Governor to refund ALL
TSA e-Collection fees earned to date and
to
suspend all charges on the platform.
SystemSpecs has since complied fully with
this directive and refunded all monies
earned to date to CBN. This we did in
good faith and without prejudice, to avoid
distractions that could becloud the bigger
potentials of the TSA project for our
country
“While we await clarification from OAGF/
CBN on the way forward, we have since
suspended all TSA e-Collection fees on
the platform. This means that none of the
TSA
collection parties/channels are earning
any fees for providing services to
Government.
“This position is however not sustainable
as the collection partner Banks are
threatening
to suspend FGN TSA collections. This
would clearly be playing into the hands of
those
who do not wish this initiative to succeed.
We understand the strategic importance
of the TSA project to this Administration
and the country at large.
We have demonstrated good faith and
continued commitment to the project in
the last four years to deliver on our
mandate. We will continue to do all
within our power to bring the project to
full term.
“Your Excellency, we would appreciate
your kind and urgent intervention to
ensure a speedy resolution of this matter
before the Banks stop collections.
Our Prayers
“In line with the subsisting contract and
your assured commitment to the rule of
law, we humbly request sir, that the fees
earned by ourselves and the Banks to
date be returned to us and our partner
Banks. In view of the enlarged scope and
the need to review the process, we
humbly request sir, that you direct a
meeting of relevant stakeholders be
conveyed to agree a sustainable pricing
model going forward. We solicit the
continued political support of the TSA
initiative by your Administration for this
initiative that offers far more to our
nation beyond the immediate take-off
issues”.
http://www.vanguardngr.com/2015/11/fgs-order-threatens-treasury-single-account/

Increasingly confused government!

Ok

K

Every leakages must be blocked.

There was a forum (End times)

chudionu58:
Increasingly confused government!

Blocking of leakages and loopholes of looting public funds by Politician is what you call Confusion?

How dense can our so called leaders of tomorrow be?

change they wanted, ..... change they have gotten....

chudionu58:
Increasingly confused government!

You are the one that is confused.Hatred and sentiment had blocked. Your sense of reasoning.TSA is still the best thing to happened.It is here to stay.This FG is different from the previous ones.

simplemach:
change they wanted, ..... change they have gotten....

I still prefer this change compared to previous administrations.No longer business as usual.So we expect it to happened.

Comedy nation. God bless the toy loving and woman wrapper Dino for raising alarm. Dino deserves national award for this.

disloman:
I still prefer this change compared to previous administrations.No longer business as usual.So we expect it to happened.

Why are you lowering standard for APC? APC should be judged by its campaign promises and not how poorly the previous administration did.

Crazy people! The stakeholders just trying to milk government dry.

The banks after hoarding government funds for years, trading and earning interest on same is also benefitting from the 1% charge for returning back government's fund? Isn't that robbery?

The Remitta people also charge the customers making payments to government, end up charging government just to credit their account at CBN?

CBN (a.k.a Government's banker) charges her owner for helping manage her funds? Or better still share in the loot?

I pray PMB orders a review of the contract purported to have been signed since 2011 according to revelations in the letter by Systems Spec to PMB on the issue meaning it was during GEJ's tenure all these things were conceived and they now rushed into implementing it.

Fayose as usual is blaming it on the APC ownership of the company. Will a PDP central government appoint an opposition owned company to manage her funds?

BTW.... the movement of funds from the accounts in the banks to TSA was not done manually as in through bullion vans but rather electronically I don't see how 1% should have been paid for same.

It's crazy and the clueless CBN Governor should be dropped ASAP. He's just clueless.

This stinks of blackmail and arm twisting.

The contractual agreement has to be reviewed because those charges do not seem fair to Nigerians. I would also advice the FG to start quietly incubating her own proprietary system using consultants because these shylock taxmasters will not give up.

These hawks know their importance to the system and will continue to blackmail at every turn unless they're made to know they're not indispensable.

Chubhie:
Why are you lowering standard for APC? APC should be judged by its campaign promises and not how poorly the previous administration did.

I'm not lowering the standard for APC.What I'm saying is with the little time APC had spent,is still better than the previous govt.You can't fight impunity and expect the fight to be smooth.TSA is here to stay.

Forget that thing. The issue only cropped up because of the delay in spreading the loot by the stakeholders due to the delay in getting the ministers in place. I'm sure they all kept the loot untouched until coast clear Systems Spec sharp sharp release den own.... unheard of for a private firm

When coast clear and Senate dem all settled, 1% go enter 2% useless people

Chubhie:
Comedy nation. God bless the toy loving and woman wrapper Dino for raising alarm. Dino deserves national award for this.

FOLYKAZE:


Blocking of leakages and loopholes of looting public funds by Politician is what you call Confusion?

How dense can our so called leaders of tomorrow be?

Oh shut up! Noisy propagandist...Thought Jonathan never fought corruption? are you not acknowledging the fact that TSA is his brainchild?? Hmmm

bigtt76:
Forget that thing. The issue only cropped up because of the delay in spreading the loot by the stakeholders due to the delay in getting the ministers in place. I'm sure they all kept the loot untouched until coast clear Systems Spec sharp sharp release den own.... unheard of for a private firm

When coast clear and Senate dem all settled, 1% go enter 2% useless people

A life long paper chaser as Dino who has eyes for the blings of life will always go where his personal interests are serviced. But then, if SLS was hailed, Dino deserves national award.

