Did anyone ever sit down and ask a pertinent question why GEJ administration that proposed TSA never implement it? There must be a reason to bring up the idea and wait for such a long time for the implementation.. TSA was delayed because GEJ administration felt full implementation would cripple the banking sector which was right. Buhari administration should have implement it phase so as to avoid the shock presently faced by most banks.

TSA nuclear bomb.

The fallout has began.

One bank down, many more to go.

https://www.nairaland.com/3205466/cbn-sacks-skye-banks-management

plaetton:
TSA nuclear bomb.

The fallout has began.

One bank down, many more to go.

https://www.nairaland.com/3205466/cbn-sacks-skye-banks-management

skye bank is not having problems because of TSA. The problem of skye bank stems from insider loan abuse, that is why the entire BOARD HAD TO RESIGN.

I KNOW BECAUSE I WORK WITH SKYE.

There has been so many argument concerning the implementation of TSA. Some are for "for" and some for "against". Some has argued that the timing was wrong and some the time was right. Couple of days back, an elderly man with grey was on a national TV criticizing the government and they not done anything in last one year. When asked by one of the presenters what was his opinion in the implementation of TSA as way to checkmate leakages and corruption. He turn around to say, that the timing for implementing the TSA was wrong.
I then myself and other around me, if TSA will block leakages and corruption, are there better time to fight corruption? Everyone around was confused and short of word. I beg for response. One of my friend was bold enough to say the time to start in now.
Secondly, as a nation how many account is Nigeria allowed by the constitution to have. One or Many?

Please, I beg for knowledge.

tuale4u:

Op what you failed to understand is that even in modern medicine, during surgery anesthesia is used. This result to partial or total body numbness (temporal death). At the end of the surgery, and after few days or week of recovery, the person become more healthy. don't 4get anaesthesia have so many side effect too such as Nausea and vomiting,Cognitive dysfunction ,Hematoma, Nerve damage etc.

Also during this period, the person is given a lot of bitter pill and painful injection. Which in d beginning appear like increasing the persons sorrow. The question is this? A sick person is already in pain. why give him bitter pill and painful injection? is that not like increasing the misery of the person? From the OP way of thinking, modern medicine and medical doctors are stupid to be increasing someones pain who is already in pain!!!!!

Many people like the OP live in a world of delusion and fantansy. A world of pleasure without pain, wealth without work, greatness without hardwork and action without reaction. Only baby or deluded soul will reason like that.

The reason black people are backward is because of thinking like that of the OP. When all that matters is Now now now. Blacks are never willing to take little pain for a better future. As far as people like OP is concern, why suffer now so dat the next generation will enjoy when he must have been death and rotten in the grave?? How does that "epp" him. In the voice of olamide who d tin epp!!!

We should understand that structural change comes with pain. TSA is a structural change. It will take sometime for the economy and society to adapt to the new system. It is pain for a better future.

My generation (those born in the 1980s) have always complain our father generations failed us. They looted the country dry. and we ended up being born into an underdeveloped society. Op I believe you are most likely in my generation too. My question to u is this? What kind of country do you want to leave for your children and grand children? Is it a country were you make d sacrifice today and your grand children enjoy? or a country where you enjoy and milk everything dry today and your grand children suffer? How you answer this questions is what differentiate western countries from our countries.

A clear example is the way western countries are willing to make a lot of sacrifice because of global warming. The major aim is to leave a planet that will be comfortable for their great great great great grand children? global warming is not a big problem of today but a disaster of tomorrow (like 100 years time)

Nka bu eziokwu. Meaning what you just said is true. I appreciate your style of writing. I hope other will read through and learn. Rather than raining insult on someone.

giantstrides:


Absolute trash, IPOD youth voodoo economics... If you were wise enough, you would have observed that the TSA saved the nation from excessive bleeding it was being subjected to.

