Ads Top

Informed opinion on TSA and allied matters

By Anogwi Anyanwu (First Class Banker)

"The Senate is within its rights to probe this matter, grandstanding or not. The President is within his authority if he asks that the charges be put on hold until he is properly briefed as to what was going on. Systemspecs is also entitled to its fees.

However, I think there are lessons for everyone on this matter. We should not indulge in the general blame game and biased justifications. We cannot justify that any one in government can sign an agreement that transaction charges of 1% be deducted for Funds Transfers because the volumes were low. Even if the volumes were low at the time the agreement was signed, we must note that the intention of TSA was that all governmental funds transfers will go through that platform and the volumes were expected to be high.

Systemspecs platform for the TSA is not the only Funds Transfer platform in Nigeria. Cheques Clearing, NIBSS Instant Pay, RTGS and other Funds Transfer platforms have been running for a while all of them have upper limits on their transaction charges. Why should the TSA not have an upper limit. The transaction charge of 1% ( or ist it 0.1%) is unacceptable if there is no upper limit.
Customs and FIRS have been involved in funds transfers for a long time since they started doing their collections through banks? What have been their transfer charges? COT which was 0.5%(N5 N1,00) has been reduced to N1 per N1,000(0.1%) this year and will be phased out next year.

Even in Real Estate transactions, lawyers and estate surveyors usually accept a lower rate for their charges if the transaction value is high. If we signed the agreement without reading it , now is the time to go and review it because the real use of TSA is that all government money will be kept in CBN while payments will be made from there.

Any inflows into those accounts and any outflows from them will be subject to transaction charges and those flows are huge. For once let us look at what is good for the nation rather than what is in our individual interest."
Informed opinion on TSA and allied matters Informed opinion on TSA and allied matters Reviewed by Emeka Oparah on Friday, November 27, 2015 Rating: 5

No comments

Please note that Wilberforce is not responsible for your comments. Thank you.