FG Records N5.244tr Flows Into TSA, Saves N4.7bn Monthly In Bank Charges

FG Records N5.244tr Flows Into TSA, Saves N4.7bn Monthly In Bank Charges

The Federal Government, on Monday said it recorded N5.244tr inflow into the Treasury Single Account (TSA), between September 15, 2015, when it became operational and February 10, 2017.

The operationalization of the TSA came into effect through a directive by President Muhammadu Buhari on August 7, 2015, directing all Ministries, Departments and Agencies (MDAs) to close their accounts with Deposit Money Banks (DMBs) and transfer their balances to the Central Bank of Nigeria on or before September 15 of that year.

The TSA is a public accounting system that enables the government to manage its finances (revenues and payments) using a single/unified account, or series of linked accounts domiciled at the Central Bank of Nigeria — has resulted in the consolidation of more than 20,000 bank accounts previously spread across DMBs in the country.

It also allows managers of the Federal Government’s finances, including the Ministry of Finance and the Office of the Accountant-General of the Federation, access to the comprehensive overview of cash flows at any point in time across the entire government.

“It also ensures increased transparency in public financial management, as well as prevents a scenario in which some MDAs have idle cash while other MDAs are compelled to borrow exorbitantly from DMBs.”

As at December 2016, 766 MDAs were TSA-compliant, the report noted, that “the Ministry of Finance continues to fine-tune the system to improve its efficiency, and has also commenced an audit to ensure that all funds due to the TSA are remitted into it.”