IPOD yout crying more than the Ijaws, all in a bid to bring down who God has ordained. ignorantly they spew trash on daily basis. TSA is the best thing to happen to Govt finances, how many times in recent time have you heard that a consortium of banks is lending MTN, DANGOTE or NNPC joint ventures billions, all Govt money. the Banks should be creative to raise funds and not depend on Govt fund. Top civil servants and corrupt politicians don't like it as it has taken away the direct control these top Excos have over Govt funds hitherto placed in commercial Banks.may God continue to give PMB life.

amaechi1:
There has been so many argument concerning the implementation of TSA. Some are for "for" and some for "against". Some has argued that the timing was wrong and some the time was right. Couple of days back, an elderly man with grey was on a national TV criticizing the government and they not done anything in last one year. When asked by one of the presenters what was his opinion in the implementation of TSA as way to checkmate leakages and corruption. He turn around to say, that the timing for implementing the TSA was wrong.
I then myself and other around me, if TSA will block leakages and corruption, are there better time to fight corruption? Everyone around was confused and short of word. I beg for response. One of my friend was bold enough to say the time to start in now.
Secondly, as a nation how many account is Nigeria allowed by the constitution to have. One or Many?

Please, I beg for knowledge.

the federal government is not supposed to be spoon feeding banks, people are just criticizing for criticizing sake, the withdrawal of government funds will only diminish the money creation abilities of banks it wont kill it, there other windows the bank can access to create money. i am a banker and i know what our public finance guys do with our common wealth. no bank is going to collapse because of TSA.

nnofaith:
skye bank is not having problems because of TSA. The problem of skye bank stems from insider loan abuse, that is why the entire BOARD HAD TO RESIGN.

I KNOW BECAUSE I WORK WITH SKYE.

Fair enough.
But as a banker, you should know that all the major banks have bad, even fraudulent loans in their portfolios.

All banks are highly leveraged to varying degrees.
But it takes a catastrophic event like the TSA implementation, the sudden withdrawal of about 3% equivalence of the nation's GDP from the banking system, to set off a rolling cascade of banking crisis and failures.

Consider that in 2008, the US Treasury had to pump in the equivalence of about 4.5% of its GDP into the banking system to save both the entire US economy and entire world from total economic collapse.

Now, imagine doing the exact opposite in Nigeria, a monoproduct economy, a generator economy, already tethering on the brink.
Look at it that way, and see the utter foolishness of that TSA implementation.

plaetton:


Fair enough.
But as a banker, you should know that all the major banks have bad, even fraudulent loans in their portfolios.

All banks are highly leveraged to varying degrees.
But it takes a catastrophic event like the TSA implementation, the sudden withdrawal of about 3% equivalence of the nation's GDP from the banking system, to set off a rolling cascade of banking crisis and failures.

Consider that in 2008, the US Treasury had to pump in the equivalence of about 4.5% of its GDP into the banking system to save both the entire US economy and entire world from total economic collapse.

Now, imagine doing the exact opposite in Nigeria, a monoproduct economy, a generator economy, already tethering on the brink.
Look at it that way, and see the utter foolishness of that TSA implementation.

if it comes to that in nogeria, the nigerian govt wil do same, recall that Amcon bought over 3 trillion naira toxic debts in our banks a couple of years ago. Dont worry yourself about the banks , they will survive.

plaetton:


I opened this thread to attract intelligent, fact based analysis and debate free of the innuendos from intellectual toddlers.

Pls raise your hand if you are up to debating this all important national issue.

This debate is very very critical at this time , because , backtracking and restructuring of the TSA has the capability( with mathematical exactitude) to resuscitate the economic Flatline confronting us.

Boss, Vote ya boy nah.

Please.

ichommy:


Boss, Vote ya boy nah.

Please.

Where and how do I Vote?

plaetton:
BLOODLETTING was an ancient, pre-science method of treating common and chronic illnesses by letting out blood from different parts of the body.

Back then, in around the 2nd century BCE, diseases were thought to be caused by imbalances of the humors, of which the blood was the most important.

Also tied this was the widespread belief that evil supernatural spirits were imbedded in the humors, which in turn, was the primary cause of diseases.

As with most pre-science practices, bloodletting caused a lot more VISIBLE harm than the IMAGINARY benefits for which the practice was promoted.

