13 MDA’s Exempted from TSA
The Federal Government of Nigeria has announced its decision to exclude 13 MDA’s from the implementation of the Treasury Single Account.
The Treasury Single Account signifies a mopping up of government revenue from commercial banks directly to a singular government account.
However, the Presidency has explained that profit making agencies of the government have been exempted from the recent directive. The circular reads, “Approval is hereby granted to your bank (CBN) to exempt the Accounts of 13 MDAs (category six) as listed below the mop-up in line with the e-Collection Circular No. HCFSF/428/S.1/120 dated 7th August 2015 as these are profit-oriented government business entities that are to pay their dividends into the Treasury Single Accounts whenever they are declared.”
The affected agencies include; Nigeria National Petroleum Corporation (NNPC), Power Holding Company of Nigeria (PHCN), Bank of Industry (BoI), Nigeria Railway Corporation, Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta Power Holding Company/National Integrated Power Project, National Communication Satellite Limited, Galaxy Backbone Ltd and Ajaokuta Steel Company Ltd.
Others are Urban Development Bank, Nigerian Export – Import Bank and Transcorp Hilton Hotel