Monday, September 21, 2015 10.59 AM / Proshare Research
We now understand that the Office of the Accountant-General of the Federal Republic of Nigeria has granted an exemption to thirteen MDAs in line with the e-collection and mop up exercise by the federal government.
The exempted MDAs are profit oriented government business entities that pay dividends to the Federal Government of Nigeria.
The entities exempted are:
1. Nigeria National Petroleum Corporation
2. Power Holding Company of Nigeria
3. Bank of Industry
4. Nigeria Railway Corporation
5. Federal Mortgage Bank of Nigeria
6. Bank of Agriculture
7. Niger Delta Power Holding Company / National Integrated Power Project
8. National Communication Satellite Limited
9. Galaxy Backbone Ltd
10. Ajaokuta Steel Company Ltd
11. Urban Development Bank
12. Nigerian Export – Import Bank
13. Transcorp Hilton Hotel
The validation for this information comes vide a circular from the AGF’s office to the The Director, Central Bank of Nigeria, Banking & Payments System Department, referenced FD/LP2015/C/ADC/20/1/ /DF dated September 14, 2015 and authored by M K Dikwa, mni , for the Accountant-General of the Federation, Federal Ministry of Finance, Funds Department, Abuja, FCT.
Find below the contents of the circular as sighted:
APPROVAL TO EXEMPT SOME MDAs INLINE WITH THE e-COLLECTION MOP-UP EXERCISE
Approval is hereby granted to your bank to exempt the Accounts of thirteen (13) MDAs (Category 6) as listed below the mop-up in line with the e-Collection Circular No. HCFSF/428/S.1/120 dated 7th August 2015 as these are Profit Oriented Government Business entities that are to pay their dividends into the Treasury Single Accounts Whenever there are declared.
Please note that in line with the Presidential approval, the following as it relates to Nigeria National Petroleum Corporation NNPC as listed above (S/No.9) under Category 4 should also apply:
i. That NAPIMS remains classified as an MDA that is funded from the Federation Account under Category 4 of the Circular, being the NNPC Business Unit responsible for the management of the Federation’s investment in the upstream activities and funded from direct proceeds of oil and gas revenue.
ii. That NNPC will continue to preserve the status with respect to NAPIMS Operations Account as well as Escrow Account for Third Party Financing in view of the Joint Venture (JV) Cash funding currently being experienced.
iii. That all other NNPC’s commercial/Business Entities as re-classified as ‘Profit-Oriented Public Corporations/Business Enterprises’ under Category 6 of the Circular which requires that only dividends from these entities be paid into the TSA.