Nigeria Grants Exemption on Single Accounts to NNPC BOI and 11 other MDA’s
The TVC news online reports that the Federal Government of Nigeria, through the Office of the Accountant-General of the Federation(AGF), has granted an exemption on the Treasury Single Account(TSA) to 13 entities under its Ministries, Departments and Agencies(MDAs) in line with the e-collection and mop up exercise.
According to a statement from the office of the Accountant -General of Federation, the exempted MDAs are profit-oriented government business entities that pay dividends to the Federal Government.
The entities exempted are the Nigeria National Petroleum Corporation(NNPC), Power Holding Company of Nigeria (PHCN), Bank of Industry(BoI), Nigeria Railway Corporation (NRC) and the Federal Mortgage Bank of Nigeria (FMBN).
Others are Bank of Agriculture (BoA), Niger- Delta Power Holding Company(NDPHC)/ National Integrated Power Project (NIPP), National Communication Satellite Limited, Galaxy Backbone Ltd and Ajaokuta Steel Company Ltd.
The rest are Urban Development Bank, Nigerian Export – Import Bank (NEXIM) and Transcorp Hilton Hotel.
A circular from the AGF’s office to the the Director, Banking & Payments System Department of the Central Bank of Nigeria (CBN) with reference number FD/LP2015/C/ADC/20/1/ /DF dated September 14, 2015 and signed by M K Dikwa, for the Accountant- General of the Federation, Federal Ministry of Finance, Funds Department, Abuja, FCT., titled: Approval to Exempt Some MDAs in line with the e-Collection Mop- up Exercise, read in part:
“Approval is hereby granted to your bank to exempt the Accounts of 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 (TSA) whenever they 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.