Commercial Banks on Tuesday, September 15 transferred an estimated N1.2 trillion of public sector funds to the Central Bank of Nigeria in line with the Federal Government directive on Treasury Single Account, TSA according to online reports.
President Muhammadu Buhari had ordered that all revenues be paid into the “Treasury Single Account” (TSA) as part of efforts to aid transparency.
The deadline for the implementation of the Treasury Single Account for MDAs elapsed on Tuesday and as such, Nigerian banks scurried to sort out accounts of MDAs the CBN circulated among banks to identify which of the accounts was domiciled in their banks.
As a result, of this, there was no trading between banks and no bids made on the inter-bank money market yesterday.
“No trading is currently going on because no bank was willing to put out quotes until there is a clearer direction with the implementation of the Treasury Single Account,” one dealer said.
“The market is frozen right now, as no trading is going on,” a bank treasurer said.
Meanwhile, analysts have predicted that implementation of the government policy will drain liquidity from the banking system, potentially putting some banks in a dire situation.
Source: Africa Business Communities