TREASURY SINGLE ACCOUNT (TSA): END OF THE ROAD? By Ògbéni Czar

Between 2009 and 2012 only, a little above #9.3trillion were not remitted to the Federal Government accounts by the various Ministries, Departments and Agencies (MDAs) of government. These monies were FIXED in many commercial banks by the various agencies and government establishments, thereby leaving the Federal Government at their masses. The Fiscal Responsibility Act of 2003 in Section 22 (1) stipulates that all Ministries, Departments and Agencies can withhold 20% of operating surpluses and remit 80% of such to the Federal Government accounts. But over time, what has hitherto happened is that most, if not all MDAs stretch their operating expenses to cover the 80% expected to be remitted to the FG.

Ipso facto, we see deputy directors, directors, permanent secretaries, and their 'boiz' in the various offices build mansions, highrising in choice areas of Maitama, Asokoro, Aso Drive districts of Abuja. The Consolidated Revenue Fund (CRF) which expectedly should have monies from various government institutions continues therefore to 'beg for fund'. That was why corporation such as the Nigerian National Petroleum Corporation, NNPC was described as another 'country' because things were done with impunity. NNPC's operating expenses was about 101%, that is how lugubrious the situation was.

THE NEED FOR TSA

For the lay man who is not finance-oriented, what does Treasury Single Account (TSA) mean. The TSA is a mechanism that ensures that unlike what was obtained in the past where government institutions had proliferation of accounts with many commercial banks, the Federal Government will now have a single account for all its finances to be handled by the Central Bank of Nigeria, CBN. A cross-session of the country has said it was wrong for CBN to embark on such 'move' because of its effects on banks businesses. It is true about ‪#‎6billion‬ or ‪#‎600billion‬(as said in some quarters) will be moped from the various banks but I made bold to say Nigerian economy cannot continue to be run for banks.

By the way, the Central Bank of Nigeria (CBN) Act 2003 states that the CBN is a banker to government which by implication means it can conveniently perform retail banking. The Bank of England houses all government funds, ditto for France, Germany and some other countries world over. It is no gainsaying the fact that it is sickly for any economy to run its banking system on government deposits. The banking industry has hitherto ripped off the entire with their underhand dealings, frivolous charges, round-tripping and what have you. It is time for the industry to go back to the drawing board and think more on how to run its business profitably without necessarily shortchanging the government and the led!

DON'T LOSE SLEEP

Laudable as the move by the Federal Government to block leakages in its finances might be, hence the introduction of Treasury Single Account, TSA, it should also not lose sleep over it. The sacrosanct truth is that corruption is dynamic in nature, it is a monster which will always fight back. It is not alone to run a TSA, it is wholesome too to do everything humanly possible to ensure the possibility of the 'evil spirit' coming back in whatever form is blocked!