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Federal Government to exempt NNPC, others from TSA

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There were indications yesterday that the Federal Government may exempt Nigerian National Petroleum Corporation, NNPC, and several other agencies from the Treasury Single Account, TSA, policy.

It was learned that the decision to exempt the agencies from TSA was reached after a meeting of officials of the affected agencies with the Accountant-General of the Federation, Alhaji Ahmed Idris and Directors in his office.

Sources told Vanguard that President Muhammadu Buhari had been fully briefed by the AGF on why some agencies had to be allowed to receive revenue into bank accounts other than the TSA.

It was disclosed that the agencies’ operations would be hampered if all their revenues were to be paid into the Central Bank of Nigeria, CBN, before they secure approvals through the bureaucracy to make withdrawals to finance such operations.

All affected agencies are commercial organizations.

Agencies affected

In addition to NNPC, it was learned that Bank of Industry, BOI, Federal Mortgage Bank, Bank of Agriculture, Urban Development Bank, Nigeria Export Import Bank, Nigeria Independent Power Project, NIPP, Galaxy Backbone and Nigeria Railways were equally exempted.

President Buhari’s administration has been under tremendous pressure over the TSA.

Banks fear that it would adversely affect their operations should all Federal Government funds be pooled into the apex bank.

The quasi-commercial entities also mounted pressure on government as they argued that the TSA would not allow for the smooth operations of their organizations.

As learned, when the guidelines are announced by the AGF, there could be a long list of many departments and agencies of government that would be exempted from the policy.

However, the AGF had repeatedly said that there would be no going back on the implementation of the policy.

He told journalists last weekend that the detailed guidelines would be announced within a short time.

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