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Controversies Crippling FG’s Treasury Single Account Policy

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By Adepegba Rogers

Just few months after the Transparency International (TI) Corruption Index opened a can of worms on how Nigeria has sunk deeper into corruption, despite Muhammadu Buhari’s anti-corruption crusade, Ms. Priti Patel, former Secretary of State for International Development, United Kingdom, has made another debilitating remark. She has called on investors to be wary of investing in Nigeria, under Buhari, with a stern warning that they “should know of the corrosive effect of corruption, as well as the lack of transparency and associated difficulties of doing business in certain countries”.

The camp of President Buhari has not taken this statement lightly. We will all agree that Nigerians can say all they want about Nigeria, but when ugly remarks come from the international community, this government always runs into panic mode.  Defensively, the Senior Special Assistant to the President on Media and Publicity, Shehu Garba, urged investors to ignore Ms. Patel, saying her “wicked proposition is lacking in substance and devoid of merit in empirical evidence established by facts”. Garba, in a firefighting approach, trumpeted that the Buhari administration has put in place instruments that have “extraordinarily and unprecedentedly reduced corruption and corrupt practices.” One of these is the Treasury Single Account (TSA) , which has led to greater visibility and control of government funds by way of consolidating government resources in an account as against the past where such accounts are scattered. Bravo!

I personally was looking forward to a mention of the TSA. The Presidency has never failed to force the success of the TSA, alongside Whistle-blower policy and Bank Verification Number (BVN), down the throat of anyone who cares to listen. It is often brandished and chorused as one of this administration’s most remarkable achievement, since it came on board in 2015, so much so, it has become obvious that there is no other thing to brag about in terms of achievement.

Even though the policy was kickstarted by the immediate past president, Goodluck Jonathan, Buhari has completely owned it, following his directive for full implementation in September 2015. Every little occasion has become right to re-echo the gains of the TSA. And to be fair, in terms of cash management, Nigeria is in a much better position because of the TSA. It has saved Nigeria close to N9 trillion since it was enforced, and additionally, it saves the FG about N24 billion monthly. This is the cost previously incurred from running multiple accounts in the days before TSA. Also,  over 20,000 bank accounts have been closed.

Despite these gains, what Nigeria has in operation appears to be a caricature of the original policy defined by World Bank. The TSA policy in Nigeria has been bedevilled by major controversies which reflect poorly on the government and may threaten its sustainability, even though it is being hyped as a major success.

The TSA policy recommends ‘SINGLENESS’ in collection of all government revenues, but till date, several leakages occur due to FG’s poor stance on the policy and lack of ownership. Some of the most corruption-infested parastatals in the country, particularly, the Nigerian Immigration Service (NIS) and Nigerian National Petroleum Corporation (NNPC) are frequent offenders who still find ways to divert funds outside of the treasury. Others include FRSC, INEC, Police Force and some Federal Universities. It will shock most Nigerians to note that, years after the supposed full implementation by Buhari, Nigeria’s foreign earnings are still not channelled through the TSA.

With this massive diversion of revenue in several government agencies, it came as no surprise that ex-President Goodluck Jonathan who exclaimed that ‘stealing is not corruption’, has come out to boast that Nigeria was better off under him.

“It is important to note that despite the many sensational stories, dramatic arrests, seizures and accusations, many of them false, since I left office, the fact remains that Nigeria has not made any improvement on TI Corruption Perception Index since 2014.

“In fact, the 2017 CPI released in 2018 by TI places Nigeria as number 148, a retrogression in which the nation went 12 place backward. In other words, Nigeria is more corrupt in 2017 than it was when I handed over to Buhari administration in 2015. Some people may be misled with smoke and mirrors but the TI Corruption Perception Index relies on unsentimental facts and figures,” Jonathan submitted in his new book, My Transition Hour.

Another major controversy rocking the TSA is the outstanding debt and burden of transaction cost. When the TSA was fully adopted in 2015, the government agreed to pay SystemSpecs (the owners of Remita), banks and other payment providers. Under this arrangement, the government had a contractual obligation to pay a charge of 1% to the cap of N5,000. It was an excellent deal for the government as similar payment systems in Nigeria and foreign countries range between 1.5% and 3%. About a year after this agreement was made, the government reneged, called for a refund of commission due to service providers and held on to their payments for over two years. The debt accrued shot up above N10 billion, yet the TSA continued to run while the service providers groaned under the unfair treatment of the government.

