Nigeria's says TSA drains less cash from banks than speculated

The central bank said the amount transferred from the banking system to government treasury Single Account (TSA) was less than the figures being speculated by some analysts.
Some analysts had put the amount transferred from the banking system at around 1.2 trillion naira or 10 percent of banking system total deposits, However a banker says the amount actually transfer was in the region of 345 billion naira.
Dapo Olagunju, head of treasury Access Bank said on a TV programme that net cash transferred was about 2.5 billion naira in the course of moving government revenue to a single account at the central bank.
"TSA is an ongoing exercise, the data review by the committee (MPC) show that liquidity ratio of banks increased moderately. The impact of TSA is moderate on banks," Godwin Emefiele said.
He said "Nigerian banks are safe, Nigerian banks are very strong ... we will continue to monitor their activities,"
"The Committee noted that liquidity withdrawals following the implementation of the TSA, elongation of the tenure of state government loans as well as loans to the oil and gas sectors could aggravate liquidity conditions in banks and impair their financial intermediation role, thus affecting
economic growth, unless some actions were immediately taken to ease liquidity conditions in the markets," Emefiele said at the MPC meeting on Tuesday..