For good example, the side effects of bloodletting were:

1. Accidentally cutting off major ARTERIES , which leads to excessive hemorrhage, cardiac arrest and in most cases, death.
2. Anaemia.
3. Lowered immune response due to depleted white blood cells.
4. Infections.
5. Etc, etc.

Now, fast forward to Nigeria 2016 , when I think of the newly implemented TSA, when I hear all the chest beating, the celebration of this act as one of the cardinal achievements of the Buhari Administration, I am also forced to think about the PRE-science act of bloodletting ,and the EERIE similarities it shares with the TSA implementation in terms of Intentions, Envisaged benefits, and the inevitable Catastrophic side effects.

To be continued..

Disaster is not only when you have bad leaders. Having followers, especially youths with backward thinking is more of calamity than having a bad leader. How will somebody in his rightful sense against all avenue to block leakage? This is a usual practice all over the world. It is the right things for any responsible government to do. A government that is not fully in control of inflow and outflow of its money is not a government.
How do you want to plan when you don't even know what you have and what you don't have? One of the greatest problem we are facing as a country today is having many "educated illiterates" who suddenly become public commentators.

nnofaith:
the federal government is not supposed to be spoon feeding banks, people are just criticizing for criticizing sake, the withdrawal of government funds will only diminish the money creation abilities of banks it wont kill it, there other windows the bank can access to create money. i am a banker and i know what our public finance guys do with our common wealth. no bank is going to collapse because of TSA.

If you greatly diminish the money/credit- creating abilities if banks in a generator economy such as we have, then you have Nuked the entire economy.
Daahhhh!!
That's my point.

Which slowpoke drains the banking system of credit - creating abilities at a time of economic recession, when
every major economy, economies more robust and diversified that ours, are doing the exact opposite by pumping as much liquidity as possible into the economy via the banking system?

plaetton:

If you greatly diminish the money/credit- creating abilities if banks in a generator economy such as we have, then you have Nuked the entire economy.
Daahhhh!!
That's my point.

Which slowpoke drains the banking system of credit - creating abilities at a time of economic recession, when
every major economy, economies more robust and diversified that ours, are doing the exact opposite by pumping as much liquidity as possible into the economy via the banking system?

...its just confusing Bro. ..to converge all monies at the TSA or pump money into the banks to cushion the economic situation and job losses...

plaetton:

If you greatly diminish the money/credit- creating abilities if banks in a generator economy such as we have, then you have Nuked the entire economy.
Daahhhh!!
That's my point.
Which slowpoke drains the banking system of credit - creating abilities at a time of economic recession, when
every major economy, economies more robust and diversified that ours, are doing the exact opposite by pumping as much liquidity as possible into the economy via the banking system?

Give it rest, guy. You've been decisively TKO'ed on virtually every wobbly point you tried to raise. Time to quit.

But if you're particularly desperate to haul critical darts at PMB' govt, there are far more tenable and contentious issues to pick from - lopsided appointments, selective anti-corruption drive, economy, etc. But TSA is NOT one of them. Its one of the best decisions taken.

At the risk of repeating what others have said, those people wailing (permit the word) most likely benefited from the largess that came with easy FG money in their vaults.

BTW, I'm not aware of any bank complaining of liquidity issues. Heck, I'm inundated with mails from banks asking me to come take a loan from them. Where is the money coming from?

I agree FG should spend more at this critical time, but putting the money in coffers of commercial banks is not the solution, simply because those monies are usually beyond the reach of average bizman, no thanks to their ulcer-inducing lending rates.

LFJ:


Disaster is not only when you have bad leaders. Having followers, especially youths with backward thinking is more of calamity than having a bad leader. How will somebody in his rightful sense against all avenue to block leakage? This is a usual practice all over the world. It is the right things for any responsible government to do. A government that is not fully in control of inflow and outflow of its money is not a government.
How do you want to plan when you don't even know what you have and what you don't have? One of the greatest problem we are facing as a country today is having many "educated illiterates" who suddenly become public commentators.

The real disaster is when you read something, fail to grasp the full thrust of the argument, and then attempt to repudiate the argument from a very narrow perspective.

No one disputes that the government and it's agencies need to keep the track of incoming and outgoing incomes.
No one disputes the need to streamline and synchronize all government accounts.
No one disputes that the government needed a single Treasury account or something similar if it helps stem corruption and abuse.