On 1 November 2018, without any warning or sensitisation of members of the public, who actually pay into the TSA, the FG suddenly transferred the transaction cost of TSA to payers using the Remita platform. Not only that, amidst the huge debt, Ahmed Idris, the Accountant-General of the Federation, claimed that the TSA in the past two years has been serviced by N16 billion.

“Within the last two years, the government spent almost N16 billion in this direction which ordinarily should be borne by those making payments. So, it is time for Nigerians to pay for the services that they receive, and the government will take whatever is due to it without necessarily incurring cost. In the old tariff regime, the Federal Government bore the charges on all transactions to the service providers on behalf of payers,” the AGF said.

No one has challenged the government with these questions: First, why has the government failed to pay service providers for the past two years? Second, where did the N16 billion quoted by the AGF, go in the past two years, if service providers have not been paid? Third, why should the citizens be forced to pay for a service that the federal government signed up for to collects its own revenue, without being informed?

Also, the FG continues to show an unequalled level of disregard for the indigenous companies. A Nigerian company, SystemSpecs was able to deploy Remita, even when other foreign software failed, and the TSA was to be suspended for another two years.

Nigeria has always been known to invest heavily in foreign technologies. According to the President of Institute of Software Practitioners of Nigeria (ISPON), Mr. Olorogun James Emadoye, GIFMIS at Office of the Accountant General of the Federation is powered by a software from Estonia; IPPIS at the OAGF is powered by a software from United States; ITAS at Federal Inland Revenue Service (FIRS) is powered by a software from Canada; Bank Verification Number (BVN) at Nigeria Interbank Settlement System (NIBSS) is powered by a software from Germany; RTGS at the Central Bank of Nigeria (CBN) is powered by a software from Sweden while most of the software in Nigeria banks are India, Jordan and others. The yearly capital flight as a result of preference for offshore software is estimated to have risen from N200 billion in 2012 to N400 billion. This covers the acquisition and maintenance of the software used in both the public and private sectors.

The government has not only botched the agreement with SystemSpecs, it has also not seen the need to recognise the success of indigenous technology in powering a policy of such strategic importance. If the TSA was run by a foreign service provider, the huge cost implications in terms of maintenance charges will be gladly shouldered, with contract terms highly upheld to keep the project running.

The existing presidential directive that SystemSpecs be paid all agreed percentage was stalemated for two years without implementation, and with commencement of new pricing regime, the company may be pressured into forgoing an accrued debt of over N10 billion.

Like Ms. Patel alleged, it is always a problem for Nigerian government to honour contractual obligations either for investors coming into the country or with Nigerian firms doing business in the country. As a matter of fact, when it comes to Ease of Business, Nigeria has paid more attention to foreigners, than Nigerians.

The government’s role in business does not only “demonstrates the risks of investment into Nigeria,” but the unimaginable plight of Nigerian-owned business dealing with the government. We must first learn to do business with ourselves, before we let foreign investors expose the rot in our system to the world.

Rogers writes from Ilorin

GrassRoots.ng is on a critical mission; to objectively and honestly represent the voice of ‘grassrooters’ in International, Federal, State and Local Government fora; heralding the achievements of political and other leaders and investors alike, without discrimination. This daily, digital news publication platform serves as the leading source of up-to-date information on how people and events reflect on the global community. The pragmatic articles reflect on the life of the community people, covering news/current affairs, business, technology, culture and fashion, entertainment, sports, State, National and International issues that directly impact the locals.

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Transport

Enugu Air, CNG Buses, Transport Terminals Take off in May

… Govt set to develop tourist sites, reports SANDRA ANI

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Enugu Air, CNG Buses, Transport Terminals Take off in May -
L-r: Engr. Gerald Otiji, commissioner for Works and Infrastructure; Dr. Obi Ozor, commissioner for Transportation, and Lloyd Ekweremadu, commissioner for Youth and Sports Development, after the State Executive Council meeting at the Government House, Enugu, at the weekend.

