No government ministry, department or agency had been exempted from the recent directive on the Treasury Single Account policy introduced by the Federal Government, the Central Bank of Nigeria, CBN, governor, Godwin Emefiele, has said.
The governor, who was speaking in Abuja on Tuesday on the outcome of the two-day Monetary Policy Committee meeting, said so far he was not aware of any other directive countering the previous instruction to all government agencies to remit all revenues to the TSA account with the CBN.
“As at today, the CBN has not received any memo from any quarters exempting any organisation from the directive on TSA”, the CBN governor said. “Let me urge all government agencies to ensure that they complied fully with the directive to ensure its success.”
He said the impact of the TSA policy on the economy so far showed that the amount of funds moved from the commercial banks to the CBN since the policy commenced about a weeks ago had been moderate, contrary to reports that it had triggered liquidity squeeze.
Although he acknowledged that there have been a lot of speculation in the market, he said as an on-going exercise, the impact of the policy would continue to grow as time goes.
“The data that the committee (Monetary Policy Committee) reviewed between yesterday and today showed that liquidity ratio in the banks have decreased moderately.
“That is why the committee came up with the conclusion that the impact of the movement of funds from the CBN on liquidity is sort of moderate.
“The liquidity ratio showed that Nigerian banks are safe,” he said.
Mr. Emefiele said the CBN would continue to monitor the liquidity of the banks to make sure that they did not slide into difficult terrain.
As widely expected before the meeting, Mr. Emefiele said the meeting had resolved to retain the lending rate by banks, otherwise known as Monetary Policy Rate, MPR at 13 per cent, while the Cash Reserve Ratio, CRR on private and public sector deposits was reduced from 31 per cent to 25 per cent.
The other resolution at the meeting was retaining the symmetric corridor of +/- 200 basis points around the MPR, while liquidity ratio was put at 20 per cent as part of efforts to tighten liquidity condition in the banking sector to cushion the impact of the TSA policy.