MDAs ordered to open Treasury Single Account

NairaFrom AUGUSTINE OSAYANDE in Abuja, Nigeria
ABUJA, (CAJ News) – IN a move aimed at promoting transparency and facilitate compliance with sections of the  Constitution,Nigeria  president Muhammadu Buhari has ordered all Federal Government Ministries,Departments and Agencies (MDAs) to start paying into a Treasury Single Account(TSA) for all government revenues, incomes and other receipts.

Laolu Akande, the Senior Special Assistant to the Vice President on Mediaand Publicity, said hereafter, all receipts due to the Federal Governmentor any of its agencies must be paid into TSA or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), exceptotherwise expressly approved.A 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 thegovernment transacts all its receipts and payments and gets a consolidatedview of its cash position at any given time.This presidential directive would end the previous public accounting situation of several fragmented accounts for government revenues, incomesand receipts, which in the recent past has meant the loss or leakages oflegitimate income meant for the federation account.

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 andFederal Tertiary Institutions.“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 approvedbudgetary provisions,” Akande stated from Abuja.

Buhari had earlier promised state governors at the inaugural meeting ofthe National Economic Council all revenues prescribed for lodgement intothe federation account will be treated as such under his watch and that hewill ensure strict compliance with all relevant laws on accounting,allocation and disbursement.

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Posted by on Aug 10 2015. Filed under Africa & World, Featured, Finance, Finance & Banking, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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