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TSA: Software practitioners urge FG to treatment SystemSpecs better

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6 years ago

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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

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Finance

AISA Has Refunded The Fees Paid By Yahaya Bello To EFCC

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2 days ago

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April 27, 2024

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The Economic and Financial Crimes Commission (EFCC) says the American International School Abuja (AISA) has refunded the fees paid by the immediate past governor of Kogi state, Yahaya Bello, for his children attending the school.

In response to a letter addressed to the Lagos zonal commander of the EFCC, the school said $845,852 was paid in tuition “since the 7th of September 2021 to date”.

AISA said the sum to be refunded is $760,910 because it had deducted educational services already rendered.

“Please forward to us an official written request, with the authentic banking details of the EFCC, for the refund of the above-mentioned funds as previously indicated as part of your investigation into the alleged money laundering activities by the Bello family.

Since the 7th September 2021 to date, $845,852.84 (Eight Hundred and Forty-Five Thousand, Eight Hundred and Fifty Two US Dollars and eighty four cents) in tuition and other fees has been deposited into our Bank account.

We have calculated the net amount to be transferred and refunded to the State, after deducting the educational services rendered as $760,910.84. (Seven Hundred and Sixty Thousand, Nine Hundred and Ten US Dollars and Eighty Four cents).

No further additional fees are expected in respect of tuition as the students’ fees have now been settled until they graduate from ASIA.”

In a chat with The Cable, the spokesperson of the EFCC, Dele Oyewale, confirmed that the school has refunded the money.

‘’The money has been paid into public account,” Dele Oyewale was quoted as saying

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Finance

Godwin Emefiele Disobeyed Direction Of Law With Intent To Harm The Public, He Printed ₦684.5M Using ₦18.9B Says EFCC in fresh charge

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6 days ago

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April 23, 2024

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The Economic and Financial Crimes Commission has filed a fresh charge at the High Court of the Federal Capital Territory against the embattled former governor of the Central Bank of Nigeria, Godwin Emefiele.

EFCC in the charge accused Emefiele of approving the printing of N684,590,000 at the rate of N18.96 billion.

EFCC also alleged that Emefiele broke the law with intent to harm the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

EFCC’s top prosecutor, Rotimi Oyedepo, SAN revealed that Emefiele will be arraigned on a new four-count charge before Justice Hamza Muazu

Counts one to four of the charge, read,

“STATEMENT OF OFFENCE: Public Servant disobeying direction of law with intent to cause injury to the public contrary to and punishable under Section 123 of the Penal Code Law, Cap. 89 Laws of the Federation, 1990.

“PARTICULARS OF THE OFFENCE: That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of N375,520,000.00 pieces of colour swapped N1, 000, at the total cost of N11,052, 068,062 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

This and three other charges were stated against him. They read;

“COUNT 2: “That you, GODWIN IFEANYI EMEFIELE, between the 19th of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the Central Bank of Nigeria Act, 2007, by approving the printing of 172,000,000 pieces of colour swapped N500 (Five Hundred Naira) Notes, at the total cost of N4, 471,066,040 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.

“COUNT 3: “That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of 137,070,000 pieces of colour swapped N200 (Two Hundred Naira) Note, at the total cost of N3, 441, 005, 280 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

“COUNT 4: “That you, GODWIN IFEANYI EMEFIELE, on or about the 7th day of October 2020, in Abuja, within the jurisdiction of this Honorable Court, knowingly disobeyed the direction of Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended), by approving the withdrawal of the total sum of N124, 860, 227, 865.16 from the Consolidated Revenue Fund of the Federation in a manner not prescribed by the National Assembly, which conduct of yours caused injury to the public and you thereby committed an offence.”

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Finance

Immigration Office Place Ex Governor, Yahaya Bello On Watchlist While IG Of Police Withdraws All Police Officers Attached To Him

Published

1 week ago

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April 19, 2024

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The Inspector General of Police, Olukayode Egbetokun, has withdrawn all police officers attached to the embattled former Governor of Kogi State, Yahaya Bello.

The order for the withdrawal was contained in a police wireless message. The document with reference number:

“CB:4001/DOPS/PMF/FHQ/ABJ/VOL.48/ 34 reads in part;“IG has ordered the withdrawal of all policemen attached to His Excellency and former Executive Governor of Kogi State, Alhaji Yahaya Bello. Acknowledge compliance and treat with utmost importance.

Please, above, for your information and strict compliance.”

Meanwhile, the Nigerian Immigration Service has placed the former governor on its watchlist.

This comes after the Economic and Financial Crimes Commission on Thursday, April 18, declared him wanted in connection to an alleged case of money laundering to the tune of N80.2bn.

From EFCC

In a circular signed by an Assistant Comptroller of Immigration, DS Umar, for the Comptroller-General, Kemi Nandap, the NIS detailed the former governor’s name, nationality, and passport number.

From National Immigration Office

And read;

“I am directed to inform you that the above-named person has been placed on the watch list.

Suffice to mention that the subject is being prosecuted before the Federal High Court Abuja for conspiracy, breach of trust, and money laundering vide letter Ref; CR; 3000/EFCC/LS/EGCS.1/ TE/Vide/1/279 dated April 18, 2024.

If seen at any entry or exit point, he should be arrested and referred to the Director of Investigation or contact 08036226329/07039617304 for further action.” the circular reads in part.

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