Katsina State government has become the pioneer state to implement the Treasury Single Account (TSA), according to Dr Bala Salisu-Zango, the Commissioner for Information and Culture.
In an interview with the News Agency of Nigeria in Katsina on Sunday, Mr Salisu-Zango made this significant announcement.
He highlighted that the implementation of the TSA will consolidate all government funds in bank accounts, bringing them under the effective control and operational purview of the treasury.
”The implementation of this policy aims to establish centralized, transparent, and accountable revenue management,” stated the commissioner.
He further added, “The TSA will facilitate the effective management of the government’s finances, bank, and cash position, ensuring cash availability and promoting efficiency.”
”With the unification of government accounts into a single unit, leakages will be minimized, enabling the administration to fulfill its campaign promises to the people,” he emphasized.
NAN reports that Governor Dikko Radda, on July 3, issued a circular titled “Treasury Single Account Direction Notice 2023,” which personally directed all ministries, departments, and agencies of the Katsina State Government to adopt the TSA for all transactions.
Furthermore, the governor instructed the state’s Accountant General to establish the framework within which ministries, departments, and agencies will conduct their bank and cash transactions under the TSA.
The TSA is a financial policy that has been successfully implemented in several countries worldwide.
In Nigeria, it was proposed by the federal government in 2012 under the Jonathan Administration and fully implemented by the Buhari administration. The purpose of the policy is to consolidate all inflows from government agencies into a single account at the Central Bank of Nigeria.
Nigeria, like many countries, previously had fragmented systems for handling government receipts and payments. By establishing a unified structure as recommended by the IMF, where all government funds are collected in one account, borrowing costs can be reduced, credit can be extended, and the government’s fiscal policy can be improved, among other benefits.
The IMF also advises the establishment of a legal basis to ensure the robustness and stability of the TSA.
The introduction of the TSA is particularly important in curbing the proliferation of bank accounts operated by ministries, departments, and agencies (MDAs), which in turn promotes financial accountability within government institutions.
NAN
