In the event of Ministries Departments and Agencies, MDAs fully complying with the Presidency’s directive to pay all their monies into a Treasury Single Account, TSA, banks may lose N60billion saved with them by the MDAs.
The Presidency had yesterday directed the MDAs to move all their monies to the TSA and other designated accounts maintained and operated in the Central Bank of Nigeria, CBN. It said the order was to promote transparency and ensure compliance with sections 80 and 162 of the 1999 Constitution.
In a statement issued by the Senior Special Assistant to the Vice President on‎ Media and Publicity, Mr. Laolu Akande, the Presidency directed all receipts due to the Federal Government or any of its agencies to be paid into TSA or designated accounts maintained and operated in the CBN, except otherwise expressly approved.
On the other hand, findings are that Nigerian lenders (the banks) may lose nothing less than sixty billion naira as a result of the transparency move.
The directive, the statement said is targeted at bringing an end to the previous public accounting situation of several fragmented accounts for public revenues, incomes and receipts, which in the past led to loss or leakages of legitimate income meant for the Federation Account.
The directive applies to fully funded organisations of government such as MDAs and foreign missions, as well as the partially funded ones: teaching hospitals, medical centres and federal tertiary institutions.
For any agency that is fully or partially self-funding, Sub-Accounts linked to TSA are to be maintained at CBN and the accounting system will be configured to allow them access to funds based on their approved budgetary provisions.
A TSA is defined as unified structure of government bank accounts enabling consolidation and optimal utilisation of government cash resources. It is a bank account or a set of linked bank accounts through which the government transacts all its receipts and payments and gets a consolidated view of its cash position at any given time.
Nigerian Pilot recalls that when the issue earlier came on board, lending outfits expressed concerns over the implication(s) of the enforcement of the TSA.
Their fear stems from the fact that its implementation, in addition to the tight monetary stance of the CBN, would put another squeeze on the banks.
“There is the fear of liquidity squeeze due to the likelihood of unification of government accounts by the Buhari administration. The fear is borne out of the fact that with the Monetary Policy Rate at 13 per cent, Cash Reserve Ratio, CRR at 20 per cent and 75 percent for private and public sector deposits respectively, the TSA would be tough for banks,” a senior industry player, who sought anonymity had said.
Also, returns of lenders in the economy, driven substantially by net interest margins, would further be crimped by the TSA implementation.
This is because the single account, which is supposed to unify and monitor incoming and outgoing government transactions for transparency and accountability, will deny the banks of over N60billion funds belonging to MDAs currently in the vaults of banks.
An analyst with Afrinvest Securities Limited, Ayodeji Ebo, had said: “In our opinion, the implementation of a Treasury Single Account is expected to block revenue leakages within the government parastatals as the Ministry of Finance will be able to monitor the inflows and outflows, hence augment the reduction in oil revenue due to falling oil prices.”

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