Business

Banks move N1.2trn to CBN

Published

10 years ago

September 16, 2015

—Long list of MDAs account provided by CBN
—interbank money market frozen
— Law makers support FG
— Calabar Teaching hospital expresses reservations

By Omoh Gabriel
Banks were yesterday busy with the transfer of an estimated N1.2 trillion of public sector
Funds to the Central Bank of Nigeria in compliance with the federal government directive on Single Treasury Account, TSA. As the deadline for the implementation of the Single Treasury Account for MDAs closed yesterday Nigerian banks were sorting out accounts of MDAs the CBN circulated among banks to identify which of the account was domiciled in their banks. As a result there was no trading between banks. According to bank treasurers, banks made no bids on the inter-bank money market yesterday as they were engaged on how to comply with a directive to transfer government revenues into a single account with the central bank.
President Muhammadu Buhari has ordered that all revenues be paid into the “Treasury Single Account” (TSA) from yesterday, as part of a drive to fight corruption and aid transparency. “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 right now frozen, as no trading going is on,” a bank treasurer said.
Analysts have predicted that implementation of the government policy will drain liquidity from the banking system, potentially putting some banks in a dire situation.
The overnight lending rate closed at 5 percent on Monday, but dealers said the rate was initially quoted at 200 percent on Tuesday. No deals were done using that rate.
About 1.2 trillion naira, or 10 percent of banking sector deposits, is expected to be transferred to the government account with the central bank in the course of implementing the TSA policy, Bismarck Rewane, chief executive at Financial Derivative company said. “We expect an initial paralysis in the market and a disruption of operations of some of the banks, but they would overcome that”.
He said the central bank could reduce the size of the cash reserve requirement (CRR) commercial lenders are expected to keep with it and inject some liquidity into the banking system to minimise the impact of the new account policy. The CRR, which is the amount the central bank requires banks to set aside, is currently 31 percent for both public and private sector deposits.
Many of the bank contacted by Vanguard said they will comply. This is because since it is the CBN that provided the list of MDAs accounts for banks to move the funds in them to the Single Treasury Account, it is CBN that can say a particular bank has complied. By the end of today each bank will know if it has satisfied the CBN one of the banks treasurer told Vanguard..
An official of Guarantee Trust Bank who did not want his name in print said that the CBN gave banks a very long list of accounts of MDAs in banks. Each bank was told to identify the accounts domiciled in their bank and remit the funds to the CBN. He said that the list was very long showing that the CBN did its home work. He said that banks have no option but to comply with the directive saying that the policy will further squeezed the already tight liquidity situation in the economy.
He however said that if government fulfills its obligation by paying contractors its debt, part of the money will return to the banking system.
Another banker with First Bank said that “the deadline for the implementation of TSA takes effect from yesterday and we can confirm to you that the Bank is in the process of complying with the directive. As we speak, we would not be able to give an accurate figure involved industry wide.
The immediate effect of this on the banking sector is that is going to add to the already liquidity squeeze in the economy and in a way further constraint lending by the DMBs”
It was the same story at UBA.
Data from the CBN indicates that as at end of June 2015 total deposits (demand, time and savings) in the financial system was N13.5 trillion. Analysis of this show that the private sector accounts for 90.7 per cent N12.2trillion of total deposits, while public sector funds accounts for 9.3 per cent N1.3trillion which will be lost to TSA.
In a circular with reference No BSD/DIR/GEN/LAB/08/048, dated September 7, 2015, entitled: “Deadline for transfer of Federal Government funds to Treasury Single Account,” signed by Mrs. Tokunbo Martins, CBN Director of Banking Supervision, the CBN warned that it would “impose severe sanctions on any bank that fails to comply on or before the deadline of September 15, 2015.”
President Muhammadu Buhari had on Monday set a deadline of September 15 for MDAs to commence the use of the approved government bank accounts for payments as part of efforts to ensure transparency and stamp out corruption, following observations that some officials were foot dragging. Femi Adesina, the President’s spokesman, had explained that all receipts due to the government or its agencies must be paid into the TSA maintained by the CBN and linked to other government bank accounts, before the deadline.
Since August 2013, when the CBN raised the CRR from 12 per cent to 50 percent, banks have continued to struggle to source for deposit from private sector and individuals, through increasing interest rate of savings accounts and other facilities. Public sector deposits with banks which only fell 2 per cent in October 2013, representing N3.99 trillion from September’s N4.06 trillion, stood at N4.02 trillion in November 30.

Treasury Single Account deadline: Lawmakers laud Buhari’s political will
As the deadline for compliance with the Treasury Single Account for Ministries, Departments and Agencies (MDAs) ended yesterday, some members of the National Assembly have lauded President Muhammadu Buhari for introducing it.
The lawmakers told the News Agency of Nigeria (NAN) that full compliance with the directive would help in blocking leakages and ensure transparency. Sen. Ali Wakili, (APC-Bauchi), who commended President Buhari for the directive, said the implementation of a TSA was backed by law.
Wakili said the development would enable banks, which hitherto relied majorly on MDAs, to become more resourceful. According to him, fragmented banking has before now affected government’s ability to undergo successful cash planning and management.
Sen. La’ah Danjuma (PDP-Kaduna) said that the implementation of the policy would go a long way in revamping the economy.
He expressed optimism that the move would yield positive result in the long run.
“It is time for Nigerians to support all policies of government aimed at improving the economy. There is no doubt that the TSA would have an immediate impact on banks but the long-term effect will be beneficial, so I support it,’’ he said.
NAN reports that the Treasury Single Account is a unified structure of government bank accounts that allows consolidation and best use of government cash resources.
Section 80 (1) of the 1999 Constitution as amended makes provision for implementation of TSA.
It states: “All revenues, or other moneys raised or received by the Federation shall be paid into and form one Consolidated Revenue Fund of the Federation.” (

Running teaching hospitals with TSA difficult, says medical director
But the Chief Medical Director of the University of Calabar Teaching Hospital, Dr Thomas Agan, has said that the hospital will face challenges with the new treasury single account. Speaking with newsmen in Calabar yesterday, Agan said that most of the items used in running the hospital were in a revolving system. He said that meant that the management collected items and in turn remitted the proceeds and retained a little percentage.
“We have not been given detailed information on how we are going to operate. Until we are given a clear cut directive on our functions in the present situation, there is bound to be serious challenges,’’ Agan said. He said that although the account was introduced by the government to ensure transparency in governance, it was necessary to critically analyse the whole process as it concerned the health sector.
He added that the hospital had improved on its services to the people, especially in the area of clinical services.
“We now have clinical services for the treatment of sickle cell that runs every Thursday as well as diabetes clinic that holds every Wednesday. People can avail themselves of these and many more, including open heart surgery, to live normal lives,’’ he said.
He lamented the non-capture of training in the hospital’s budgetary provisions and called on the relevant authorities to reverse the trend.

Business

FG earned N2.78trn from Company Income Tax in second quarter 2025—NBS

Published

1 week ago

November 28, 2025

Business News Report

National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.

The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.

The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.

According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.

This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.

Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.

On the flip side, some sectors experienced sharp declines in company income tax remittances.

Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.

The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.

In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.

Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.

Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.

At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.

Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.

Business

Lagos govt promises MSMEs continued visibility, market access

Published

3 weeks ago

November 16, 2025

Business News Report

Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”

Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.

“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.

The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.

This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN

Business

Jumia posts $17.7m pre-tax loss in Q3, down 1% in 12 Months

Published

3 weeks ago

November 12, 2025

Business News Report

Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.

Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.

Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.

Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.

In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.

“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”