CBN unveils guidelines for operation of TSA by states

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As state governments continue to face intense pressure on their cash flows in the face of dwindling revenues and the need to meet increasing statutory and social responsibilities, the Central Bank of Nigeria (CBN) has released the guidelines for the implementation of treasury single account (TSA) by states.

The TSA, according to the CBN, would be a major component of financial and treasury management reforms being undertaken by the states. The new circular posted on the central bank website yesterday, explained that the central bank introduced the guidelines for states in exercise of its powers, as provided in the CBN Act, 2007, Section 47, sub section 2(2d).

“The objective of this guideline is to provide state governments with a clear framework to support their successful implementation of the TSA initiative, based on standardised banking arrangements, operational processes and IT infrastructure,” it added.

Part of the essential requirements for operating the TSA by states is that government agencies are not to operate any bank account under any guise, outside the purview and oversight of the treasury.

Meanwhile, CBN said the value of actual loss to fraud on electronic banking channels declined in 2015 in spite of rise in e-payment transactions. The CBN Director, Banking and Payment System, Mr Dipo Fatokun, said the value of attempted fraud in 2015 dropped to N4.37 billion from the N7.75 billion recorded in 2014.

Fatokun, said the volume of electronic transactions rose by 43.4 per cent to 162.59 million from 113.42 million in 2014. According to him, the value rose to N48.93 trillion from N43.85 trillion in 2014, representing an increase of 11.6 per cent.

Fatokun said the volume of attempted fraud rose by 635 per cent in 2015, the attempted value and actual loss had dropped by 43.6 per cent and 63.7 per cents respectively. He added that the value of actual loss to fraud dropped to N2.25 billion in 2015 as against N6.21 billion lost in 2014.

The director attributed the decline in fraud to the introduction of Bank Verification Number (BVN), the beefed up security features on the electronic payment channels, among others. Also a total of 23,345,964 million bank customers had obtained their Bank Verification Numbers (BVN) as at February 7, 2016.

Fatokun, revealed that over 28,303,332 customers BVN, out of the existing 55,316,040 customers in all the banks in Nigeria, had been linked to their respective bank accounts. According to him, a train-the-trainer session on installation of enrolment and verification devices at branches had been organised for banks staff.

He expressed satisfaction that the BVN initiative had started yielding the desired effects, with the reported elimination of 23,000 ghost workers at the federal government level.

He stated that despite the state of the economy, 2015 witnessed an unprecedented upsurge in the volume and value of transactions across all payment channels in the industry, compared to what was recorded in 2014.

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