E-Financial
TSA: Why Nigerians Must See the Bigger Picture
It is often said that Nigerians are resilient and can ‘suffer and smile’ their way through any situation, however tough. Maybe so.
Recently, the International Monetary Fund (IMF) painted a gloomy picture when it forecast that the Nigerian economy was likely to contract by 1.8 percent this year. Central Bank of Nigeria Governor Godwin Emefelie’s prognosis was no less dire.
He disclosed that Nigeria was experiencing economic stagflation, which is a euphemistic way of admitting the economy is experiencing little or no growth, resulting in high rates of unemployment, inflation and a decline in Gross Domestic Product (GDP).
Already, the prices of foodstuff, transportation, shelter and other basic necessities are at an all-time high. No one needs to be reminded that massive unemployment only means an increase in social vices.
After all, Nigerians have their hands full struggling to make ends meet amidst one of the toughest economic downturns they have ever experienced.
In situations like this, Nigerians are quick to trade blames rather than see the big picture.
Some groups and individuals are already blaming the parlous economy on the Federal Government’s implementation of the Treasury Single Account (TSA) policy. I beg to differ.
It is ironic how a policy that eliminates the diversion of public funds by stipulating that all revenue receipts and payments conducted by Ministries, Departments and Agencies (MDAs) be deposited into a Consolidated Revenue Account (CRA) can actually have negative implications for the economy.
Rather, we should blame previous administrations for not implementing such a policy sooner, leaving much room for corruption which well-nigh left the treasury empty during the inception of this administration.
It is also questionable to blame banks’ liquidity problems on the adoption of the TSA policy. After all, we want a banking system that is strong enough to power the economy and keep our investments safe.
So there is absolutely no justification for Diamond Bank to lay off 200 staff, Ecobank 1,040 and FBN Holdings a projected 1000 just because the new policy stipulates that Deposit Money Banks (DMB) remit the revenue they receive from MDAs to the CRA at the close of every banking day.
A strong banking system cannot be built on profit generated from cash deposits left stagnant while the government is starved of funds meant for capital and other projects.
What this dire situation calls for is that Nigeria urgently diversify its economy away from crude oil.
Information and Communication Technology (ICT) is the veritable tool for economic growth that many other forward-looking nations of the world have adopted. According to statistics, India raked in a whopping $75 billion from its software exports between 2014 and 2015, and is continuously registering double-digit annual growth in the process.
At the World Economic Forum (WEF) in Kigali earlier this year, South African Deputy President Cyril Ramaphosa reportedly assured potential investors of positive returns on their investments in South Africa’s infrastructure and ICT sectors. He emphasised that such innovative partnerships could help bridge the financing gaps for economic and social infrastructure.
Nigeria cannot afford to lag behind if we must move forward.
Ours is a country that boasts several homegrown ICT companies and initiatives that show much promise and can be encouraged. For the record, Glohas beat the odds to become a powerhouse in telecoms; while Paga and eTranzactare two ePayment systems that have made a difference on the Nigerian economic landscape.
More crucially, the revolutionary TSA policy adopted by the Federal Government was invented and continues to be powered by indigenous software giant SystemSpecs, using its software Remita.
According to recent reports, the software has already saved the government up to N3 trillion in the first quarter of 2016 alone and has the potential to do more.
Recently, Minister of Information and Culture, Lai Mohammed admitted that the judicious management of the TSA has helped advance the President Muhammadu Buhari administration’s fight against corruption and saved Nigeria from imminent collapse. He maintained that this administration had managed scarce resources prudently, thanks to TSA, the anti-corruption fight and elimination of ghost workers. All of this can only be good for brand Nigeria as a reference point for something other than corruption and terrorism.
So rather than throw the baby away with the bathwater, we must begin to appreciate the positive changes in our payment landscape. If change is to happen, sacrifices must be made urgently and that includes economic diversification in favour of ICT.
Article written by Femi Aderemi, a Warri-based ICT enthusiast
E-Financial
First Securities Brokers Empowers Nigerians to Trade in the Stock Market with the Launch of FirstInvest App
First Securities Brokers, one of Nigeria’s leading stockbroking firms and a subsidiary of FirstHoldCo Plc, is pleased to announce the official launch of the FirstInvest App, an innovative mobile investment platform designed to make stock market investing simpler, faster, and more accessible for Nigerians.
The FirstInvest App offers investors a seamless digital experience, enabling them to open and manage their investment accounts, monitor their portfolios, and trade equities listed on the Nigerian Exchange (NGX) directly from their mobile devices.
Designed with both new and experienced investors in mind, the platform combines convenience, security, and ease of use to help users make informed investment decisions anytime and anywhere.
As Nigeria continues to embrace digital financial services, the FirstInvest App reinforces First Securities Brokers’ commitment to driving financial inclusion and expanding access to wealth creation opportunities through technology.
Speaking on the launch, Fiona Ahmed Ahimie, Managing Director of First Securities Brokers, said: “The launch of the FirstInvest App represents another significant milestone in our digital transformation journey and our commitment to delivering innovative investment solutions to our clients.
“We understand that today’s investors value convenience, speed, and accessibility. FirstInvest has been developed to provide exactly that: a secure and intuitive platform that empowers individuals to participate confidently in the capital market from wherever they are.”
She added: “Our goal is to remove the traditional barriers associated with investing by placing the power of timely investment and decision making in the stock market directly in the hands of Nigerians. Whether you are taking your first investment step, actively managing your portfolio or just evaluating your investment, FirstInvest provides the tools and flexibility needed to support your financial aspirations.”
