TSA: Presidency says makes N13b daily from agencies

Since the full take off of the Treasury Single Account (TSA), all federal government agencies rake in an average of N13 billion daily.

Osinbajo

Osinbajo

This disclosure was made by Vice President Yemi Osinbajo who was represented by Dr Adeyemi Dipeolu, Special Adviser, Economic Matters to the President, office of the Vice President at a two-day retreat to review TSA implementation in Abuja.

According to Vice President Osinbajo, “there is now improved visibility of Government revenues and cash flows. Before TSA implementation, it was difficult for relevant Institutions to determine the Federal Government cash position in a timely manner. Now the position is clear; with an average of N13 billion accruing to all Government agencies every single working day. This improves decision making and engenders efficiency in Public Financial Management.”

Another key outcome of the implementation of TSA he said “has been the elimination of the revenue and expenditure float. Before TSA, it took an average of 28 days to access cash after the revenue had been collected through commercial banks and about 21 days for MDAs to access their budgetary allocations after release from Treasury. These timing differences which adversely affected budget implementation have now been eliminated.”

The Vice President was happy that the implementation of TSA has led to significant “removal of ways and means financing costs that were depleting resources available for service delivery through budget implementation.”

With these development, Osinbajo stated that “the economy is set to reap the full benefits of blocking the leakages in revenue collection that hitherto fuelled corruption and impaired growth.”

This improved transparency the Vice President added now “discourages would-be offenders as information technology solutions deployed as a result of TSA implementation means that there are no more hiding places.”

Vice President Osinbajo noted that “there is more to be done to harness the benefits of TSA implementation. For instance, the reforms we have started with regard
to budget preparation must continue to completion. Ideally, the budget should be comprehensive and transparent and as much as possible enacted before the beginning of the financial year.”

Osinbajo cautioned that, “since most of the cash resources moved into TSA are extra budgetary harvesting the fruits of TSA implementation would entail that public resources be allocated in a manner that would enable total fungibility of cash.”

In her address, the minister of finance Mrs Kemi Adeosun disclosed that “as at 10th February, 2017, the total inflow of funds through the mop-up and direct debits by CBN into the TSA amounted N5.244 trillion.”

Adeosun who was represented by the Accountant General of the Federation (AGF) noted that “the implementation of TSA has brought about considerable gains to the federal government and to the Nigerian economy.”

Since this administration commenced full implementation of the TSA programme over a year ago, government, the finance minister said has “successfully eliminated multiple banking arrangements, resulting into consolidation of over 20,000 bank accounts; which were spread over Deposit Money Banks (DMBs) across the country.”

This she said has further brought about transparency and effective tracking of government revenues, in addition to “blocking of leakages and abuse, which characterized the public finance management before implementation of TSA.”

TSA, she said has taken us out of the era of indiscriminate borrowings by Ministries Departments and Agencies (MDAs) and saved government, charges associated with those borrowings which amounted to an average  of N4.7 billion monthly prior to full implementation of TSA.”

Adeosun explained that “TSA needs to go beyond mere cash management, we should explore the inherent potential of TSA and identify most economically viable options of resource utilization and deployment particularly under the present economic recession.”

Speaking with the media on the at the sidelines, Managing Director of Systempecs Limited, Mr. John Obaro described TSA as a good development which has added value to the economy, stressing that “for this kind of projects, there would be the initial settling down issues which was exactly what happened. Now things are reasonably settling down, we can begin to speak to the real issue.

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