Why do the so called business class cannot think out of the box than trying to milk government for money? Tommorrow they will invent one lie about how they started their scambarous business with N10, 000.00 and became billionaires! This TSA thing literally exposed how everybody both private and public sector depend on government "largess" to live a comfy life!

I agree with you but if you've been following the whole issue, you will come to realize that he's being used by other aggrieved parties who felt sidelined from the TSA runs being chopped alone by Systems Spec.

It's a lucrative venture no doubt that and many people were just angling for the government funds as its stress-free else it would never have been blown open.

Chubhie:
A life long paper chaser as Dino who has eyes for the blings of life will always go where his personal interests are serviced. But then, if SLS was hailed, Dino deserves national award.

chudionu58:
Oh shut up! Noisy propagandist...Thought Jonathan never fought corruption? are you not acknowledging the fact that TSA is his brainchild?? Hmmm

Yes, the policy was GEJ's, but did he ever implement it? He simply didn't have the will to do so.

disloman:
I'm not lowering the standard for APC.What I'm saying is with the little time APC had spent,is still better than the previous govt

This is a philosophical question on if the glass is half filled or half empty. I can argue that APC has failed woefully in the few months it has stayed with verifiable facts....... Like the pot belly of most men in the greatest shape of their lives and in terms of securing lives and properties. Boko's body count is there for you to examine.

only terrorist threaten, so buhari is one of em, 2nd in command to abubakar baghdadi but he handles illiterate sections

chudionu58:
Oh shut up! Noisy propagandist...Thought Jonathan never fought corruption? are you not acknowledging the fact that TSA is his brainchild?? Hmmm

Why

bigtt76:
I agree with you but if you've been following the whole issue, you will come to realize that he's being used by other aggrieved parties who felt sidelined from the TSA runs being chopped alone by Systems Spec.

It's a lucrative venture no doubt that and many people were just angling for the government funds as its stress-free else it would never have been blown open.

I guess we are on same page. Same way SLS blew the whistle cos it was personal and served the interests of his friends in the opposition. It is always What's In It For Them. Imagine SLS telling Diezani that it wasn't personal but National interest!

Chubhie:
A life long paper chaser as Dino who has eyes for the blings of life will always go where his personal interests are serviced. But then, if SLS was hailed, Dino deserves national award.

The NASS members are praying & fasting for the epic failure of the TSA...

They receive kickbacks from MDAs when they go to the appropriation committees to defend their budget.. TSA has effectively put a nail in that coffin...

They will fight it with every breath in them!!!

chudionu58:
Oh shut up! Noisy propagandist...Thought Jonathan never fought corruption? are you not acknowledging the fact that TSA is his brainchild?? Hmmm

Must you call me name? You cant do without displaying how gullible you are.

GEJ had six years but did not implement TSA. Praises go to who implement a task

modath:


The NASS members are praying & fasting for the epic failure of the TSA...

They receive kickbacks from MDAs when they go to the appropriation committees to defend their budget.. TSA has effectively put a nail in that coffin...

They will fight it with every breath in them!!!

True. I guess this was one of the prophetic methods GEJ prophesied about using technology to fight corruption that we all laughed at back then.

Chubhie:
This is a philosophical question on if the glass is half filled or half empty. I can argue that APC has failed woefully in the few months it has stayed with verifiable facts....... Like the pot belly of most men in the greatest shape of their lives and in terms of securing lives and properties. Boko's body count is there for you to examine.

State your facts and let's discuss.Thanks.

Chubhie:
True. I guess this was one of the prophetic methods GEJ prophesied about using technology to fight corruption that we all laughed at back then.

Let me give you an illustration;

When you keep mouthing "I will beat you oo" to an errant child & never back up your threat with action.

Will the child ever take your words serious or even respect YOU? ....

You love Hero, you won't see any wrong in his stance but Hero's fight was all on paper & in words, no action was taken...

Danladi Umar of CCT was recommended for removal by former AGF to hero in 2014, what actions were taken despite the other panelists refusing to sit with him because of the 10m bribery allegation..

Please leave Hero out of this, we've flogged his issue & it has become boring.. Thx.

This looks like coordinated exploitation by the stakeholders. 1% charges (though looking meager accumulates into billions ) on monies they have reaped from over a long time sounds preposterous. A review is necessary.

modath:


Let me give you an illustration;

When you keep mouthing "I will beat you oo" to an errant child & never back up your threat with action.

Will the child ever take your words serious or even respect YOU? ....

You love Hero, you won't see any wrong in his stance but Hero's fight was all on paper & in words, no action was taken...

Danladi Umar of CCT was recommended for removal by former AGF to hero in 2014, what actions were taken despite the other panelists refusing to sit with him because of the 10m bribery allegation..

Please leave Hero out of this, we've flogged his issue & it has become boring.. Thx.

Then you proceed to beat the child black and blue in an effort to prove who's Boss and force respect out of him.... Or let's examine a worst case scenario you kill him off in the process as an example that nobody ought to provoke you in this era with your military background.

Don't you think PMB has hurt our economy with his measures to prove who's Boss to looters? PMB is fighting with action and the state of the economy can testify to this.