– Implication of Treasury Single Account on Banking Sector –
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INTRODUCTION
At Present, developing and have massively engaged in the transition from manual to more in government activities, predominantly in the area of public fund management. Most renowned among them is the effort at reviving of the Treasury Single Account (TSA) policy. The effectiveness of the policy commenced through the to all revenue – generating agencies to maintain single accounts with commercial banks.
Treasury Single Account is a public accounting system under which all government revenue, receipts and income are collected into one single account, usually maintained by the country’s Central Bank and all payments done through this account as well. The purpose is primarily to ensure accountability of government revenue, enhance transparency and avoid misapplication of public funds.
Section 80 (1) of the 1999 Constitution as amended states “All revenues, or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.
In view of this section, successive governments have continued to operate multiple accounts for the collection and spending of government revenue in flagrant disregard to the provision of the constitution which requires that all government revenues be remitted into a single account. It was not until 2012 that government ran a pilot scheme for a single account using 217 ministries, department and agencies as a test case. The pilot scheme saved Nigeria about N500 billion in frivolous spending.
The success of the pilot scheme motivated the government to fully implement TSA, leading to the directives to banks to implement the that will help accommodate the TSA scheme. The recent directives by the Buhari Administration that all government revenues should be remitted to a Treasury Single Account is in consonance with this programme and in compliance with the provisions of the 1999 constitution (CBN, 2015).
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