President Muhammadu Buhari has directed all federal Ministries, Departments and Agencies (MDAs) to open and operate a unified Treasury Single Account (TSA) for all government revenues, incomes and other receipts in the Central Bank of Nigeria (CBN).
A TSA is a unified structure of government bank accounts or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at all times.
The president’s directive is contained in a statement issued in Abuja on Sunday by Mr Laolu Akande, the Senior Special Assistant on Media and Publicity to Vice President Yemi Osinbajo.
Akande said that with the new directive, henceforth, all receipts due to the Federal Government or any of its agencies must be paid into TSA or designated accounts.
He explained that the measure was aimed at promoting transparency, ensure compliance with sections 80 and 162 of the 1999 Constitution and end the previous public accounting system of several fragmented accounts for government revenues, incomes and receipts.
According to the statement, the directive applies to fully funded organs of government like the MDAs and foreign missions, as well as the partially funded ones, such as teaching hospitals, medical centres and federal tertiary institutions.
It said the directive affected Agencies such as the CBN, SEC, CAC, NPA, NCC, FAAN, NCAA, NIMASA, NDIC, NSC, NNPC, FIRS, NCS, MMSD and DPR, except for those expressly exempted.
The statement further added that any agency that was fully or partially self-funding, must maintain in the CBN, sub-accounts linked to TSA, and the accounting system would be configured to allow them access to the funds, subject to their approved budgets.
It would be recalled that, over the years, the now jettisoned system had led to huge losses or leakages of legitimate income meant for the Federation Account, thereby, necessitating the adoption of the new measures to block financial loopholes.