… Work starts on Nnamdi Azikiwe Stadium, Awgu Games Village in earnest

The Enugu Air, CNG Mass Transit Programme, and the ultramodern transport terminals all built from scratch by the Governor Peter Administration are to be launched for operation before the second anniversary of the government.

The government has also approved the development of the state’s tourism industry, while total transformation of the Nnamdi Azikiwe Stadium and Awgu Games Village will start in June to get them ready for the National Sports Festival to be hosted by the state in 2026.

These were made known by the Commissioner for Transportation, Dr. Obi Ozor; Commissioner for Culture and Tourism, Dame Ugochi Madueke; Commissioner for Works and Infrastructure, Engr. Gerald Otiji; and Commissioner for Youth and Sports Development, Barr. Lloyd Ekweremadu after the State Executive Council meeting at the Government House, Enugu, at the weekend.

Briefing Government House Correspondents, Ozor said, “We are starting off with the initial three aircraft and two of the aircraft are already on ground. The third one will be on ground by the end of this month. We are hoping to start the commercial operations before the second year anniversary of this administration.

“You have also seen buses for the mass transit programme across the state. 50 of them are already parked at Okpara Square, and an additional 50 will be joining that fleet in the next few weeks. The 100 of them will be going into commercial operations before the end of this month, which is the second year anniversary.

“Also, the bus terminals, two at Holy Ghost, one each at Gariki, Abakpa and Nsukka, will also be commissioned and go into commercial operations before the 29th of May, this year.”

He added that the government planned to bring in the electric and CNG automotive manufacturing plant into Enugu as well as launch in the next 150 days the Enugu Smart Transport Programme, which would see to the injection of over 2,000 electric vehicles.

Also briefing newsmen, Dame Madueke said funds would be invested in the tourism industry in phases.

“We are going to have it in phases. For the first phase, we are having Awhum Waterfall, Nsude Pyramid where we are going to have the first canopy walkway in the South East. It measures about 600 metres, which will actually be the longest in Nigeria.

“We also have Ngwo Pine Forest where we are having the first zipline in Nigeria. The zipline will measure about 300 metres. In the same Ngwo, we will have a big rotunda and a smaller rotunda. We have the Cross of Hope to be located at Okpatu. The Cross of Hope will be sitting 580 metres above sea level and the cross itself will measure about 50 metres, making it a total of about 630 metres above sea level. The cross will have about 15 floors with a lift.

“At Awhum Waterfalls, we are going to have another canopy walkway and a boardwalk to preserve the ecosystem.

“We equally have the Akwuke/Atakkwu Waterpark and Ovu Lake Golf and Resort at Akpawfu,” she stated.

She explained that all the tourist sites would have experience centres, food courts and renewable energy, adding that tour buses would soon arrive to ensure ease of movement of tourists.

Ahead of the 23rd edition of the National Sports Festival, Enugu 2026, Barr. Ekweremadu said the State Executive Council had equally directed the commencement of work both at the Nnamdi Azikiwe Stadium and Awgu Games Village not later than June.

“We also briefed the council on the progress made in establishing a Lab for Animation for young people in Enugu State, which His Excellency will be commissioning soon. The lab is ready.

“We are similarly working towards empowering over 2,100 young people across the state, who were trained around December last year. This empowerment will be coming up on the 12th of August, being the International Youth Day’” Ekweremadu concluded.

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Energy

NNPC, Dangote Strengthen Strategic Partnership

Bot partners reaffirmed commitment to Healthy Competition Towards National Prosperity, reports SANDRA ANI

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NNPC and Dangote partnership
Group CEO of NNPC Ltd., Mr. Bashir Bayo Ojulari receives the President/Chief Executive of Dangote Group, Mr. Aliko Dangote during a visit by the latter to the NNPC Towers, on Thursday

As part of ongoing efforts to promote mutually beneficial partnerships and foster healthy competition, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and Dangote Petroleum Refinery & Petrochemicals (DPRP) have pledged to deepen collaboration aimed at ensuring Nigeria’s energy security and advancing shared prosperity for Nigerians.

This commitment was made during a courtesy visit by the President/Chief Executive of Dangote Group, Mr. Aliko Dangote, and his delegation to the Group CEO of NNPC Ltd., Mr. Bashir Bayo Ojulari, and members of the company’s Senior Management Team at the NNPC Towers, on Thursday.

