By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Office of the Accountant-General of the Federal Republic of Nigeria (AGF) has granted an exemption to the Nigerian National Petroleum Corporation (NNPC), Power Holding Company of Nigeria and 11 other MDAs in line with the e-collection and mop up exercise by the federal government.
The exempted MDAs are profit oriented government business entities that pay dividends to the Federal Government of Nigeria.
This is contained in a circular sited by Proshare from the AGF’s office to the director, Central Bank of Nigeria, Banking & Payments System Department, referenced FD/LP2015/C/ADC/20/1/ /DF dated September 14, 2015 and authored by M K Dikwa, mni , for the Accountant-General of the Federation, Federal Ministry of Finance, Funds Department, Abuja, FCT.
The other 11 MDAs include Bank of Industry, Nigeria Railway Corporation,
Federal Mortgage Bank of Nigeria, Bank of Agriculture, Niger Delta Power Holding Company / National Integrated Power Project and National Communication Satellite Limited.
Others are Galaxy Backbone Limited, Ajaokuta Steel Company Limited, Urban Development Bank, Nigerian Export – Import Bank and Transcorp Hilton Hotel.
Parts of the contents of the circular as sited by Proshare entitled “Approval to Exempt Some MDAs in line with the Collection Mop-up Exercise” reads thus: “Approval is hereby granted to your bank to exempt the Accounts of thirteen (13) MDAs (Category 6) 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 there are declared.
Please note that in line with the Presidential approval, the following as it relates to Nigeria National Petroleum Corporation NNPC as listed above (S/No.9) under Category 4 should also apply:
i. That NAPIMS remains classified as an MDA that is funded from the Federation Account under Category 4 of the Circular, being the NNPC Business Unit responsible for the management of the Federation’s investment in the upstream activities and funded from direct proceeds of oil and gas revenue.
ii. That NNPC will continue to preserve the status with respect to NAPIMS Operations Account as well as Escrow Account for Third Party Financing in view of the Joint Venture (JV) Cash funding currently being experienced.
iii. That all other NNPC’s commercial/Business Entities as re-classified as ‘Profit-Oriented Public Corporations/Business Enterprises’ under Category 6 of the Circular which requires that only dividends from these entities be paid into the TSA.
In its bid to contain corruption, President Muhammadu Buhari had on August 9, 2015 directed each and every Federal Government Ministry, Department or Agency to start paying into a Treasury Single Account (TSA) for all government revenues, incomes and other receipts.
According to the directive, the measure is specifically to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.
The TSA is a unified structure of bank accounts enabling consolidation and optimal utilisation of government’s cash resources. It is a bank account or a set of linked bank accounts through which government transacts all its receipts and payments and gets consolidated view of its cash position at any given time, a Premium Times report said.
