Finance
TSA: Software practitioners urge FG to treatment SystemSpecs better
Since the introduction of the Treasury Single Account (TSA) in September 2015, the Federal Government has saved over N128bn from charges imposed by banks for managing funds belonging to the Ministries, Departments and Agencies of the government.
But news filtering in shows that developers of the software, SystemSpecs, on which TSA runs, are not been treated fairly, even as the government is accused of not keeping to terms of agreement.
Vice President Osibanjo speaks hallowing of TSA
The Vice-President Yemi Osinbajo, while speaking at a recent Chartered Institute of Taxation of Nigeria (CITN) event, expressed delight over the contributions of TSA to the economy.
Findings at the Office of the Accountant-General of the Federation showed that before the scheme commenced, the government incurred about N4bn monthly to maintain its various accounts in banks.
The amount represents the various charges and account maintenance fees, which were hitherto imposed by the Deposit Money Banks for holding government funds.
Listen to the Vice President speak on the subject: “We have aggressively expanded the implementation of the Treasury Single Account and the Integrated Personnel Payroll Information System, both designed to ensure that public funds are more transparently managed and spent.
“The TSA’s unified system of bank accounts domiciled in the Central Bank of Nigeria has proven to be far more transparent and cost-effective than the old scenario in which government agencies maintained thousands of accounts across various commercial banks.
“Because of the TSA, the Federal Government realises monthly savings of at least N4bn, which would have gone on commercial bank charges.”
There are 32 months between September 2015 and April this year. And with monthly savings of N4bn, the total amount so far saved through the implementation of the scheme is N128bn.
Unfortunately, SystemSpecs, the company that developed Remita which powers funds collection into TSA, has not received its ‘loyalty’ from the Federal Government for over two years now, a report by TechEconomy.ng shows.
This is despite the fact that SystemSpecs pays mandated transaction fees to other stakeholders like card payment processors, whose charges are instant. For such transactions, government still receives its money in full because SystemSpecs tops up before sending into government coffers.
Senate probe
Recall that in 2015 the Senate had ordered its joint Committee on Finance, Banking and Other Financial Institutions and Public Accounts to probe the allegation that the e-collection agent, Remita, had been paid 25 billion, being the one per cent commission it charged for the transfer of N2.5 trillion of Federal Government funds to the TSA.
Though Remita is the electronic payment platform adopted for the TSA, banks, and other payment platforms are all part of the transaction value chain.
These include banks, debit or credit card processors, POS terminal providers, mobile wallet platform owners, switching platform owners, and payment gateway technology providers.
While there is indeed one per cent transaction fee charged on all inflows and outflows through the TSA, the money is shared among the payment electronic platforms, banks, CBN and SystemSpecs.
Transaction fees is a common feature of electronic payment transactions. An example is the N65 fee charged by banks when customers of other banks use their ATM.
Also, there is N54 transaction fee charged on all money transfers transactions in the banking industry including payment of bills such as DSTV subscriptions, flight tickets etc.
What was agreed
The one percent transaction fee charged for TSA transaction was based on agreement between the CBN, payment platforms and the Federal Government. This is reflected in a CBN circular to all banks dated December 17th, 2013, which stated, “A fee of 1% of funds collected is payable. This includes solution provider and participating bank fees”.
Further investigations also reveal that the fee sharing arrangement under the TSA states, “For E-payment: A tariff of N100 per million naira transaction, with 40 percent to CBN, and 60 percent to SystemSpecs.” “For Collections: A tariff of 1% of funds collected shall be charged for the government revenue collections, to be shared as follows: Platform Owner/SystemSpecs-50 percent; Collecting Agents/ Participating banks-40 percent; CBN-10 percent.
1% fee still lowest in industry
TechEconomy.ng inquiries show that the 1% TSA transaction fee is one of the lowest in the industry.
Also, when compared with the pre-TSA regime where government was earning 0% interest on its funds outside the CBN and paying about 15% on government borrowings in terms of bonds, the 1% TSA fee is a better bargain for the Federal Government.
SystemSpecs has not been given enough accolades
Meanwhile, the report gathered over the weekend that there are plans to arm-twist SystemSpecs to accept certain percentage far lesser than the agreement it signed with the Federal Government through the Central Bank of Nigeria (CBN).
The immediate Past President of the Institute of Software Practitioners of Nigeria (ISPON), Mr. James Emadoye, cautioned against such moves, adding that indigenous software practitioners have not received enough support from the government.
Emadoye said, “Government should be at the lead, and not only should they support the ICT industry, they should also intentionally support made-in-Nigeria software and discourage acts that undermine the growth and advancement of the sector.
“A member of ISPON, SystemSpecs, which is doing so well for Nigeria through TSA is not being celebrated or recognised. We heard they have not been paid.
“They are being squeezed out rather than being entrenched. In other climes, government would promote the Remita solution and position it as a net export and foreign currency earner”.
Efforts to reach officials of the CBN and the Company could not yield report as at press time.
Source: TechEconomy.ng
Finance
Flutterwave Activates American Express Payments for its Merchants in Nigeria
Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
Finance
NNPC Releases 2023 Audited Financial Statement
…Posts N3.3trn Net Profit, Declares N2.1trn Dividend
…Targets 2mbpd Crude Oil Production by December 2024
The NNPC Limited has released its 2023 Audited Financial Statement (AFS), declaring a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N700billion (28%) when compared to the 2022 profit of N2.548trillion.
In a world press conference held at the NNPC Towers in Abuja on Monday, the Chief Financial Officer of the Company, Mr. Umar Ajiya said the release of the AFS is a testament to the Company’s commitment to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.
Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.
Explaining that the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the Company was only taking care of the shortfall on PMS importation between it and the Federation.
Speaking earlier at the press conference, the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.
In her remarks at the briefing, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting 2million barrels per day crude oil production by the the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr. Dapo Segun appealed for understanding from Nigerians, saying that the the Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.
It would be recalled that in 2021, NNPC declared profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the Company’s inception, 46 years ago.
Finance
Banks To Now Charge 0.5% Cybersecurity Levy As Directed By CBN; Netizens React
The Central Bank of Nigeria (CBN) has directed deposit money banks in the country to start charging 0.5% cybersecurity levy on some transactions done by their customers.
The apex bank gave the directive in a circular dated May 6, 2024 and sent to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2) (a) of the Act, ‘a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule of the Act’, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” the circular partly read.
The apex bank said that the implementation of the levy would start two weeks from the date of the circular.
“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’. Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month,” the circular said
The apex bank added that this new levy will not be applied on transactions such as loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank.
Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments, among others.
This current implementation however is not sitting well with some netizens as they reacted to the new development.
Here were some of their reactions from X.
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