El-Rufai orders banks to close all Kaduna’s accounts, remit balance to CBN

Hehehe....Ahead of the implementation of Kaduna state’s Treasury Single Account, TSA, framework by the first of September this year, the state governor, Mallam Nasir El-Rufai has directed all banks with accounts of the state government to close them.

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The governor who further explained that the decision was part of the process of attaining the TSA, said all banks that maintain the accounts of the government have not only been put on notice to close them, but have also been asked to remit the balances to the Central Bank of Nigeria, CBN, which will host the state’s TSA.
A statement issued on Thursday by the Special Assistant to the Governor on Media and Publicity, Samuel Aruwan, saysthat the directive was given at a meeting with officials of all the banks hosting the state government’s revenue and expenditure accounts. The meeting was also attended by the Kaduna State Branch Comptroller of the CBN.
El-Rufai went on to disclose that after the establishment of the TSA, the state government will open specified sub-accounts with the CBN and the commercial banks.
“The banks’ officials present assured the governor that within five working days of receiving the formal instructions from the state government, they will close the accounts and remit the balances to the TSA,” he said.
While commending the banks for their continued support, the Governor assured them that a session will be organized to explain to the banks how the new TSA and the sub-accounts will work.
The statement, which disclosed that selected revenue-holding accounts will be excluded from this directive, revealed that the government will publish needed Treasury Circulars and other instructions to give effect to the decisions.