TSA policy anti-employment, South, says group

unemploymentHUMAN Rights Writers Association of Nigeria (HURIWA) has alleged that the Treasury Single Account (TSA) policy by the Federal Government for all federal agencies is a well plotted landmine aimed at crippling the banking sector.

The group, in a statement, cautioned against hasty implementation of the TSA directive by federal agencies because of the inevitable mass retrenchment of bank workers that would follow the pullout of huge public funded deposits in most of the commercial banks for onward transfer to the Central Bank of Nigeria (CBN).

It alerted that the unemployment that will soon sweep across the banking sector would have “no regional immunity as every family would be affected thereby rubbishing the real evil intentions which actually guided the TSA policy in the first instance. This policy is like throwing a stone in a market place without knowing whether it will actually harm the mother of the stone thrower.”

The group accused the Arewa Consultative Forum and an erstwhile CBN chief for plotting to undermine the economy by successfully convincing President Muhammadu Buhari to flow along with their plot by introducing single accounts for all federal agencies to be domiciled in the CBN with the subterranean tendencies to precipitate the collapse of the banks and weakening the alleged lopsided ownership of the banking institutions by persons perceived to be southerners.

The rights group claimed it had it on good authority that this current irrational and impulsive policy of single account formed a fulcrum of the economic blueprints allegedly handed over to the new President upon assumption of office by some regional hawks from the Northern Nigerian based Arewa Consultative Forum who now has its erstwhile General Secretary Colonel Hamid Ali (rtd) as the Comptroller-General of Nigeria Customs Service.

Fearing that this single account policy has started yielding its downsides by way of mass retrenchment of bankers by commercial banks, the group has called for a review of this policy to forestall the eventual compounding of the dire economic hardship afflicting millions of Nigerian households.

According to the group: “The President must be cautioned to stop the implementation of a hasty policy designed only for regional vendetta and targeted at economically weakening some investors only because they come from the Southern segments of Nigeria and by so doing exposing the Nigerian economy to large scale unemployment and job cuts which will inevitably affect every home because virtually every family has someone who works in the banking institution or depends on income from someone else who works in the bank. Since President Muhammadu Buhari announced this Single Account policy a lot of bank workers especially the youths have lost their jobs.”

The group said Zenith Bank for instance has allegedly downsized its staff strength even as other commercial banks are about now bringing out their anti-employment policies because of the adverse effects of the withdrawal of huge funds by government agencies and the closing of these accounts for subsequent transfer to Central Bank of Nigeria.

It added: “This policy will further expand the frontiers of social crimes and vices of youth prostitution and violent criminal activities since the idle mind is the devil’s workshop. The Federal Government must review this directive because pulling out government funds from banks will backfire because interest rates for borrowings will skyrocket since there will be scarcity of funds from which to lend to small, medium scale and large scale entrepreneurs in Nigeria and this would stifle the manufacturing and job sectors.

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  • Rev

    I am hoping Mr. Buhari is not going to implement policies that will bedevil Nigeria long after he’s gone to meet his maker…
    May God grant him wisdom…

    • Lanre Adelanwa Basamta

      It might be good to do some research on your own instead of accepting as truth the weak attempt of vested interest to rubbish a wholesomely positive policy!

      Some pertinent questions to ask though: President Jonathan himself midwifed this policy as way to curb sleaze and corruption in government. Is he a member of the ACF also or was he playing out their plot as alleged in this article?

      Secondly,if you consider the naked merits of policy which will help government have an integrated outlook of its financial position and avoid needless borrowing of government from itself, are those not enough consideration for adopting this policy instead of querying the source and promoters of the policy.

      Finally, i know there are direct implications for adopting this policy, and i am aware that according to Vanguard, the TSA policy will mop about 2Trillion Naira away from the vaults of Nigerian banks, but would you rather perpetuate this madness and allow for the continual underdevelopment of Nigeria as the behest of a few or let the sector/Nigeria experience some temporary discomfort so that our banks can thrive on clean banking and investment while government have enough money to transform the nation.

      Bottomline, my thoughts are, dont swallow everything you hear or read without some-bit of research so you can speak from an informed position.

      TSA can really be a positve game changer if implemented rightly.


      • emmanuel kalu

        very well said. it is a very positive step taken by the govt and it needs to be supported.

      • Rev

        ”…If implemented rightly…”

  • emmanuel kalu

    PURE RUBBISH. No viable commericial bank should ever depend on govt funds to be in operation. And in nigeria, it was the reason this banks weren’t lending or operating in the real sectors. all banks were doing is making money from marketers, from state govt and from MDA’s. now the banks have to go compete in the real sector for growth. TSA is a huge step in the prevention of looting.

  • Burbank

    That the Guardian and the writer Adamu Abuh could have published such rubbish reflects on the dearth of ideas in the editors of The Guardian.