It seems President Muhammadu Buhari talk of killing corruption before it kills Nigeria is no joke after all. The President has ordered that all Federal Government Ministries, Department and Agencies (MDAs) are now to run a single account, the Treasury Single Account (TSA) for all revenues, incomes and other receipts.
President Buhari gave this order for MDAs to open TSA for all revenues, incomes and other receipts yesterday in a bid to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution, according to Laolu Akande, Senior Special Assistant to the Vice President, Media & Publicity.
“Henceforth, all receipts due to the Federal Government or any of its agencies must be paid into TSA or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved.” he said while giving a press statement on Sunday.
Agencies affected by this directive include all governmental organs which are fully funded by the government such as, Ministries, Departments, Agencies, Federal Tertiary Institutions, Federal Teaching Hospitals and Medical Centers, etc.
Agencies and commissions that are fully or partially self-funding such as the Security and Exchange Commission (SEC), Federal Airport Authority of Nigeria (FAAN), Nigeria Ports Authority (NPA), Corporate Affairs Commission (CAC), Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC), Nigerian Civil Aviation Authority (NCAA), Department of Petroleum Resources (DPR), Federal Inland Revenue Service (FIRS), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria National Petroleum Corporation (NNPC), Nigeria Deposit Insurance Corporation (NDIC), National Safety Council (NSC), Nigeria Computer Society (NCS), Mining, Minerals and Sustainable Development (MMSD), etc are not exempted rather Sub-Accounts linked to TSA are to be maintained at CBN and the accounting system will be configured to allow them access to funds based on their approved budgetary provisions.
The TSA is a unified structure of government bank accounts enabling consolidation and utilization of government cash resources. This is to ensure transparency and accountability in the operations of public accounts. It can be a singular bank account or a set of linked accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time. The account will be domiciled at the CBN.
According to Laolu, the presidential directive would end the previous public accounting situation of several fragmented accounts for government revenues, incomes and receipts, which in the recent past has meant the loss or leakages of legitimate income meant for the federation account.
Obviously, this policy on TSA is intended to curb the financial excesses of some MDAs that have been refusing to remit their earnings deposited in commercial banks to the Federal Government which is constrained to go a borrowing from banks on high interest However this policy was also pursued by the immediate past government, when it introduced the electronic collection platform which was unveiled in January for revenue generating agencies. The then Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the move would help the central bank to effectively manage the funds of the government, even though some MDAs, refused to key in.