CBN Slams Hefty Fines On Two Prominent Banks For Withholding NNPC Funds From TSA

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In fulfilment of its threat to sanction commercial banks who failed to remit government revenue to the treasury single account (TSA), the Central Bank of Nigeria (CBN) has fined FirstBank and UBA a combined N4.819 billion for withholding NNPC funds from the TSA.

According to a circular obtained from banking industry sources, while the CBN imposed a penalty of N1,877,409,905.12 on First Bank of Nigeria Limited, United Bank for Africa Plc was fined N2,942,189,651.45 for its failure to comply with the federal government’s policy.

An industry source explained that FirstBank concealed N37,548,198,102.41 belonging to the Nigerian National Petroleum Corporation’s (NNPC) instead of remitting it to the TSA as directed, Thisday reports.

On the other hand, UBA concealed N58,843,793,029.05 of NNPC funds, which attracted the penalty.

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The source explained that the penalty was the equivalent of five per cent of the funds they failed to remit respectively.

“The accounts of both banks with the CBN have been debited for the unremitted amounts and the penalties,” she added.

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