During the visit, Dangote pledged to collaborate with the new NNPC Management to ensure energy security for Nigeria.

“There is no competition between us, we are not here to compete with NNPC Ltd. NNPC is part and parcel of our business and we are also part of NNPC. This is an era of co-operation between the two organizations.” Dangote added.

While congratulating the GCEO and the Senior Management Team on their “well-deserved appointments,” Dangote acknowledged the enormity of the responsibility ahead, noting that the GCEO is shouldering a monumental task, which he expressed confidence that, with the capable hands at his disposal in NNPC, the task is surmountable.

In his remarks, the GCEO, Mr. Bashir Bayo Ojulari assured Dangote of a mutually beneficial partnership anchored on healthy competition and productive collaboration.

Ojulari highlighted the exceptional caliber of talent he met in NNPC Ltd., describing the workforce as a dedicated, highly skilled and hardworking professionals who are consistently keen on delivering value for Nigeria.

Expressing the company’s readiness to build a legacy of national prosperity through innovation and shared purpose, Ojulari said NNPC will sustain its collaboration with the Dangote Group especially where there is commercial advantage for Nigeria.

Both executives also committed to being the relationship managers for their respective organisations through sustained productive collaboration and healthy competition, thereby envisioning limitless opportunities for both organizations.

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Finance

PAFON 2.0: Experts Highlight Ingredients for Accelerated Financial Inclusion in Nigeria

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PAFON 2.0
L-r: Peter Oluka, co-convener, Payments Forum Nigeria (PAFON); Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN); Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited; Chika Nwosu, managing director of PalmPay; Happiness Ohioha, CEO, Tizel Cybersecurity, and Chike Onwuegbuchi, co-convener, Payments Forum Nigeria (PAFON), at PAFON 2.0 held in Lagos, recently.

Improved efforts at collaboration among financial service providers, telecommunication operators, and tech Startups, with conscious effort geared at consumer awareness, have been proffered as key remedies to the challenge of financial inclusion in the country.

This is the viewpoint of stakeholders that gathered for the second edition of Payment Forum Nigeria (PAFON 2.0) held recently in Lagos.

PAFON 2.0
L-r: Munachi Duru, Head of Innovation and partnership at AfriGoPay Financial Services Limited; Oluwabunmi Ogunyemi, customer support lead at Moniepoint MFB; Chika Nwosu, managing director of PalmPay, and Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited, at PAFON 2.0 held in Lagos, recently.

Delivering a keynote address on the theme, “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, Ebehijie Momoh (Mrs.), the managing director and chief executive officer of AfriGoPay Financial Services Limited, said that with 64% of Nigerian adults being financial included the country has made immense progress in that regards.

She said that between 2012 till date, the country has recorded robust regulatory reforms, especially the launch of the Bank Verification Number (BVN) in 2014 making it easier to identify and track customers across different banks.

“This initiative enhanced the credibility of the financial sector and increased confidence in formal banking systems.

The growth in adoption of smartphones has also helped the financial sector to leapfrog financial inclusion. Nigeria has 142.16 mobile internet subscriptions with an average consumption of ~7.04GB / month as of January 2025. If you juxtapose it to the 15.9% decline in shipments of feature phones to 18.8 million units in Africa as at Q1 2024, you will understand that the uptake in smartphones has helped us a great deal.

Mrs. Momoh who spoke through Mr. Munachi Duru, the head of Innovation and Strategic Partnership at AfriGoPay, said the adoption of artificial intelligence banking gave birth to solutions like smile identity, a leading KYC verification provider launches facial recognition capabilities in Nigeria as neobanks and commercial banks are deploying AI-based KYC verification tools, enabling cheaper and efficient customer acquisition and servicing.

In her goodwill message, Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited said that with progress made in accelerating financial inclusion to unbanked and underbanked communities in Nigeria, SANEF has leveraged Artificial Intelligence (AI) as the next step to advancement in financial services in the country.

She noted that as technology evolves rapidly within the financial ecosystem, Financial Inclusion must continue to be at the center of the nation’s progress.

