TSA: Nigerian govt to decentralize service cost — Finance Minister
The Federal Government has said it will decentralize the service cost of Treasury Single Account (TSA); insisting that the policy has come to stay.
Minister of Finance, Kemi Adeosun disclosed this at the event to mark “One Year Anniversary of TSA” in Abuja on Tuesday.
“One of the challenges that we have is “who should bear the cost of TSA. Currently it’s being bore centrally,” she said.
“What we’ve discovered is that is not sustainable. We are now working on how we stratify the various agencies. Those who should bear their own cost and those who government should bear their own cost depending on the type of transaction”
According to Adeosun TSA is one amongst Buhari’s treasure reforms.
“TSA has come to stay. It’s an important reform of this government.
“It has allowed us to reduce our borrowing cost. It has allowed us to manage our teaser functions with far more accuracy than we have in the past”.
The government however admits that there are areas that require improvements but in the overall the policy is a success.
“There is still along way to go particularly with the functionality, speed of transaction we would like to see some improvement in that. But overall we are very satisfy with the progress that we’ve made on the TSA regime and we look forward to it being extended.”
The Journey of TSA begun in 2004. In 2012, about a hundred ministries, Departments and Agencies (MDAs) were test run. However, the total implementation of the policy was premise on the executive order issued by in August 2015 President Buhari directing that all MDAs close their accounts with deposit money banks DMB and transfer such accounts to Central Bank of Nigeria (CBN).
The directive led to the closure of over 20,000 bank accounts ran by MDAs.