President Muhammadu Buhari has given all ministries, departments and agencies (MDAs) of the Federal Government a marching order to comply with the instructions on the Treasury Single Account (TSA) by September 15, 2015 or face sanctions.
In a circular issued on Friday, September 4, 2015 by the Head of the Civil Service of the Federation, Mr. Danladi Kifasi, the president expressed displeasure that the MDAs were not complying with the directives.
Kifasi said in the circular, “it was observed that a number of MDAs are yet to comply with the directive.”
President Buhari had on August 9 ordered every Federal government ministries, departments and agencies to start paying into a Treasury Single Account (TSA) for all government revenues, incomes and other receipts.
An earlier circular is- sued by the Head of the Civil Service of the Federation on August 7, 2015, announced the introduction of the TSA with the directive that all receipts due to the Federal Government or any of her agencies are to be paid into the Federal Sub-Treasury account maintained in the Central Bank of Nigeria (CBN).
The implementation of the TSA, according to the circular, is expected to aid transparency and facilitate compliance with Sections 80 and 162 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).
TSA is a unified structure of bank accounts enabling consolidation and optimal utilization of government’s cash re- sources. It is a bank account or a set of linked bank accounts through which government transacts all its receipts and payments and gets consolidated view of its cash position at any given time.
The president’s directive is expected to end the previous public ac- counting 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. According to experts,TSA consists to concentrate all government funds on one account for its proper management. In other words, it is an instrument put in place to control government finance resources and expenditures. It ensures complete, real time information on government cash resources and improves operational and appropriations control.
Therefore, with the implementation of TSA, 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. -Sun