Business
MDAs operate bank accounts in violation of TSA guidelines
Some federal government agencies now operate bank accounts in violation of the Treasury Single Account (TSA). The TSA is a bank account or a set of linked accounts through which the government transacts all its receipts and payments.
Under the TSA all government payment for services and revenue collection are operated through one account known as Consolidated Revenue Fund/Treasury Single Account (CRF/TSA) domiciled with the Central Bank of Nigeria (CBN). Hence, ministries, departments and agencies under the federal government are not allowed to open or operate any bank account.
According to the CBN guidelines on the implementation of TSA, “government agencies are not to operate any bank account under any guise, outside the purview and oversight of the Treasury.” Also, the “Guidelines on the Implementation of Treasury Single Accounts
{TSA) I e-Collection”, issued by the Office of the Accountant General of the Federation (OAGF) on October 15th, 2015, prohibited MDAs from operating any bank account. It stated, “No MDA is permitted to maintain account for any purpose with commercial banks including transit accounts. Diversion of deposits to any commercial bank account and use of surrogate accounts of any form is strictly prohibited.”
Vanguard investigations however revealed that some MDAs, especially tertiary institutions maintain accounts with commercial banks. These include: University of Port Harcourt, Port Harcourt; Federal College of Education, Abeokuta; Federal Polytechnic, Kaura Namoda, Zamfara State; and Federal Government Colleges also know as Unity Schools.
How Unity Schools circumvent TSA policy
Vanguard investigations revealed that most of these schools still collect all manners of payment using their Parents Teachers Association (PTA) accounts. Although, managements of the schools claim that the PTAs are run independently, it was discovered that they (PTAs) are mostly cronies who are often used to bypass due process.
For instance, the Federal Government College, Yaba in Lagos last term directed parents to pay their wards’ school fees in cash to the school’s cashier, ostensibly to avoid the challenges being faced in the process of paying into the TSA accounts with banks. This was however discontinued when some parents voiced their objections.
It was also gathered that some schools adopted the method because they claimed it was difficult accessing the funds early enough, especially the money for feeding of the boarding students at the beginning of the term.
MDAs advertise bank accounts
Vanguard investigations also reveal that some of the MDAs even advertised bank accounts for collection of sundry fees. For example, University of Port Harcourt in advertisement published in Punch Newspaper on Monday June 20th, 2016, page 41 stated, “Application fee of fourteen thousand naira should be paid online at any of the following banks: U&C Microfinance Bank, UBA, Union Bank, Access Bank, Ecobank and First Bank”.
Similarly, Federal Polytechnic Kaura Namoda, Zamfara state, advertised in Punch Newspaper June 20th 2016, page 45, stating, “Application forms in respect of programmes in 1.0-4.0 are obtainable from the following centers on presentation of non-refundable fee of Two thousand nine hundred naira (N2, 900). Ecobank Plc Kaura Namoda; Ecobank Plc Gasau, Zamfara; Access Bank Bida Road, Kaduna, Kaduna state; Access Bank, Katsina, Katsina State; Access Bank Sokoto, Sokoto State; Access Bank, Kano, Kano State, Access Bank Dutse, Jigawa State”.
The Upper Niger River Basin Development Authority, an MDA under the Federal Ministry of Water Resources also advertised its Keystone Bank account. In an advertisement titled, “Request for Expression of Interest/Invitation to tender for projects under the Authority’s Year 2016 Appropriation, published on June 20th, page 48, Punch Newspaper, the agency said, “Payment of Non-Refundable Tender fee should be made into the following bank details: Account Name: Upper Niger River Basin Development Authority, Minna; Bank Name: Keystone Bank; Account Number: 1001165435”.
It is illegality-CBN
But a top official of CBN describes such accounts as illegal. “Speaking under condition of anonymity, he said: “No MDA is permitted to have any account with any bank and for any purpose. Doing so amounts to illegality. We are aware of incidences of some MDAs using pseudo names to open and operate bank accounts. It is criminality that will attract severe sanctions”.
Another CBN staff who spoke to Vanguard on condition of anonymity confirmed this development saying what some MDAs do is to have an arrangement with a bank to open a bank account either with a pseudo name or with name of one of the officials of the MDA. “Whenever anybody comes to make payment in the name of the MDA, the money will be paid into the account without the knowledge of the payee”.
Provision Accounts for Special purpose
Though the TSA guidelines make provision for MDAs to have sub-accounts for special purpose, such accounts are however supposed to be domiciled with the CBN.
The guidelines from the OAGF stated, “Where a donor to an MDA requires that a separate account be maintained for the purposes of managing such funds, a Donor Fund Sub Account will be opened at CBN for that purpose. All counterpart fund accounts are to be domiciled at the CBN. All Donor and Counterpart Fund Accounts are to be linked to the TSA as Sub Accounts. Spending from such accounts will be based on approved budget.
“There are situations where some fully or partially funded MDAs (eg Universities, other tertiary educational and health institutions) raise funds through fees, donations, endowments and sponsorship for specific tasks like sports, research, prizes, trainings and workshops. Any fully funded MDA with such arrangement is to apply to the OAGF for approval to operate TSA Sub Account at the CBN for such purpose. All such applications will be accompanied by details of sources of funding and proposed spending plan.
‘MDAs are not allowed to transfer funds from their CBN Sub Accounts to commercial banks or other financial institutions before spending. All payments are to be made from the CBN Sub Accounts directly to beneficiaries. The Monitoring and Enforcement Team will ensure that any act of non-compliance is detected and sanctioned. The use of multiple Sub Accounts at CBN is not encouraged. MDAs are advised to use relevant books of accounts to keep track of different receipts and payments.”
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%.
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
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.”
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