Having sanctioned three deposit money banks for non compliance with the directive to remit all public sector funds into the Treasury Single Account (TSA), the Central Bank of Nigeria (CBN) has directed all primary mortgage institutions and development finance institutions to comply immediately or face similar fate.
The CBN, in a circular dated November 12, 2015, and made available on its website yesterday, noted that the initial directive included all Primary Mortgage Institutions (PMIs) and Development Finance Institutions (DFIs). It, however, did not specify if microfinance institutions were to also comply.
The circular signed by the CBN director, Ahmad Abdullahi, and directed to all chairmen, managing directors, non executive directors, top management staff, all operators and external auditors, PMIs, and DFIs, noted that they were supposed to have complied with the September 15 deadline given by the federal government.
Consequently, it noted that in the event that any PMI or DFI still has deposits of the federal government, MDAS or parastatals, such deposits should be transferred to the TSA held by the CBN with immediate effect, “failing which severe penalties would be imposed for non compliance.”
The CBN had recently fined Skye Bank N4 billion for holding onto NNPC funds running into N40 billion long after the September 15 deadline.
It had earlier slammed a N1.87 billion and N2.94 billion on First Bank Nigeria Limited and United Bank for Africa respectively.
Meanwhile, a total of N836.714 billion has been paid into the TSA by 20 banks as at October 27 with Zenith Bank, UBA and First Bank accounting for 61 per cent of the entire transfers for all the banks.
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