The presidency has issued a statement ordering every federal government ministry, parastatal and agencies to begin remitting its earnings into a Treasury Single Account (TSA).
TSA is a bank account 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 any given time.
The account will serve as the account that will house government revenues, incomes and other receipts in other to promote transparency and facilitate compliance with sections 80 and 162 of the 1999 Constitution.
The statement which was issued by the senior special assistant to the vice president Yemi Osinbanjo, Laolu Akande, revealed that henceforth, all receipts due to the federal government or any of its agencies must be paid into the TSA or other designated accounts maintained and operated in the Central Bank of Nigeria (CBN).
By this directive, the Nigerian government hopes to block all losses, loopholes or leakages of legitimate income meant for the federation account.
President Muhammadu Buhari had given the hint for this decision when he told state governors at the first meeting of the National Economic Council that all revenues prescribed for lodgement into the federation account will be treated as such under his watch.
The directive also affects partially funded organs of government like Teaching Hospitals, Medical Centres, Federal Tertiary Institutions, etc. Agencies like the CBN, SEC, CAC, NPA, NCC, FAAN, NCAA, NIMASA, NDIC, NSC, NNPC, FIRS, NCS, MMSD, DPR are also affected.
The TSA will be maintained at CBN and the accounting system will be configured to allow the agencies access funds based on their approved budgetary provisions by the federal government.
In a related development, the governor of Kaduna state, Mallam Nasir El-Rufai, has directed all banks hosting the state government’s revenue and expenditure accounts to close them.