The app delivers a range of features designed to enhance your investing experience, including: Secure digital account opening and onboarding, Real-time access to investment portfolios, Buy and sell Nigerian equities with ease, User-friendly trading interface, Secure transaction processing, Convenient access to market information and investment opportunities.
The launch of FirstInvest aligns with First Securities Brokers’ broader strategy of leveraging technology to improve customer experience while supporting the growth of retail participation in Nigeria’s capital market.
First Securities Brokers remains committed to providing trusted investment advisory services, innovative financial solutions, and exceptional customer service, helping clients build and preserve wealth across generations. The FirstInvest App is now available for download on the Google Play Store and the Apple App Store.
The next currency crisis could accelerate the shift of the roughly $315 billion global stablecoin market into a digital-dollar alternative for citizens in emerging economies, notably in regions like sub-Saharan Africa and Latin America.
As local fiat currencies face devaluation and high inflation, citizens and businesses are increasingly utilizing smartphone-based stablecoins (such as USDT and USDC) as hedges and primary mediums of exchange.
According to the International Monetary Fund (IMF), the rapid adoption of dollar-linked digital assets—particularly in countries heavily affected by inflation like Nigeria—poses significant risks to monetary sovereignty.
With up to 95% of surveyed individuals in some African markets preferring to receive payments in stablecoins over local fiat, the rising volume of these decentralized, cross-border channels weakens domestic currency demand and dilutes the effectiveness of local monetary policy.
IMF observed in a report titled “Stablecoins in Nigeria: A Growing Cross-Border Channel” noted that the widespread use of stablecoins poses risks to monetary sovereignty, particularly as more individuals and businesses turn to digital dollar-linked assets for savings and transactions.
Nodding in agreement is Future Investment Initiative Institute (FII Institute), a non-profit organisation run by the Public Investment Fund, Saudi Arabia’s main sovereign wealth fund.
FII Institute said that central banks face structural challenges.
And according to the institute, when citizens move savings out of national banks and into private digital wallets, conventional capital controls lose their grip.
Institutions like the Bank for International Settlements warn that interest-bearing stablecoins compete directly with domestic-currency deposits, complicating financial oversight and making smartphone-based transfers incredibly difficult for authorities to monitor.
In Nigeria, Naira depreciation has pushed users toward dollar-stablecoins, according to report by Gino Matos in cryptoslate.com.
A stablecoin is a type of cryptocurrency designed to maintain a steady value by pegging its price to a reserve asset, such as a fiat currency (e.g., the U.S. dollar) or a commodity (e.g., gold).
They act as a bridge between traditional money and the digital asset world, providing the speed of crypto without the extreme price swings of assets like Bitcoin.
Federal government has reopened three federal government of Nigeria (FGN) bond issues valued at N1.2 trillion for subscription as part of efforts to raise long-term funds from the domestic debt market.
The Debt Management Office (DMO), which announced the offer on Tuesday, said the three reopened bond issues are each valued at N400 billion.
According to the DMO, the first offer is the January 2035 FGN Bond, a 10-year reopening, carrying an interest rate of 22.60 per cent per annum.
The second is the May 2028 FGN Bond, a 15-year reopening, with a coupon rate of 15.45 per cent per annum, while the third is the June 2037 FGN Bond, a 20-year reopening, also valued at N400 billion.
The office said the bond auction is scheduled for July 20, while successful subscriptions will be settled on July 22.
It explained that the bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and additional investments in multiples of N1,000.
For the reopened bonds, the DMO said successful bidders would pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
Interest on the bonds will be paid every six months, while the principal will be repaid in full on the respective maturity dates.
The DMO reaffirmed that FGN bonds are backed by the full faith and credit of the Federal Government and constitute obligations chargeable on the general assets of the federation.
It added that the bonds qualify as trustee investment securities under the Trustee Investment Act and enjoy tax exemptions for eligible investors, including pension funds, under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange and also qualify as liquid assets for banks in computing their liquidity ratios.
FGN bonds are long-term debt instruments through which investors lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal at maturity.
NBC Scraps Annual Digital Access Fee on DSO
Surge in Fibre Cuts Hobbles Service Provisioning
Why Bandits, Kidnappers are Hard to Trace despite NIN-SIM Linkage – FG
First Securities Brokers Empowers Nigerians to Trade in the Stock Market with the Launch of FirstInvest App
Quest Merchant Bank Hosts Great Place to Work® Nigeria Study Mission
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Nigeria Launches FreeTV Nationwide
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Lebara Nigeria Launches Lebara Play, Africa’s First Telecom-Owned Micro-Drama Platform
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
Telecom3 days agoMTN Nigeria Slashes Cost of Broadband Internet Router, Unwraps New Data Bundles for Low-Budget Users
E-Financial3 days agoNigerians Accumulate $59Bn in Cryptocurrency Assets —FDC
E-Financial3 days agoFlutterwave Partners Xoom on Transfers into Nigeria
General News3 days agoNearpays, Nigerian Fintech Becomes First African Startup to Win UN’s AI for Good Innovation Factory
News3 days agoDataPro Upgrades Dangote Cement’s Credit Rating to AA+
Telecom3 days agoNokia’s 14 Years of Mobile-Phone Supremacy Ended in an Afternoon
E-Business3 days agoTinubu Orders NIMC to Enrol Every Nigerian by End of this Year – DG
General News3 days agoFintech Brands Should Communicate Right in a VUCA Economy