The point, which eluded you in your haste, is that a responsible government, a responsible leadership, does an impact assessment before embarking on major and potentially destabilising financial and monetary policy.

Keeping track of government accounts in REAL TIME is not rocket science. Any armature programmer can write software for that.

The issue here is about the sudden withdrawal of N3 trillion, about 4-5% of our GDP from the banking system.
From an economic point of view, this is not only gross lunacy, but actually very very Stuupid, with a capital S.

The bank of Japan , the ECB, the US Federal Reserve , etc, have desperately been throwing liquidity into their banking systems almost every quarter since 2008, just to rekindle and eke out some economic growth.

In 2008, the US Treasury had to inject the equivalence of 5% of their GDP into the banking system in order to prevent a catastrophic end of the entire global financial system and economy.

With that in mind, just imagine the government doing the exact opposite here in Nigeria, by forcefully removing the equivalence of 4-5% of Nigeria's GDP from the banking system , and at the very worst time possible, during a period of economic contraction .

Do you see my point at all ?
Can you see the type of micro and macro economic havoc being created here?
Can you not feel the chilling effects already?
Can we, the Nigerian people not feel the already Impending economic nuclear winter that is encroaching upon us ?

Economic common sense vs political bravado and expediency.

Good leadership entails taking carefully measured steps , not bravado.

Izonpikin:
...its just confusing Bro. ..to converge all monies at the TSA or pump money into the banks to cushion the economic situation and job losses...

How exactly does pumping money into banks "cushion the economic situation?"

Is it the 2.5% interest you get on deposits?

Or the 25% interest rate for loan repayment?.

I laff in Izon.

plendil:


Give it rest, guy. You've been decisively TKO'ed on virtually every wobbly point you tried to raise. Time to quit.

But if you're particularly desperate to haul critical darts at PMB' govt, there are far more tenable and contentious issues to pick from - lopsided

The point being made is that it should have been done in phases.
Many Nigerians would not have lost their jobs. The country would have come into full implementation with less hurt.
Although you know you have to move unto something more solid, you don't transit from milk to biscuit bones when trying to move unto more solid foods for your kid.

plaetton:


The real disaster is when you read something, fail to grasp the full thrust of the argument, and then attempt to repudiate the argument from a very narrow perspective.

No one disputes that the government and it's agencies need to keep the track of incoming and outgoing incomes.
No one disputes the need to streamline and synchronize all government accounts.
No one disputes that the government needed a single Treasury account or something similar if it helps stem corruption and abuse.

The point, which eluded you in your haste, is that a responsible government, a responsible leadership, does an impact assessment before embarking on major and potentially destabilising financial and monetary policy.

Keeping track of government accounts in REAL TIME is not rocket science. Any armature programmer can write software for that.

The issue here is about the sudden withdrawal of N3 trillion, about 4-5% of our GDP from the banking system.
From an economic point of view, this is not only gross lunacy, but actually very very Stuupid, with a capital S.

The bank of Japan , the ECB, the US Federal Reserve , etc, have desperately been throwing liquidity into their banking systems almost every quarter since 2008, just to rekindle and eke out some economic growth.

In 2008, the US Treasury had to inject the equivalence of 5% of their GDP into the banking system in order to prevent a catastrophic end of the entire global financial system and economy.

With that in mind, just imagine the government doing the exact opposite here in Nigeria, by forcefully removing the equivalence of 4-5% of Nigeria's GDP from the banking system , and at the very worst time possible, during a period of economic contraction .

Do you see my point at all ?
Can you see the type of micro and macro economic havoc being created here?
Can you not feel the chilling effects already?
Can we, the Nigerian people not feel the already Impending economic nuclear winter that is encroaching upon us ?

Economic common sense vs political bravado and expediency.

Good leadership entails taking carefully measured steps , not bravado.

Apart from the political criminals, people of your type who criticize all activities of government, even those you don’t have simple understanding are the greatest problem of Nigeria. Your argument is laced with ignorance.

