Accountant General of the Federation (AGF), Mr. Ahmed Idris says Federal Government saves N4.7 billion monthly from charges imposed by banks for managing its funds since the introduction of Treasury Single Account (TSA).
Speaking in Abuja at a two day workshop for finance journalists on TSA and other public financial management reforms, Idris the amount represent what government incurred as bank charges, interest on loans, account maintenance fees and other charges prior to introduction of TSA.
He stated that the policy has enabled government to block leakages and abuse which characterised public sector finance before its advent in September 2015
In addition, TSA has assisted government to overcome the burden of indiscriminate borrowings by MDAs thus saving government a lot of bank charges associated with these borrowings.
“TSA has enabled us to make tremendous gains to the Federal Government and to the Nigerian economy. We have successfully eliminated multiple banking arrangements resulting in consolidation of over 20,000 bank accounts which were spread over Deposit Money Banks across the country.”
“This has further brought about transparency and effective tracking of government revenues. It has also led to the blocking of leakages and abuse which characterised the public financial management before the implementation of the TSA.”
“TSA has taken us out of the era of indiscriminate borrowings by MDAs and saved government the charges associated with those borrowings which hitherto amounted to N4.7bn monthly.”
“I can therefore confidently assert that TSA has been beneficial to all stakeholders and the country as a whole.”
Speaking on payment of backlogs of promotional arrears civil servants, the AGF noted that government has commenced the process of making payments to those affected.
Already, N13.2bn has been provided for the payments of such backlogs.
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