Senate Probes TSA Over Claim That Collection Agent Gets N25bn

The Senate, Wednesday, mandated its Committees on Finance, Banking and Financial Institutions and Public Accounts to investigate operations of the Treasury Single Account in Nigeria.

The Senate resolution followed a motion by Dino Melaye (APC-Kogi West) who argued that choosing a company, Remita, as the Federal Government’s electronic collection agent, violated Nigerian laws, including section 162 (1) of the 1999 Constitution as amended, Central Bank of Nigeria, CBN, Act, and Bank and other Financial Institutions Act, BOFIA, 2007.

He said “the appointment of REMITA as an agent of operations of the Treasury Single Account negates and contravenes sections 162 91) of the 1999 Constitution which provides for maintenance of special fund to be called ‘Federation Account’ in which all revenues accruing to the Federal Government shall be paid ‘directly’.

The Senate Committee Chairman on the FCT said CBN could only appoint registered banks to collect and disburse money on behalf of the Federal Government.

But since Remita is not a registered bank, Melaye argued that choosing it as an e-collection agent for the TSA operation breached BOFIA 2007 and CBN Act.

It would be recalled that President Muhammadu Buhari on September 15, directed all Ministries, Departments and Agencies, MDAs, to close their various accounts with commercial banks and pay all revenues into the Federal Government’s account with CBN under the TSA policy.

The directive was aimed at blocking avenues for leakages as well as putting an end to what obtained in the past when revenue accruing to the FG was either completely withheld or not fully remitted.

While questioning the legality of operating the TSA through a revenue collection agent, Remita, Melaye disclosed that the agency had made at least N25 billion in the course of the operation “for doing nothing”.

According to his explanation, the Federal Government mopped up N2.5 trillion on September 15 alone through Remita, which in turn charges one per cent of all monies passing through it, amounting to N25 billion.

Adopting the motion, the Senate asked its committees on Finance, Banking and other Financial Institutions and Public Accounts to “carry out holistic investigation on the matter and report back in four weeks”.