Nigeria is not the first country to introduce TSA. Many countries have implemented TSA as a means of ensuring effective controls over government funds, and most importantly to eliminate idle funds from commercial banks. Because of sentiments and lack of understanding, what you see is N3 trillions withdrew from commercial banks, but you never asked yourself what were these funds doing with these commercial banks, for what purpose, and what benefits? These are idle government funds known only to political criminals and their allied in the banking industry to benefit no other people other than themselves.

The current economic issue has no bearing with TSA.

Was the government right by implementing TSA? The answer is YES because it:
• Allows complete and timely information on government cash resources.
• Improves appropriation control.
• Improves operational control during budget execution.
• Enables efficient cash management.
• Reduces bank fees and transaction costs.
• Facilitates efficient payment mechanisms.
• Improves bank reconciliation and quality of fiscal data.
• Lowers liquidity reserve needs.

Was it done in the right time? There wouldn’t have been a better time. What else are you waiting for as a responsible government when a fundamental lapse is detected within the system? You want us to wait more so that the enemies of our national progress can destroy what is left of our future.

In summary, the implementation of TSA is a wise decision, very timely, and perfectly in line with fundamental economic principle.


Economics has basic principles. Lacking in understanding of these principles will always make you look like a fool each time you open your mouth to talk. Between 2008 and 2010 was a period of recession in the United State. The US Gross Domestic Product was contracted by 5.1%. That was the worst Recession in the history of United State. The 5% the government of United State injected was one of the antidotes necessary to cure the virus called “recession”. All responsible governments already have antidote for each stages of economic cycle either through monetary or fiscal policies.

What many of your type don’t understand is that, for many years, we don’t have economy. There is no monetary or fiscal policy that can solve our current economy problem. Monetary and fiscal policies are to solve expected economic problem arising from economic cycle; they are not designed to solve a problem arising from non-existing economy.

Yes, it is the truth that we are in serious economic crises. It is true that Nigerians are in pains and suffering is becoming unbearable. But, this should not be an excuse to condemn what is generally accepted norm for a responsible government.

plendil:


How exactly does pumping money into banks "cushion the economic situation?"

Is it the 2.5% interest you get on deposits?

Or the 25% interest rate for loan repayment?.

I laff in Izon.

laugh o my brother...you know how all these economic/banking models work. ..trail and error...never absolute...

It was not Buhari that "naked" the economy, it was the state1999 constitution as amended.

Section 80 (1) of the 1999 Constitution as amended states ;
“All revenues, or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation”;

So pour all your venom at the national assembly and not Buhari for obeying the constitution.

@ nno faith are u really a banker or even talk of working for Skye bank . Do u recall the effect of 4 billion fine imposed on the bank cos of not rendering NNPC funds back to TSA.
Can u be able to calculate the ripple effects of that debit of 4b or the float attached to the NNPC fund to any bank.
U left what is being discusses and swerved to another point entirely.

My friend Wirinet and LFJ, you guys are hung up on the technical arguments for the TSA.

Let me repeat, a government having a single Treasury account or whatever you want to call it is , and will always be a prudent idea.
I am not arguing for the pros and cons of having one.

I am arguing against the folly of draining the oil from an economic engine without any impact assessment or completely ignoring one.

Even while trying to build a solid structure or dismantling a redundant structure, good leadership demands an environmental impact assessment.
The imaginary or envisaged benefits has to balance or outweigh the disruptive and destructive potential to the immediate environment.

In this regard, the TSA implementation was a nuclear bomb to the banking and financial environment.
Those that initiated it , but later put it on hold were the wiser.

Again, as a rebuttal to your arguments, the US in 2008, could have, according to the dictates of the free market system and the Constitution, allowed the banks to fail and have a complete reset of the economic system, .but they prevailled to save the system because of the cascading catastrophic implosions that would have ensued.

There could have been a hundred ways of implementing the TSA, or it's intended goals, without having to nuke the entire system of which our economy rests.

The way the TSA was implemented says much about the the problem of leadership in Nigeria,..where state policies tend to be punitive rather ameliorative.

plaetton:

If you greatly diminish the money/credit- creating abilities if banks in a generator economy such as we have, then you have Nuked the entire economy.
Daahhhh!!
That's my point.

