The Central Bank of Nigeria (CBN) on Thursday, March 3 said that some individuals kept 20 billion dollars in different domiciliary accounts blaming the decline naira value to the decision of few individuals in the country.
Dr. Joseph Nnana , the Deputy Governor of Central Bank on Financial System and Survelliance disclosed this known during an interactive session of National Assembly joint committee on appropriation over 2016 budget chaired by Danjuma Goje.
He said that there will be disappointments when the 2016 budget is finally passed because the CBN will embark on aggressive liquidity mop-up to enable naira regain confidence.
He added that the devaluation of naira is the fault of individuals who are speculating on the dollars to the detriment of naira.
“Why should we have individuals that have $20 billion in different domiciliary account idle. Volatility in exchange will not continue after the passage of 2016 budget.
“Those who speculate on naira we have their fingers burnt by that time because we are going to embark on aggressive liquidity mop-up to make the naira stronger,” he said.
While responding to questions on why the federal government failed to factor in the transfers into the 2016 budget, Kemi Adeosun, the Finance Minister said that the Treasury Single Account has hit 2.9 trillion naira.
She also said it was impossible to fund budget with TSA, noting that the account is not static as money goes in and out of it.
Adeosun added that the federal government has recently opened the TSA to agencies for access, noting that only the universities are yet to have access to their monies.
According to her, opening up the account to the agencies have become compelling because they need money to fund their operations.
“There was 2.9 trillion naira in the TSA. Money goes in and out of the account. Some of the monies belong to So you can’t mop up the monies and say ‘let’s use it to fund budget.We need to understand the breakdown of the balances.
“It is wrong to start sweeping the monies and leave the agencies unable to operate. We have opened a window for the agencies to access the TSA. Every agency now has a sub-account through which they access the TSA.
“Only the universities are yet to have access. TSA doesn’t pay interest. Some of them want to invest their monies. We looked at those things to find windows for them to invest monies. Now everybody has to move payment and it is working very well. Agencies spent 99.9 percent of their monies before.
“Now, we ask what do you want to use for Internal Generated Revenue (IGR) for? Must you use it? It is important to get revenues so that real agencies can come to account,” she said.
However, Senator Danjuma Goje , the Chairman, Senate Committee on Appropriation stressed that the passage of the budget will not exceed March 17 fixed by the National Assembly.
He explained that the meeting was called in order to finalise everything pertaining to the passage of the budget.
President Muhammadu Buhari, on Tuesday, December 22, presented the 2016 budget of 6.08 trillion naira to a joint session of the National Assembly.
The budget presentation by Buhari was on the heels of the approval of Medium Term Framework Expenditure (MTEF) by the National Assembly which was approved by the Senate.
Although the 2016 budget is an increase of about 40 percent from the previous budget of 4.3 trillion naira which was presented to the National Assembly in 2014 by former president Goodluck Jonathan’s administration, some believe the budget is that which represents change and hope while most people say it is not a budget of change.