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Treasury Single Account: Why Nigerians Must See The Big Picture [MUST READ]

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TSA

It is often said that Nigerians are resilient and can ‘suffer and smile’ their way through any situation, however tough. Maybe so. But as Nigeria gradually slides into full-scale economic recession, frowns are beginning to outnumber smiles and many fear the future looks bleak.

Recently, the International Monetary Fund (IMF) painted a gloomy picture when it forecast that the Nigerian economy was likely to contract by 1.8 percent this year. Central Bank of Nigeria Governor Godwin Emefelie’s prognosis was no less dire.

He disclosed that Nigeria was experiencing economic stagflation, which is a euphemistic way of admitting the economy is experiencing little or no growth, resulting in high rates of unemployment, inflation and a decline in Gross Domestic Product (GDP).

Already, the prices of foodstuff, transportation, shelter and other basic necessities are at an all-time high. No one needs to be reminded that massive unemployment only means an increase in social vices. After all, Nigerians have their hands full struggling to make ends meet amidst one of the toughest economic downturns they have ever experienced.

In situations like this, Nigerians are quick to trade blames rather than see the big picture. Some groups and individuals are already blaming the parlous economy on the Federal Government’s implementation of the Treasury Single Account (TSA) policy. I beg to differ.

It is ironic how a policy that eliminates the diversion of public funds by stipulating that all revenue receipts and payments conducted by Ministries, Departments and Agencies (MDAs) be deposited into a Consolidated Revenue Account (CRA) can actually have negative implications for the economy. Rather, we should blame previous administrations for not implementing such a policy sooner, leaving much room for corruption which well-nigh left the treasury empty during the inception of this administration.

It is also questionable to blame banks’ liquidity problems on the adoption of the TSA policy. After all, we want a banking system that is strong enough to power the economy and keep our investments safe.

So there is absolutely no justification for Diamond Bank to lay off 200 staff, Ecobank 1,040 and FBN Holdings a projected 1000 just because the new policy stipulates that Deposit Money Banks (DMB) remit the revenue they receive from MDAs to the CRA at the close of every banking day. A strong banking system cannot be built on profit generated from cash deposits left stagnant while the government is starved of funds meant for capital and other projects.

What this dire situation calls for is that Nigeria urgently diversify its economy away from crude oil. Information and Communication Technology (ICT) is the veritable tool for economic growth that many other forward-looking nations of the world have adopted.

According to statistics, India raked in a whopping $75 billion from its software exports between 2014 and 2015, and is continuously registering double-digit annual growth in the process.

At the World Economic Forum (WEF) in Kigali earlier this year, South African Deputy President Cyril Ramaphosa reportedly assured potential investors of positive returns on their investments in South Africa’s infrastructure and ICT sectors. He emphasised that such innovative partnerships could help bridge the financing gaps for economic and social infrastructure.

Nigeria cannot afford to lag behind if we must move forward. Ours is a country that boasts several homegrown ICT companies and initiatives that show much promise and can be encouraged. For the record, Glohas beat the odds to become a powerhouse in telecoms; whilePaga and eTranzactare two ePayment systems that have made a difference on the Nigerian economic landscape.

More crucially, the revolutionary TSA policy adopted by the Federal Government was invented and continues to be powered by indigenous software giant SystemSpecs, using its software Remita. According to recent reports, the software has already saved the government up to N3 trillion in the first quarter of 2016 alone and has the potential to do more.

Recently, Minister of Information and Culture, Lai Mohammed admitted that the judicious management of the TSA has helped advance the President Muhammadu Buhari administration’s fight against corruption and saved Nigeria from imminent collapse.

He maintained that this administration had managed scarce resources prudently, thanks to TSA, the anti-corruption fight and elimination of ghost workers. All of this can only be good for brand Nigeria as a reference point for something other than corruption and terrorism.

So rather than throw the baby away with the bathwater, we must begin to appreciate the positive changes in our payment landscape. If change is to happen, sacrifices must be made urgently and that includes economic diversification in favour of ICT.

Aderemi is a Warri-based ICT Enthusiast

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Yahaya Bello: EFCC Confirms Refund Of $760,000 From American International School Abuja

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The American International School in Abuja has reimbursed the Economic and Financial Crimes Commission (EFCC) for the amount of $760,910 that it was previously paid by former Kogi State Governor Yahaya Bello for his children’s advanced school fees.

Dele Oyewale, the EFCC spokesperson, verified this on Saturday.

The school requested the anti-graft agency’s “authentic banking details” in a letter dated October 24, 2022, in order to pay the reimbursement “as part of investigation into the alleged money laundering activities by the Bello family.”

The sum of $845,852 was said to be paid to the school between September 2021 and October 2022. The school said it deducted the educational services rendered between the period, with the remaining amount being $760,910.

