President Muhammadu Buhari has ordered every Federal Government Ministries, Departments and Agencies (MDAs) to open and start paying their revenues and receipts into a Treasury Single Account (TSA).
This directive was contained in a statement, issued by Vice-President Yemi Osinbajo’s senior special assistant on media and publicity, Laolu Akande.
The statement stressed that 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 CBN except otherwise expressly approved.
The statement read “This directive applies to fully funded organs of government like the Ministries, Departments, Agencies and Foreign Missions, as well as the partially funded ones, like Teaching Hospitals, Medical Centres, Federal Tertiary Institutions, etc.
“For any agency that is fully or partially self-funding, 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 statement explained that the TSA is “a unified structure of government bank accounts enabling consolidation and optimal utilization of government cash resources.
“It 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.”
Also affected are agencies like the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Nigeria Ports Authority (NPA), Nigeria Communications Commission (NCC) and Federal Airports Authority of Nigeria (FAAN).
Others are the Nigeria Civil Aviation Authority (NCAA), Nigeria Maritime Administration and Safety Agency (NIMASA), Nigeria Deposit Insurance Corporation (NDIC), Nigeria National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR), Federal Inland Revenue Service (FIRS), National Sports Commission (NSC) and the Ministry of Mines and Steel Development (MMSD).
Mr Akande further said that the directive, was “specifically aimed at promoting transparency and compliance with sections 80 and 162 of the 1999 Constitution.
It is believed that the directive issued by President Buhari will lead to the end of the previous public accounting situation of several fragmented accounts for government revenues, incomes and receipts which facilitated loss or leakages of legitimate income meant for the Federation Account.