FG Closes 20,000 Bank Accounts moves money to TSA

FG Closes 20,000 Bank Accounts moves money to TSA

After the launch of  Treasury Single Account (TSA) in September 2015, the FG closed over 20,000 Bank accounts with a total of N5.24 trillion Naira which belonged to Ministries of Department  and agencies.

  Ali Ahmed Idris, Account General of Federation gave out the figures on Tuesday while speaking at the opening session of the two day retreat on TSA held in Abuja. Among those who attended the event are Vice President Yemi Osibanjo, Minister of Finance, Mrs Kemi Adeosun, Secretary to the Government of Federation, Mr Babachir Lawal and other top government officials. Theme of the event “One year anniversary of Treasury Single Account: Benefits, Challenges and Way Forward.”

The aim of the TSA is to ensure that all government accounts belonging to the federal government are kept with the Central Bank of Nigeria.

Since the commencement of TSA there has been drastic decrease in bank jobs. However, the Account General described the implementation of TSA as one of the success stories in the management of public finances. For instance, the TSA has aided the government to overcome the burden of indiscriminate borrowings from MDAs thereby saving government from bank charges associate with borrowings.

Before the commencement of TSA, the government incurred 4.7 billion Naira on monthly bank charges. However, the elimination of TSA eliminated these bank charges.

Account General, Idris explained how long it took them to implement this Treasury Single Account (TSA).

The TSA journey started way back in April 2012. That journey could not see the light of the day as no significant gains were recorded largely due to the lack of political will. However, the issuance of TSA circular in August 2015, coupled with the political will and enforcement, enabled us to achieve considerable progress on the TSA implementation. As at the 10th of February, 2017, the total inflow of funds through the mop-up and direct debits by the central Bank of Nigeria amounted to N5.24trn. We have successfully eliminated multiple banking arrangements, resulting into consolidation of over 20,000 bank accounts, which were spread over Deposit Money Banks across the country. This has further brought about transparency and effective tracking of government revenues.

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