Determined to underscore his serious resolve to ensure that all revenues due to the Federal Government be paid into the designated accounts in the Central Bank of Nigeria (CBN), President Muhammadu Buhari has set September 15 as deadline for full compliance with the Treasury Single Account (TSA).
The TSA is expected to boost revenue collections against leakages and ensure timely disbursement of funds to beneficiaries of the Federation Accounts among others.
The system also aims at eradicating loss and leakages of legitimate revenue meant for the Consolidated and Federation Accounts is a unified structure of government bank accounts which enables consolidation and optimal utilization of government cash resources.
It is a bank account which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.
Although, Ahmed Idris, Accountant General of the Federation in July had disclosed of a pool of N511 billion, as well as noticeable improvement in non-oil revenue against Mineral Revenue which were shared at the month meeting of the Federation Account Allocation Committee (FAAC).
Incidentally, the initiative to maintain a single account where all accruals will come into a single account came into existence during the former president Goodluck Jonathan’s administration, even though his government could not enforce its compliance.
After several attempts by the former government to ensure revenue generating agencies comply, but without success, Danladi Kifasi, the Head of Service on August 7 issued a circular directing all the revenue agencies and others to ensure and adhere to strict compliance with the TSA directive.
The circular – HCSF/428/S.1/125 of September 4, 2015 noted that a number of MDAs were yet to comply with Circular Ref. No. HCSF/428/S.1/120 of August 7, 2015 which conveyed President Buhari’s original directive on the payment of all Federal Government revenue into a Treasury Single Account.
“In this regard, His Excellency, Mr. President has directed that all MDAs are to comply with the instructions on the Treasury Single Account (TSA) unfailingly by Tuesday, September 15, 2015.
“Heads of MDAs and other arms of Government are enjoined to give this Circular the widest circulation and ensure strict compliance to avoid sanctions,” Kifasi warned.
Following this circular, all MDAs are expected to begin strict compliance or face sanctions.
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