THE Central Bank of Nigeria, CBN, yesterday, increased the number of institutions excluded from sanctions associated with its cashless policy, with the exemption of all foreign agencies and missions in the country from adhering to the new rule on cash transaction.
CBN, in a circular to all stakeholders in the cashless policy project, entitled, ‘Industry policy on retail cash collection and lodgment (IITP/C/001) as it affects specialised international institutions,’ said this becomes necessary following the various treaties in which Nigeria is signatory to, which exempts these institutions from all fees and charges in their host countries.
In a statement, Mr. Gaius Emokpae, Ag Director, Banking and Payments System Department, CBN, said, therefore, that it has exempted all embassies, diplomatic missions, multilateral and aid donor agencies in the country from penalties and charges on cash withdrawal and deposits with regard to the policy.
He said, “Nigeria is a signatory to several treaties which exempts these institutions from all fees and charges in the host country. As a matter of fact of international practice, sovereign states do not impose financial penalties on other sovereign states; it has become necessary, therefore, to extend the exemption on cash withdrawal/deposit to these institutions.”
FG overspent by N365.06 bn.
Meanwhile, the Federal Government overspent by N365.06 billion in the fourth of last year while the economy grew by 7.7 per cent. CBN said this in its economic report for the fourth quarter of 2011 released yesterday.
The report stated, “Federal Government retained revenue for the fourth quarter of 2011 was N587.71 billion, while total expenditure was N952.77 billion.
Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N365.06 billion or 3.7 per cent of estimated nominal GDP for fourth quarter 2011, compared with the deficit of N161.13 billion and N715.88 billion for the preceding quarter and the corresponding quarter of 2010, respectively.
“Total federally-collected revenue in the fourth quarter of 2011 stood at N3,025.10 billion, representing a decline of 9.1 per cent from the level in the preceding quarter, but an increase of 31.3 and 51.7 per cent over the budget estimate and receipts in the corresponding period of 2010, respectively.