PAFON 2.0
L-r: Peter Oluka, co-convener, Payments Forum Nigeria (PAFON); Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN); Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited; Chika Nwosu, managing director of PalmPay; Happiness Ohioha, CEO, Tizel Cybersecurity, and Chike Onwuegbuchi, co-convener, Payments Forum Nigeria (PAFON), at PAFON 2.0 held in Lagos, recently.

According to her, agent banking has been a game-changer in expanding financial inclusion across Nigeria. “By deploying agents in underserved areas, we have brought financial services and banking products such as account opening, cash in, cash out, bill payment, transfers and other services closer to the unbanked and underserved.”

Speaking during a panel session, Mr. Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), spoke of lack of collaboration and slow institutional drive towards AI as key barriers hindering digital inclusion.

He harped on the need for information sharing among fintech operators, and improved free flow of information to consumers. “The human barrier angle needs to be addressed. Fintechs need to be pushed to move forward, AI cannot operate itself.”

In his contribution, Mr. Chika Nwosu, managing director of PalmPay, reiterated the need to reach the consumers with simple format communication and education style.

He said operators should create awareness and design consumer​-centric approach in developing any products. This will not only draw the consumers towards the product, but also generate trust and ease the use of such products.

Focusing on the use of AI to ensure reach, inclusion and security, Azure Application and AI Specialist at Microsoft UK, Olusoji Solomon Adeyemo, spoke on the need for AI and Blockchain in the bid to extend services to rural communities and the unbanked.

PAFON 2.0
PANELISTS: L-r: Chike Onwuegbuchi, co-convener, Payments Forum Nigeria (PAFON); Chika Nwosu, managing director of PalmPay; Oluwabunmi Ogunyemi, customer support lead at Moniepoint MFB; Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited; Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN),and Joan Aimuengheuwa, assistant editor, Techeconomy; Virtual panelsts: Olusoji Solomon Adeyemo, Azure Application and AI Specialist, Microsoft UK, and Olusegun Gabriel Afolabi, co-founder and chief innovation architect, Face Technologies UK Ltd., at PAFON 2.0 held in Lagos, recently.

According to him, “AI, Blockchain and CBDs are shaping the future of payment, and there is a serious need for education. We need to align with global trends in new tech adoption.”

While noting that AI can ensure reach, Adeyomo said blockchain will also create digital identity that is exclusive and will promote digital financial inclusion.

In her position, Oluwabunmi Ogunyemi, the customer support lead at Moniepoint MFB, proffered physical and digital meet with customers, even in rural areas, as a viable means of inclusivity.

Also speaking, Olusegun Afolabi, the co-founder of Face Technologies UK Ltd., called for improved collaborations among stakeholders in the financial sector.

According to him, the fintech companies must also embrace effective identification solutions, focusing on biometrics and card technologies to ensure topnotch security for users.

Earlier in his opening remarks, Mr. Peter Oluka, co-Convener of the Forum, noted that the financial inclusion journey in the country has come to a crucial juncture where over 30 million adults are still financially excluded, many of whom reside in rural areas or belong to vulnerable demographics.

He noted that despite 12% growth in access to formal financial services between 2020 and 2023, as recorded by the EFInA Access to Financial Services Survey 2023, challenges still exist that hinders the unlocking of the potentials of digital payments to drive inclusive growth in Nigeria.

He further posited: “As digital infrastructure grows and fintech innovation accelerates, we must channel these advancements toward building a more inclusive, secure, and trusted financial ecosystem. This is not just about transactions — it’s about empowerment, opportunity, and economic participation for all.

Payments Forum Nigeria
Panel session led by Chukwuemeka Mbaebie, convener of Lagos Blockchain Week.

Nodding in agreement, Mr. Chike Onwuegbuchi, co-Convener, PAFON, reiterated the need for all stakeholders in the financial payment industry, including regulators, to participate in forums as PAFON, to map out, growth strategies with consumers and other strata of the ecosystem.

PAFON 2.0
A cross section of participants at Payments Forum Nigeria – PAFON 2.0 held in Lagos, recently.

He promised to invite security stakeholders, such as the EFCC and others in subsequent editions of the event. This will help give insight into security concerns in deployment of products and services in rural and unbanked communities.

Payments Forum Nigeria (PAFON) is a platform dedicated to shaping the future of digital payments and financial services in our country.

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