El-Rufai orders banks to close government accounts

Nasir el-Rufai, governor of kaduna state, has directed banks with accounts of the state government to close them and remit the deposits to the Central bank of Nigeria (CBN).

The governor explained that the decision was being taken ahead of the commencement of the implementation of the Treasury Single Account (TSA) framework by September 1.

“As part of the process of attaining this goal, all banks that maintain the accounts of the government have been put on notice to close them and remit the balances to the Central Bank of Nigeria which will host the state’s TSA,” read a statement issued by Samuel Aruwan, special assistant to the governor on media and publicity, on Thursday.

Arunwa said the establishment of the TSA, the state government would open specified sub-accounts with the CBN and the commercial banks.

“The banks present assured the governor that within five working days of receiving the formal instructions from the state government, they would close the accounts and remit the balances to the TSA,” the statement read.

“While thanking the banks for their continued support, the governor assured them that a future session would be held to explain to the banks how the new TSA and the sub-accounts will work.

“Selected revenue-holding accounts are excluded from the directive.

“The government will publish needed treasury circulars and other instructions to give effect to these decisions.”