Katsina is first state to implement the Treasury Single Account (TSA),Dr Bala Salisu-Zango, the Commissioner for Information and Culture has said.
Salisu-Zango made this known to the News Agency of Nigeria (NAN) on Sunday in Katsina.
The commissioner said the implementation of the TSA will bring all government funds in bank accounts within the effective control and operational purview of the treasury.
”The implementation is in order to enthrone centralised, transparent and accountable revenue management.
”The TSA will facilitate effective management of the government’s finances, bank and cash position, ensure cash availability, and promote efficiency.
”If government accounts are unified in a single unit, it will block lickages and the administration will be able to fulfill its campaign promises to the people,” he said.
NAN reports that Gov. Dikko Radda on July 3, directed all ministries, departments and agencies of the Katsina State Government to forthwith adopt the TSA for all their transactions.
The governor gave the order in a circular dated July 3, 2023 and titled: “Treasury Single Account Direction Notice 2023,” which he personally signed.
The TSA is a financial policy in use in several countries all over the world.
It was proposed by the federal government of Nigeria in 2012 under the Jonathan Administration and was fully implemented by the Buhari adminitrsation to consolidate all inflows from all agencies of government into a single account at the Central Bank of Nigeria.
Nigeria, like many countries, employed fragmented systems in handling government receipts and payments. Establishing a unified structure as recommended by the IMF, where all government funds are collected in one account would reduce borrowing costs, extend credit and improve government’s fiscal policy among other benefits to government.
NAN reports that the IMF also recommends the establishment of a legal basis to ensure its robustness and stability.
The introduction of the TSA is vital in reducing the proliferation of bank accounts operated by ministries, departments and agencies (MDAs) towards promoting financial accountability among governmental organs. (NAN)