By Wahab Akanji, Abuja

 

The Federal Government has stated that the total amount of money mopped up into the Treasury Single Account (TSA) has hit the sum of N2.3trillion.

TSA: FG saves N2.3tr, says compliance rate of MDAs now 98 per cent 

By Wahab Akanji, Abuja

 

The Federal Government has stated that the total amount of money mopped up into the Treasury Single Account (TSA) has hit the sum of N2.3trillion.

 

The announcement came from the Office of the Accountant General of the Federation (OAGF) on Monday.

 

Director of Funds of the office, Mr. Mohammed Dikwa, made this disclosure after the opening session of the workshop on TSA at Abuja.

 

According to Dikwa, “Over 17,000 bank accounts were being operated at the federal level at the commercial banks. And as a result, we introduced the TSA. So far, so good, about N2.3trillion has been mopped into the various accounts maintained and operated at the CBN.”

 

The Accountant General of the Federation (AGF), Alhaji Ahmed Idris dropped the hint that 98 per cent of the Ministries Departments Agencies (MDAs) have complied with the TSA.

 

He said that following the government directive of February 2015, all Federal Government MDAs are now on TSA operating their account successfully through the Central Bank of Nigeria (CBN).

 

Idris added that “as at December 2015, 726 MDAs, which are responsible for almost 98 per cent of the national budget have complied fully.”

 

According to him, the challenges encountered in the adoption of the TSA were entrenched resistance from banks and the MDAs, which the Federal Government has now triumphed over.

 

With the massive compliance, said the AGF, the new challenge is that of capacity building, and the application of information technology.

 

In her opening remarks, the Minister of Finance, Kemi Adeosun, who was represented by Mr. Adeseye Shefuye said that the  balance, which changes daily as Ministries Departments and Agencies (MDA’s)  remit revenues and make payments, according to the latest reports from Central Bank of Nigeria (CBN) exceeded N2.2 Trillion.

 

She said that “I can report that work is now ongoing within the Treasury, to determine how much of these funds can potentially be utilised to part fund the 2016 budget and how much relates to pending commitments. This, of course, will reduce the amount to be borrowed.”

TSA, said the minister, has provided government with financial information on the revenues of agencies funded by government and has reduced revenue suppression.

 

She noted that this information is being used to drive our programme to enforce compliance with the Fiscal Responsibility Act and ensure that Revenue Generating Agencies generate expected surpluses and remit to the Federal Purse.

 

Adeosun added that the “TSA has eliminated opportunities for brokerage and other corrupt practices that previously encouraged agencies to accumulate funds with commercial banks rather than apply them to their intended uses.

 

“We believe that this will reduce payment delays to contractors, minimise late payment penalties and will consequently improve project completion times and service delivery.

 

“TSA has corrected the practice of government borrowing short term funds at high rates of interest, whilst simultaneously having idle funds in various bank accounts.

 

“By reducing the number of accounts in operation, monitoring and control has significantly improved.”

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