The EFCC is prosecuting Bello on 19 counts bordering on alleged money laundering, breach of trust, and misappropriation of funds to the tune of N80.2 billion. The matter is before Justice Emeka Nwite of the Federal High Court in Abuja.

EFCC chief Ola Olukoyede, who vowed to prosecute Bello or resign, alleged that the embattled ex-governor withdrew $720,000 from the state’s accounts to pay his child’s school fees in advance just before he left office on January 27, 2024.

The anti-graft commission had declared Bello wanted after his successor, Governor Usman Ododo allegedly whisked him away on April 17, 2024, preventing EFCC operatives to arrest him (Bello) when they laid siege to his Abuja residence.

Meanwhile, a Kogi State High Court sitting in Lokoja has ordered EFCC chairman to appear in court on May 13, 2024, to show cause why an order of committal should not be made against him for allegedly disobeying court order.

The EFCC boss is facing a contempt charge for carrying out “some acts upon which they (the EFCC) have been restrained” by the Court on February 9, 2024, pending the determination of the substantive Originating Motion.

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Yahaya Bello: Kogi Court Summons EFCC Chairman Olukoyede Over Alleged Contempt

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Ola Olukoyede, the chairman of the Economic and Financial Crimes Commission (EFCC), has been directed by a Kogi State High Court in Lokoja to appear in court on May 13, 2024, to provide justification for not having an order of committal placed against him for allegedly defying a court order.

A contempt charge has been brought against the EFCC chairman for executing “some acts upon which they (the EFCC) have been restrained” by the Court on February 9, 2024, while the Originating Motion’s merits are being determined.

Justice I. A. Jamil, delivering a ruling in Suit No: HCL/68M/2024 and Motion No: HCL/190M/2024, ordered that “the said act was carried out by the Respondent (EFCC) in violation of the order, which was valid and subsisting when they carried out the act. That same act of the Respondent amounts to Contempt.

EFCC operatives had laid siege on the residence of the immediate past Governor of Kogi State, Alhaji Yahaya Bello, as early as 8 am on April 17, 2024, with a bid to arrest him, despite a court order restraining them from taking such action, pending the determination of the Originating Motion.

Justice Jamil’s order was based on a motion ex-parte filed by Yahaya Bello through his lawyer, M.S. Yusuf, where he prayed to the court for an order to issue and serve the Respondent (EFCC Chairman) with Form 49 Notice to show cause why Order of committal should not be made on Olukoyede.

Having listened to the arguments of the Applicant’s counsel, the submission and the exhibits attached in the Written Address, Justice Jamil granted Yahaya Bello’s prayers and ordered Olukoyede to be summoned to appear before the court to answer the contempt charge.

Delivering his order on the motion on April 25, 2024, Justice Jamil said, “The applicant’s application before me is to the effect that the Respondent has carried out some acts upon which they have been restrained by this Court on the 9th of February, 2024, pending the determination of the substantive motion on Notice before this Court.

“That the said act was carried out by the Respondent in violation of the order which was valid and subsisting when they carried out those acts. That same acts of the Respondent amount to acts of contempt.

“That the Respondent should be summoned to appear before this Court to answer to the contempt charge.

“It’s against the above facts that this Court hereby grants the prayers sought in line with the principle of “Audi Ultra Patem”. To wit:

“An order of this Honourable Court for the issuance of Form 49 Notice to show cause why an order of committal should not be made against the Executive Chairman of the Respondent – Economic and Financial Crimes Commission (EFCC).

“An order for service of Form 49-Notice to show why an order of committal should not be made on the Executive Chairman of the Respondent – Economic and Financial Crimes Commission (EFCC) at EFCC Corporate Headquarters, Plot 301/302, Research and Institution District, Abuja.

“This matter is adjourned to the 13th of May, 2024 for the Respondent’s Chairman to appear before this Court in answer to form 49 ordered to be served on him.”

 

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Naira Depreciates Because I Was Out Of The Country — Odumeje

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The Mountain of Holy Ghost Intervention and Deliverance Ministry’s Prophet Chukwuemeka Ohanemere, popularly known as Odumeje, declared that he had returned to Nigeria in an effort to halt the dollar’s appreciation relative to the Nigerian Naira.

Odumeje, in a video recorded at the airport while returning from London, boasted: “This is Indaboski Bahose. The war and the battle. A man full of power and activities. The only man who tells you, “I will bring down a dollar,” and he gets it done. When I left the country, dollar began to rise; now, I am back, I will continue where I stopped.”

In a video recording of one of his church programmes a few weeks ago, the self-acclaimed prophet had claimed that the exchange rate of dollar to naira came down because of one of his powers, which he dubbed ‘Abidoshaker.’

His claims came on the heels of the Nigerian currency’s significant gains after exchanging at N1,920 per dollar.

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