The new revelations emerging from the House of Representatives panel probing the status of Treasury Single Account [TSA], chaired by Rep Abubakar Nuhu Danburam (APC, Kano), have been astounding.
In this report, Financialtechnology presents eight of the numerous revelations that the probe has unearthed.
- Nigeria’s foreign revenues are not channeled to the federation account through the TSA platform and, only the local component of Nigeria’s earnings goes to the federation account through the TSA gateway, known as Remita.
- Some government agencies still post monies in bulk instead of on transaction basis to the TSA platform.
- Federal Government owes banks and Systemspecs billions of Naira for processing the TSA fund.
- Banks are still holding on to public funds amounting to several billion outside the TSA in violation of a circular from the Accountant General of the Federation (AGF), which directed that all public funds domiciled in banks be transferred to respective accounts with the Central Bank of Nigeria (CBN).
- TSA has become an orphan as the CBN and the AGF would not take full responsibility for the control and management of the platform. Recall that the AGF had complained of limitations in accessing the TSA accounts at the CBN. But the apex bank had suggested that the AGF should access the TSA through the office the AGF.
- Absence of guidelines and procedure on the management and protection of TSA from possible abuse by stakeholders.
- TSA collections fee is the cheapest in the public sector as against NPA/Intel’s Pilotage Services collection fee: 28% (in Forex); Nigeria Custom cost of collections fee: 7%; FIRS cost of collections fee: 4%.
- Judiciary and the National Assembly monies are expressly exempted from the TSA for some reasons.