Which slowpoke drains the banking system of credit - creating abilities at a time of economic recession, when
every major economy, economies more robust and diversified that ours, are doing the exact opposite by pumping as much liquidity as possible into the economy via the banking system?

All this while that the government fund has been in the banking system, has the country developed? you talk as if there are no other windows open to the banks to create money. what you need to get out of recession is to spend on capital projects to reflate the economy, this has nothing to do with the TSA. If you know what people in government do with these funds when they were with commercial banks you will appreciate this policy.

N

plaetton:
My friend Wirinet and LFJ, you guys are hung up on the technical arguments for the TSA.

Let me repeat, a government having a single Treasury account or whatever you want to call it is , and will always be a prudent idea.
I am not arguing for the pros and cons of having one.

I am arguing against the folly of draining the oil from an economic engine without any impact assessment or completely ignoring one.

Even while trying to build a solid structure or dismantling a redundant structure, good leadership demands an environmental impact assessment.
The imaginary or envisaged benefits has to balance or outweigh the disruptive and destructive potential to the immediate environment.

In this regard, the TSA implementation was a nuclear bomb to the banking and financial environment.
Those that initiated it , but later put it on hold were the wiser.

Again, as a rebuttal to your arguments, the US in 2008, could have, according to the dictates of the free market system and the Constitution, allowed the banks to fail and have a complete reset of the economic system, .but they prevailled to save the system because of the cascading catastrophic implosions that would have ensued.

There could have been a hundred ways of implementing the TSA, or it's intended goals, without having to nuke the entire system of which our economy rests.

The way the TSA was implemented says much about the the problem of leadership in Nigeria,..where state policies tend to be punitive rather ameliorative.

On this you are probably right. I identified liquidity crunch for the bankers as collateral of this TSA implementation but I felt the banks will get creative and actually strive to conduct there primary business which is to lend to businesses. But alas it didnt work out that way as the lending situation is now worse and credit is even worse, this in an economy that needs reflating.
So in that sense maybe the govt should ve considered a phased implementation, rather than full implementation. This might have given time for the sector to absorb and strategise for the shock.

vedaxcool:


The guy left anti religious fanaticism for tribalism based anti government extremism. Take him serious at your own peril.

I wonder what brought tribalism into this?

nnofaith:
if it comes to that in nogeria, the nigerian govt wil do same, recall that Amcon bought over 3 trillion naira toxic debts in our banks a couple of years ago. Dont worry yourself about the banks , they will survive.

If it comes to what?
What has it not come to?
The level of foolishness I see in Nigeria is way above human comprehension.

Holyman3:


If it comes to what?
What has it not come to?
The level of foolishness I see in Nigeria is way above human comprehension.

if it comes to the CBN bailing out banks they will, CBN just pumped a 100 billion into skye bank last week.

so what level of foolishness do you see in Nigeria?, you need to purge yourself of hate, it beclouds your sense of judgement. stop criticizing for criticizing sake, the Nigerian govt does not need to spoon feed banks, all the years that the govt funds have been in banks what has the economy really benefited from it, not talking of individuals, i mean what has the economy really benefited from it?. what is the sense in govt keeping trillions in banks only to issue out treasury bills(that it pays interest on) to mop up its own cash? what is the sense in govt MDAs having fixed deposits in commercial banks while we cant fund projects? do you know how that this deposits are operated for the benefits of the public finance directors and not the common wealth? YOU NEED TO GROW UP.

Keneking:


Nonsense write-up

Ekene, How Market?

MizMyColi:


Ekene, How Market?

kene go support this write up in his present status oo...

Hunger don restore sense to him head..

Wonderful write up by pleatton...

The effects are here with us..

Shame. So this guy even raised this topic. And as usual, many APC dunces tried to shut him up by calling him IPOB while praising Buhari.

Today the economy has crumbled and they're looking for a way to rope GEJ into it somehow.

Real shame

bayelsaowei:
kene go support this write up in his present status oo...

Hunger don restore sense to him head..

Wonderful write up by pleatton...

The effects are here with us..

The way his song changed overnight is surprising.